There have been a number of earnings releases again on Friday.
Two ASX 300 REITs that are catching the eye with their results are listed below. Here's what they reported:
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Charter Hall Retail REIT (ASX: CQR)
The Charter Hall Retail share price is up 3.5% to $3.40 on Friday morning.
Investors have been buying the leading owner of convenience retail property after it delivered a solid first-half result.
Charter Hall Retail's result revealed steady income growth and high occupancy. Net property income (NPI) increased 3%, with shopping centres delivering 2.5% growth, while net lease retail NPI rose 4.5%. Its occupancy remains robust, with the Shopping Centre Convenience Retail portfolio sitting at 98.7%.
Management also revealed that Specialty leasing continues to perform well, with positive leasing spreads of 3.8%, supported by 99 lease renewals (+3.1% leasing spread) and 44 new leases (+5.9% leasing spread).
This ultimately led to the company reporting operating earnings of $73.1 million or 12.6 cents per share.
The ASX 300 REIT's CEO, Ben Ellis, was pleased with the half. He said:
CQR's portfolio continues to deliver strong operational performance. Our unique blend of convenience shopping centre and convenience net lease assets provides an attractive income growth profile with lower capital commitments. We have been active during the half on both the acquisition and divestment front in our pursuit of maximising future income growth.
Our significant investment in the ASX listed HPI, alongside our wholesale capital partner Hostplus, will enhance the overall portfolio's income growth profile. We are progressing well towards our objective of delivering the highest organic property income and earnings growth from the convenience retail sector.
Looking ahead, the company continues to expect its FY 2025 operating earnings to be approximately 25.4 cents per share and its FY 2025 distribution to be in line with last year's distribution of 24.7 cents per share.
HealthCo Healthcare and Wellness REIT (ASX: HCW)
The HealthCo Healthcare and Wellness share price is up almost 2% to 99.75 cents.
This morning, the health and wellness focused property company released its half year results and reported funds from operations (FFO) of $23.5 million or 4.2 cents per share. This represents 5% growth over the prior corresponding period.
The ASX 300 REIT's balance sheet metrics remain healthy, with gearing at 32.4%, which is sitting at the lower end of its 30–40% target range. It also has $115 million in available liquidity.
Cash rent collection was 100%, with occupancy maintained at 99%. The ASX 300 REIT's weighted average lease expiry (WALE) stood at 11.6 years at the end of December, with 82% of leases locked in beyond FY 2030.
HealthCo Healthcare and Wellness also addressed recent market speculation surrounding its major tenant Healthscope.
While discussions are ongoing regarding a long-term solution, it has ruled out providing further rental support. Should Healthscope breach its lease obligations, the company would look for other tenants and has already received interest from other hospital operators.
Looking ahead, HCW has reaffirmed its FY 2025 guidance of 8.4 cents FFO per unit and 8.4 cents distributions per share. Though, this is subject to the continued performance of its portfolio and Healthscope's contractual obligations.
