Charter Hall confirms 48 new Goodstart leases, boosts valuations and declares special dividend

The Charter Hall Social Infrastructure REIT has released a fund update confirming that it has agreed to new 20 year leases on 48 properties currently leased to Goodstart Early Learning, its largest tenant. 

Over the course of the last 12 months Charter Hall has agreed to in excess of 100 new leases for Goodstart properties, having confirmed 58 had been signed in its HY2020 Results announcement in February 2021. 

Goodstart is Charter Hall Social Infrastructure Fund’s largest tenant generating around 45 per cent of all annual rent for the REIT. 

In addition, the REIT confirmed that it will pay a special dividend of 4.0 cents per unit, in addition to the 4.1 centres per unit distribution planned for the June Quarter 2021. 

A significant increase in portfolio valuations across 211 centres, around 61 per cent of the portfolio, which were independently valued, resulted in a 12.3 per cent uplift to their book value which has been the key driver behind the dividend actions. 

The passing yield on these properties has firmed by 56 bps to 5.7 per cent.

The unaudited impact of the valuation increases will see pro-forma Net Tangible Asset (NTA) per unit increase to $3.27, up 8.1 per cent relative to the 31 December 2020 period. 

The total gross asset value of the portfolio of child care centres increased to $1.17 billion, an increase of 7.5 per cent compared to 31 December 2020 and compared to last year, the like for like increase in valuation of the portfolio was 10.8 per cent. 

CQE will report the REIT’s Financial Year 2021 Results on 12 August 2021.

To read the announcement, see here.