Charter Hall Retail REIT (CQR) AI Stock Analysis

• Market Cap: €2.31B
• Dividend Yield: 6.12%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.79
• Revenue Growth: -7.70%
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 58
• Industry: REIT - Retail
• EPS (TTM): 0.13
• Shares Outstanding: 581,229,600
• 10 Day Avg. Volume: 2,327,974
• 30 Day Avg. Volume: 1,599,585
• PEG Ratio: -0.75
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €4.02
• Price Target Upside: 1.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: AU$4.50 ▲(13.35%Upside)

Charter Hall Retail REIT's overall stock score is strong, driven by robust financial performance and attractive valuation. While technical indicators suggest overbought conditions, the stock's fundamentals and valuation provide a favorable outlook.

Charter Hall Retail REIT Business Overview & Revenue Model

Company Description

Charter Hall Retail REIT is the leading owner and manager of property for convenience retailers. Charter Hall Retail REIT is managed by Charter Hall Group (ASX:CHC). With over 29 years' experience in property investment and funds management, we're one of Australia's leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across our core sectors – office, retail, industrial and social infrastructure. Operating with prudence, Charter Hall Group as Manager of CQR has carefully curated a $40 billion diverse portfolio of over 1100 high quality, long leased properties. Partnership and financial discipline are at the heart of our approach. Acting in the best interest of customers and communities, we combine insight and inventiveness to unlock hidden value. Taking a long term view, our $7.3 billion development pipeline delivers sustainable, technologically enabled projects for our customers.

How the Company Makes Money

Charter Hall Retail REIT generates revenue primarily through rental income from its portfolio of retail properties. These properties are typically leased to major retailers such as supermarkets and specialty stores, providing a steady stream of income through long-term leasing agreements. The company benefits from strategic partnerships with leading retailers, which enhance the stability and growth potential of its rental income. Additionally, CQR may engage in property development and asset recycling activities to optimize its portfolio and sustain earnings growth. The REIT's focus on strategically located retail centers with strong tenant covenants contributes significantly to its revenue generation.

Charter Hall Retail REIT Financial Statement Overview

Summary

Charter Hall Retail REIT demonstrates strong cash flow and a solid balance sheet with a healthy equity ratio and manageable debt levels. However, declining net profit margin and ROE indicate challenges in maintaining profitability. Focus on operational efficiency and revenue growth is crucial.

Income Statement

The gross profit margin is healthy, consistently over 60%, indicating effective cost management. However, the net profit margin has declined significantly to 7.97% in 2024 from 17.63% in 2023, showing a decrease in profitability. Revenue growth is minimal with a slight increase of 0.56% from 2023 to 2024. EBIT margin has improved from 51.03% in 2023 to 54.16% in 2024, suggesting operational efficiency, but EBITDA margin is not as strong as in prior years.

Balance Sheet

The debt-to-equity ratio improved slightly to 0.40 in 2024 from 0.43 in 2023, indicating manageable leverage levels. Return on equity has declined sharply due to reduced net income, standing at 0.65% in 2024. The equity ratio is strong at 68.94%, reflecting a solid asset base backed by equity, which provides stability.

Cash Flow

Operating cash flow remains robust at $148.6 million in 2024, though slightly lower than the previous year. Free cash flow has grown by 62.94% since 2023, highlighting improved cash management. The operating cash flow to net income ratio is high, indicating strong cash generation relative to net income.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	264.80M	215.60M	214.40M	200.80M	191.60M	206.10M
Gross Profit	211.70M	129.60M	127.40M	117.80M	112.40M	127.50M
EBITDA	13.00M	116.80M	76.60M	691.20M	315.10M	85.50M
Net Income	167.90M	17.20M	37.80M	663.60M	291.20M	44.20M
Balance Sheet
Total Assets	4.19B	3.80B	4.10B	4.04B	3.34B	3.11B
Cash, Cash Equivalents and Short-Term Investments	43.60M	18.70M	22.40M	21.80M	19.30M	80.50M
Total Debt	1.40B	1.04B	1.20B	1.04B	883.50M	830.40M
Total Liabilities	1.54B	1.18B	1.35B	1.19B	1.04B	968.00M
Stockholders Equity	2.65B	2.62B	2.75B	2.85B	2.31B	2.14B
Cash Flow
Free Cash Flow	149.80M	148.60M	91.20M	-54.60M	179.00M	132.90M
Operating Cash Flow	149.80M	148.60M	162.20M	158.20M	179.00M	132.90M
Investing Cash Flow	-154.20M	165.40M	-161.70M	-212.80M	-238.20M	-150.10M
Financing Cash Flow	21.50M	-317.70M	100.00K	57.10M	-2.00M	92.90M

