Full Year 2026 Charter Hall Retail REIT Earning Call

August 7, 2026

Speaker #1: Ladies and gentlemen, thank you for standing by, and welcome to the Charter Hall Retail Q4 2026 results briefing. At this time, all participants are in a listen-only mode.

Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Charter Hall Retail REIT 2026 full year results briefing. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session, at which time if you wish to queue for a question, you will need to press star one one on your telephone keypad and wait for your name to be announced. Please note that this conference is being recorded today, Friday, 7 August 2026. I would now like to hand the conference over to your host today, Mr. Ben Ellis, Retail CEO and Executive Director, CQR. Thank you, sir. Please go ahead.

Speaker #1: There will be a presentation followed by a question-and-answer session. At that time, if you wish to queue for a question, you will need to press star one-one on your telephone keypad.

Speaker #1: And wait for your name to be announced. Please note that this conference is being recorded today, Friday, August 7, 2026. I would now like to hand the conference over to your host today, Mr. Ben Ellis, Retail CEO and Executive Director, CQR.

Speaker #1: Thank you, sir. Please go ahead.

Speaker #2: Good morning, and welcome to the Charter Hall Retail REIT Q4 2026 results presentation. My name is Ben Ellis. I am the Retail CEO of Charter Hall and an Executive Director of CQR.

Ben Ellis: Good morning and welcome to Charter Hall Retail REIT's FY26 full year results presentation. My name is Ben Ellis. I am the Retail CEO of Charter Hall and an Executive Director of CQR. I am joined today by Joanne Donovan, Head of Retail Finance at Charter Hall. I would like to begin today's presentation with an acknowledgment of country. Charter Hall acknowledges the traditional custodians of the lands on which we work and gather. We pay our respects to elders past and present and recognize their continued care for and connection to country. Now turn to slide four and our FY26 highlights. Today, we are pleased to provide an update on our FY26 results and our outlook for FY27. FY26 was another strong year for CQR, with the REIT continuing to execute its strategy to deliver the highest income and earnings growth from the convenience retail sector.

Ben Ellis: Good morning and welcome to Charter Hall Retail REIT's FY 2026 full year results presentation. My name is Ben Ellis. I am the Retail CEO of Charter Hall and an Executive Director of CQR. I am joined today by Joanne Donovan, Head of Retail Finance at Charter Hall. I would like to begin today's presentation with an acknowledgment of country. Charter Hall acknowledges the traditional custodians of the lands on which we work and gather. We pay our respects to elders past and present and recognize their continued care for and connection to country. Now turn to slide four and our FY 2026 highlights. Today, we are pleased to provide an update on our FY 2026 results and our outlook for FY 2027. FY 2026 was another strong year for CQR, with the REIT continuing to execute its strategy to deliver the highest income and earnings growth from the convenience retail sector.

Speaker #2: I'm joined today by Joanne Donovan, Head of Retail Finance at Charter Hall. I would like to begin today's presentation with an Acknowledgment of Country.

Speaker #2: Charter Hall acknowledges the Traditional Custodians of the lands on which we work and gather. We pay our respects to Elders past and present, and recognize their continued care for and connection to Country.

Speaker #2: Now turn to slide 4 and our Q4 2026 highlights. Today, we are pleased to provide an update on our Q4 2026 results and our outlook for Q4 2027.

Speaker #2: Q4 2026 was another strong year for CQR, with the REIT continuing to execute its strategy to deliver the highest income and earnings growth from the convenience retail sector.

Speaker #2: CQR upgraded operating earnings during Q4 2026 to 26.4 cents per unit, an increase of 4% over Q4 2025 OEPS. During Q4 2026, CQR delivered same property NPI growth of 3%, driven by 3% like-for-like growth across both the shopping center and net lease portfolios.

Ben Ellis: CQR upgraded operating earnings during FY26 to AUD 0.264 per unit, an increase of 4% over FY25 OEPS. During FY26, CQR delivered same property NPI growth of 3%, driven by 3% like-for-like growth across both the shopping center and net lease portfolios. The growth in NTA has also been very strong, increasing to AUD 5.03 per unit, up 8.4% over June 2025. This was driven by strong income growth, the CapEx efficiency of our portfolio, and continued tenant and investor demand for high-quality assets in the convenience retail sector. The combination of strong NPI growth and valuation growth across FY26 has resulted in CQR's property portfolio delivering a 12-month total return of 15.8%. CQR's balance sheet gearing is 30.9%. Over FY26, we successfully transitioned to a secure debt platform, resulting in a significant reduction in our debt margin by 40 basis points to 1.25%.

