Charter Hall Social Infrastructure REIT grows profit 25% in FY20 and other APAC REIT news

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Charter Hall Social Infrastructure REIT (CQE) grew net profit grew 25% year-on-year to A$85.9m during the 12 months to end-June 2020. 

The REIT recorded A$64.3m in net property income during the 2020 financial year, up from A$59.6m in 2019. 

The REIT set distribution at 16 cents per unit, with balance sheet gearing of 16.4% and $289.6m in liquidity. 

“The COVID-19 pandemic has resulted in significant challenges for the childcare sector, however the Government support has demonstrated the essential nature of the sector,” said Charter Hall Social Infrastructure REIT fund manager Travis Butcher.

“Our focus has been to strengthen CQE’s balance sheet with gearing reduced to 16.4% whilst focussing on improving the overall WALE of the portfolio. CQE is well capitalised to manage the ongoing impact of the COVID-19 pandemic and to take advantage of any attractive long WALE social infrastructure opportunities that may arise in the future.”

Charter Hall Social Infrastructure REIT shares closed 4.66% higher at A$2.47.

Index Change Value at close
S&P/ASX 200 A-REIT +2.06% 1,266.10
S&P/ASX 200 +0.47% 6,138.70
FTSE ST REITS -0.73% 831.11
STI -0.05% 2,544.15
Tokyo Stock Exchange REIT +0.24% 1,675.41
Nikkei 225 +1.88% 22,750.24
Hang Seng REIT +0.58% 5,482.10
Hang Seng +2.11% 24,890.68

Singapore: Lendlease Global REIT posts S$45m loss in first nine months

Lendlease Global REIT (JYEU) recorded a 15.6% fall in net property income to S$40.3m between October 2019 and end-June 2020, compared to its forecast. 

The REIT, which listed on the SGX last October, made a loss after tax of S$45.2m for the period, but set its distribution per unit at 3.05 cents per share, down 19.7% on its forecast. 

Total borrowings stood at S$545.3m as of end-June, reflecting a gearing ratio of 35.1%. 

“The retail space market fundamentals continue to look encouraging with little supply expected over the next two to three years,” the REIT said of the Singapore retail market. “ This points to a tightening of [the] vacancy environment, which will support modest leasing activities in the medium term.” (Read more)

Lendlease Global REIT shares finished trading 1.54% lower at S$0.64.

Australia: Investec Australia Property Fund buys Brisbane warehouse development for A$15.6m

Investec Australia Property Fund (IAP) has acquired an industrial warehouse development in Brisbane on a fund-through basis for A$15.6m, representing an initial yield of 6.25%. 

IAP bought the 9,300 sq.m. warehouse and distribution facility from developer Felton Property Group, with development scheduled for completion in June next year. 

The asset is located 23km north of Brisbane CBD and will be entirely occupied by 4WD Supacentre on a six-year lease, with net passing rent of $105 per sq.m. and annual rental escalations of 2.75%.

“Industrial property has proven to be relatively resilient despite the current health and economic challenges, and the acquisition increases the Fund’s industrial exposure to 31% by both income and Value,” said IAP CEO Graeme Katz. (Read more)

IAP shares closed 0.43% higher at A$1.18.

Japan: One REIT plans to issue up to JPY 4bn in corporation bonds

One REIT Inc. (3290) will be able to raise up to JPY 4bn from the sale of domestic unsecured investment corporation bonds after passing a resolution on bond sales. 

The company plans to issue bonds in amounts of JPY 100m or more between now and end-October 2020 on an unsecured and unguaranteed basis with no specific assets reserved.

The REIT said the proceeds would be used to refinance existing debts. One REIT, which owns office and retail buildings in Tokyo and other Japanese cities, had JPY 47.3bn of borrowings, as of end-June 2020. (Read more)