Charter Hall Retail REIT expands into hardware, lifts FY26 forecast

Charter Hall Retail REIT (ASX:CQR) has acquired four net lease convenience hardware assets from Bunnings for a total of $151 million. The properties, located in Goulburn (NSW), Toowoomba, Airlie Beach, and Cairns (Queensland), feature lease terms up to 10 years with annual rent reviews between 2.5% and 3.0%. These acquisitions are expected to provide 100% occupancy and minimal capital expenditure, aligning with CQR's convenience retail strategy.

The acquisitions, fully funded by existing debt capacity, are anticipated to enhance earnings and IRR for the CQR portfolio. Consequently, Charter Hall Retail Management Limited has increased its FY26 earnings guidance to no less than 26.4cpu, representing at least 4.0% growth over FY25.

In conjunction with the earnings upgrade, CQR also forecasts an increase in its FY26 distribution per unit guidance to 25.5cpu, reflecting a 6.1% distribution yield and at least 3.3% distribution growth over FY25. The company's annual general meeting on October 30, 2025, also saw the re-election of independent directors Mr. Paul Craig and Ms. Sue Palmer.