Ben Ellis: CQR upgraded operating earnings during FY 2026 to AUD 0.264 per unit, an increase of 4% over FY25 OEPS. During FY 2026, CQR delivered same property NPI growth of 3%, driven by 3% like-for-like growth across both the shopping center and net lease portfolios. The growth in NTA has also been very strong, increasing to AUD 5.03 per unit, up 8.4% over June 2025. This was driven by strong income growth, the CapEx efficiency of our portfolio, and continued tenant and investor demand for high-quality assets in the convenience retail sector. The combination of strong NPI growth and valuation growth across FY 2026 has resulted in CQR's property portfolio delivering a 12-month total return of 15.8%. CQR's balance sheet gearing is 30.9%. Over FY 2026, we successfully transitioned to a secure debt platform, resulting in a significant reduction in our debt margin by 40 basis points to 1.25%.

Speaker #2: The growth in NPI has also been very strong, increasing to $5.03 per unit, up 8.4% over June 2025. This was driven by strong income growth, the CapEx efficiency of our portfolio, and continued tenant and investor demand for high-quality assets in the convenience retail sector.

Speaker #2: The combination of strong NPI growth and valuation growth across Q4 2026 has resulted in CQR's property portfolio delivering a 12-month total return of 15.8%.

Speaker #2: CQR's balance sheet gearing is 30.9%. Over Q4 2026, we successfully transitioned to a secure debt platform, resulting in a significant reduction in our debt margin by 40 basis points, to 1.25%.

Speaker #2: We also achieved significant improvement in headroom to all debt covenants, and all off-balance sheet debt is neither cross-collateralized nor is there any recourse to CQR's balance sheet.

Ben Ellis: We also achieved significant improvement in headroom to all debt covenants and all off-balance sheet debt is neither cross-collateralized, nor is there any recourse to CQR's balance sheet. Our portfolio performance remains strong, with occupancy reaching a record 99.1%. As we will touch on later in the presentation, collectively, our portfolio metrics are amongst the strongest in the REIT's history. As a result of the performance of our portfolio, CQR expects FY27 operating earnings of no less than AUD 0.273 per unit, representing growth of no less than 3.5% on FY26, and distributions per unit to be no less than AUD 0.264 per unit, also representing growth of no less than 3.5% over FY26. Turn to slide five and the REIT strategy. CQR strategy remains focused on delivering the highest property income and earnings growth from the convenience retail sector.

Ben Ellis: We also achieved significant improvement in headroom to all debt covenants and all off-balance sheet debt is neither cross-collateralized, nor is there any recourse to CQR's balance sheet. Our portfolio performance remains strong, with occupancy reaching a record 99.1%. As we will touch on later in the presentation, collectively, our portfolio metrics are amongst the strongest in the REIT's history. As a result of the performance of our portfolio, CQR expects FY 2027 operating earnings of no less than AUD 0.273 per unit, representing growth of no less than 3.5% on FY 2026, and distributions per unit to be no less than AUD 0.264 per unit, also representing growth of no less than 3.5% over FY 2026. Turn to slide five and the REIT strategy. CQR strategy remains focused on delivering the highest property income and earnings growth from the convenience retail sector.

Speaker #2: Our portfolio performance remains strong, with occupancy reaching a record 99.1%. As we’ll touch on later in the presentation, collectively our portfolio metrics are among the strongest in the REIT’s history.

Speaker #2: As a result of the performance of our portfolio, CQR expects Q4 2027 operating earnings of no less than 27.3 cents per unit, representing growth of no less than 3.5% on Q4 2026, and distributions per unit to be no less than 26.4 cents per unit, also representing growth of no less than 3.5% over Q4 2026.

Speaker #2: Turn to slide 5 and the REIT strategy. CQR’s strategy remains focused on delivering the highest property income and earnings growth from the convenience retail sector.

Speaker #2: We do this by investing in dominant convenience retail properties, including convenience-based shopping centers and net lease retail assets anchored by major leading tenants. Our convenience-based assets are dominant in their catchments and are focused on nondiscretionary goods and services, delivering resilient performance throughout all economic cycles.

Ben Ellis: We do this by investing in dominant convenience retail properties, including convenience-based shopping centers and net lease retail assets anchored by major leading tenants. Our convenience-based assets are dominant in their catchments and are focused on non-discretionary goods and services, delivering resilient performance throughout all economic cycles. Additionally, the net lease portfolio benefits from capital-efficient triple net and double net leases, strong tenant covenants, long WALE, and inflation-linked annual rent reviews. Turn to slide six. Charter Hall has Australia's largest convenience retail platform, with 169 retail specialists around Australia managing approximately AUD 18 billion of convenience retail assets across more than 900 properties. I'm proud of our team's dedication and their disciplined focus on maximizing asset productivity and driving strong income and value growth for CQR's unitholders.

Speaker #2: Additionally, the net lease portfolio benefits from capital-efficient triple-net and double-net leases, strong tenant covenants, long WALE, and inflation-linked annual rent reviews. Turn to slide 6.