Charter Hall Retail REIT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CQR, the sentiment is Neutral. The current price of 3.97 is below the 20-day moving average (MA) of 4.03, above the 50-day MA of 3.90, and above the 200-day MA of 3.48, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.86 is Neutral, neither overbought nor oversold. The STOCH value of 22.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:CQR.

Charter Hall Retail REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CQR	74 Outperform	€2.31B	13.91	6.37%	6.12%	-7.70%	―
Sector *	53 Neutral	$1.21B	3.20	-0.13%	9.61%	-1.86%	-126.37%
SCPAF		$1.75B	22.67	4.80%	4.83%	―	―
BWP	77 Outperform	AU$2.55B	8.77	10.93%	5.14%	19.08%	―
HDN	74 Outperform	AU$2.70B	12.91	6.98%	6.54%	-1.08%	―
CLW	71 Outperform	AU$2.98B	―	-5.75%	5.97%	-15.42%	65.86%
DXC	63 Neutral	AU$411.89M	20.78	4.00%	6.87%	-0.80%	―

Charter Hall Retail REIT Corporate Events

Charter Hall Retail REIT Announces New Distribution for Investors

Charter Hall Retail REIT has announced a new distribution of AUD 0.124 per ordinary unit, covering a six-month period ending on June 30, 2025. The ex-date is set for June 27, 2025, with the record date on June 30, 2025, and payment scheduled for August 29, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness in the retail property investment sector.

The most recent analyst rating on (AU:CQR) stock is a Hold with a A$3.40 price target. To see the full list of analyst forecasts on Charter Hall Retail REIT stock, see the AU:CQR Stock Forecast page.

Charter Hall Retail REIT Announces Board Changes with New Appointment

Charter Hall Retail REIT has announced the appointment of Paul Craig as an Independent Non-Executive Director of its Responsible Entity, effective from July 4, 2025. Paul Craig brings 30 years of property experience, including significant expertise in retail transactions and property management, which is expected to enhance the company’s strategic positioning as a leading owner of convenience-based retail assets. Concurrently, Lianne Buck will retire from the Board to join the Lendlease Group, marking a significant change in the board’s composition.

The most recent analyst rating on (AU:CQR) stock is a Hold with a A$3.40 price target. To see the full list of analyst forecasts on Charter Hall Retail REIT stock, see the AU:CQR Stock Forecast page.

Milford Asset Management Ceases Substantial Holding in Charter Hall Retail REIT

Charter Hall Retail REIT has announced that Milford Asset Management Limited has ceased to be a substantial holder in the company. This change in substantial holding could impact the company’s voting securities and potentially influence its market dynamics, as Milford Asset Management Limited was a significant shareholder.

Milford Asset Management Reduces Stake in Charter Hall Retail REIT

Milford Asset Management Limited has reduced its voting power in Charter Hall Retail REIT from 6.525% to 5.514%, reflecting a decrease in its holdings of fully paid ordinary shares. This change in substantial holding may impact the company’s shareholder dynamics and influence future decision-making processes.

Charter Hall Retail REIT Director Increases Stake

Charter Hall Retail REIT announced a change in the director’s interest, with David William Harrison acquiring 100,978 additional securities through an on-market trade, increasing his total holdings to 235,356. This acquisition reflects a significant increase in direct ownership, potentially indicating confidence in the company’s future performance and aligning the director’s interests with those of the shareholders.