Speaker #2: Charter Hall has Australia's largest convenience retail platform, with 169 retail specialists around Australia managing approximately $18 billion of convenience retail assets across more than 900 properties.

Speaker #2: I'm proud of our team's dedication and their disciplined focus on maximizing asset productivity and driving strong income and value growth for CQR's unit holders.

Speaker #2: We believe Charter Hall's integrated platform of property, finance, and investment specialists, focused on the objective of driving income, earnings, and valuation growth for our investors, is a clear competitive advantage to CQR's unitholders.

Ben Ellis: We believe Charter Hall's integrated platform of property, finance, and investment specialists focused on the objective of driving income, earnings, and valuation growth for our investors is a clear competitive advantage to CQR's unitholders. Turn to slide seven. CQR remained disciplined in its capital recycling program, strategically reallocating capital into high-quality convenience retail assets offering attractive income growth and enhanced capital efficiency. During the period, CQR increased its investment in the Charter Hall Ampol Partnership Number One to 49.9% and invested AUD 251 million across the high-quality shopping center portfolio of Gympie Central, Whitsunday Plaza, and Armadale Central at an average yield of 6.7%. Post-balance date, CQR further expanded the portfolio through the acquisition of the exceptionally strong trading Woolworths anchored Yeppoon Central in Queensland for AUD 65.3 million at a yield of 6.5%.

Speaker #2: Now, turn to slide 7. CQR remained disciplined in its capital recycling program, strategically reallocating capital into high-quality convenience retail assets offering attractive income growth and enhanced capital efficiency.

Speaker #2: During the period, CQR increased its investment in the Charter Hall Ampol Partnership #1 to 49.9% and invested $251 million across the high-quality shopping centre portfolio of Gympie Central, with Sunday’s Plaza and Armadale Central, at an average yield of 6.7%.

Speaker #2: Post-balance date, CQR further expanded the portfolio through the acquisition of the exceptionally strong trading, Woolworths-anchored Yeppoon Central in Queensland for $65.3 million at a yield of 6.5%.

Speaker #2: During the period, CQR also completed the sale of its interest in retail partnership number 6 to CCRF and finalized the divestment of Lancel Square. Post-balance date, CQR settled the previously disclosed sale of Arana Hills in Queensland, Kings Langley in New South Wales, and Butler Shopping Centre in WA for $210 million at an average yield of 5.3%.

Ben Ellis: During the period, CQR also completed the sale of its interest in Retail Partnership Number Six to CCRF and finalized the divestment of Landsdale Square. Post-balance date, CQR settled the previously disclosed sale of Arana Hills in Queensland, Kings Langley in New South Wales, Butler Central in WA for AUD 210 million at an average yield of 5.3%. Turn to slide eight. CQR continued to execute on its portfolio curation strategy throughout FY26, further enhancing the quality, resilience, and diversification of the portfolio. In 2015, CQR's portfolio was entirely neighborhood shopping centers and was valued at AUD 2.2 billion. Today, CQR's convenience retail portfolio has grown to approximately AUD 5.3 billion and has been strategically curated to approximately 50% high-quality shopping centers and 50% net lease convenience retail assets that benefit from inflation-linked annual rent reviews, long WALE, high-quality tenant covenants, and CapEx-efficient triple net leases.

Ben Ellis: During the period, CQR also completed the sale of its interest in Retail Partnership Number Six to CCRF and finalized the divestment of Landsdale Square. Post-balance date, CQR settled the previously disclosed sale of Arana Hills in Queensland, Kings Langley in New South Wales, Butler Central in WA for AUD 210 million at an average yield of 5.3%. Turn to slide eight. CQR continued to execute on its portfolio curation strategy throughout FY 2026, further enhancing the quality, resilience, and diversification of the portfolio. In 2015, CQR's portfolio was entirely neighborhood shopping centers and was valued at AUD 2.2 billion. Today, CQR's convenience retail portfolio has grown to approximately AUD 5.3 billion and has been strategically curated to approximately 50% high-quality shopping centers and 50% net lease convenience retail assets that benefit from inflation-linked annual rent reviews, long WALE, high-quality tenant covenants, and CapEx-efficient triple net leases.

Speaker #2: Turn to slide 8. CQR continued to execute on its portfolio curation strategy throughout Q4 2026, further enhancing the quality, resilience, and diversification of the portfolio.

Speaker #2: In 2015, CQR's portfolio was entirely neighborhood shopping centers and was valued at $2.2 billion. Today, CQR's convenience retail portfolio has grown to approximately $5.3 billion and has been strategically curated to approximately 50% high-quality shopping centers and 50% net lease convenience retail assets that benefit from inflation-linked annual rent reviews, long W.A.L.E.s, high-quality tenant covenants, and CapEx-efficient triple-net leases.

Speaker #2: As a result of this deliberate portfolio transformation, CQR now offers stronger income growth potential throughout all economic cycles, lower capital expenditure and outgoings leakage, greatly enhanced tenant covenant quality, and greater diversification than all sector peers.

Ben Ellis: As a result of this deliberate portfolio transformation, CQR now offers stronger income growth potential throughout all economic cycles, lower capital expenditure and outgoings leakage, greatly enhanced tenant covenant quality, and a greater diversification than all sector peers. Turning to slide nine. Slide nine highlights how CQR's long-term portfolio curation strategy has enhanced portfolio quality and delivered sector-leading income and earnings growth. In the five years prior to our portfolio curation, CQR predominantly consisted of neighborhood shopping centers with poor lease structures and a lower proportion of anchor tenants paying percentage rental. Over this same five-year period to FY19, the average NPI growth of the portfolio was a modest 1.9% per annum. It was also CapEx heavy, with an average capital expenditure of AUD 75 million per annum, representing approximately 2.8% of the total portfolio value.

Speaker #2: Turning to slide 9. Slide 9 highlights how CQR's long-term portfolio curation strategy has enhanced portfolio quality and delivered sector-leading income and earnings growth. In the five years prior to our portfolio curation, CQR predominantly consisted of neighborhood shopping centers with poorer lease structures and a lower proportion of anchor tenants paying percentage rent.

Speaker #2: Over this same five-year period to Q4 '19, the average NPI growth of the portfolio was a modest 1.9% per annum. It was also CapEx heavy, with an average capital expenditure of $75 million per annum, representing approximately 2.8% of the total portfolio value.

Speaker #2: Through Charter Hall's active management and disciplined capital recycling, convenience retail shopping centre NPI growth has increased to 3% in Q4 2026. This improvement has been driven by a combination of factors, including the disposal of lower-growth assets, increasingly stronger supermarket lease structures, and a sector-leading percentage of supermarkets paying turnover rental.

Ben Ellis: Through Charter Hall's active management and disciplined capital recycling, convenience retail shopping center NPI growth has increased to 3% in FY26. This improvement has been driven by a combination of factors, including the disposal of lower growth assets, increasingly stronger supermarket lease structures, and a sector-leading percentage of supermarkets paying turnover rental. The addition of net lease convenience retail assets has not only further strengthened the portfolio performance through strong net effective annual rent growth linked to inflation, but because of their triple and double net lease structures have significantly reduced capital expenditure requirements for the CQR portfolio. Today, we not only benefit from stronger NPI growth, but our portfolio capital expenditure has reduced to just 0.5% of portfolio value. The result is a portfolio generating higher income growth with significantly lower capital intensity, supporting stronger and more sustainable earnings growth for CQR investors. Turn to slide 10.

Ben Ellis: Through Charter Hall's active management and disciplined capital recycling, convenience retail shopping center NPI growth has increased to 3% in FY 2026. This improvement has been driven by a combination of factors, including the disposal of lower growth assets, increasingly stronger supermarket lease structures, and a sector-leading percentage of supermarkets paying turnover rental. The addition of net lease convenience retail assets has not only further strengthened the portfolio performance through strong net effective annual rent growth linked to inflation, but because of their triple and double net lease structures have significantly reduced capital expenditure requirements for the CQR portfolio. Today, we not only benefit from stronger NPI growth, but our portfolio capital expenditure has reduced to just 0.5% of portfolio value. The result is a portfolio generating higher income growth with significantly lower capital intensity, supporting stronger and more sustainable earnings growth for CQR investors. Turn to slide 10.

Speaker #2: The addition of net lease convenience retail assets has not only further strengthened the portfolio performance through strong net effective annual rent growth linked to inflation, but, because of their triple and double net lease structures, has significantly reduced capital expenditure requirements for the CQR portfolio.

Speaker #2: Today, we not only benefit from stronger NPI growth, but our portfolio capital expenditure has reduced to just 0.5% of portfolio value. The result is a portfolio generating higher income growth with significantly lower capital intensity, supporting stronger and more sustainable earnings growth for CQR investors.

Speaker #2: Turn to slide 10. Not only has our strategic portfolio curation driven an acceleration in income growth and CapEx efficiency for CQR unitholders, it has also created significant equity value growth.

Ben Ellis: Not only has our strategic portfolio curation driven an acceleration in income growth and CapEx efficiency for CQR unitholders, it's also created significant equity value growth. CQR's original invested equity on a like-for-like basis in the net lease portfolio has grown by 35% or AUD 317 million, delivering an equity IRR of over 18%. These returns demonstrate that the net lease retail portfolio has not only improved CQR's income quality and resilience, but has also been a meaningful driver of NTA growth and total value creation for unitholders. No other portfolio in the sector can speak to these results. Importantly, it is the access to off-market deals generated by the Charter Hall platform that delivered these opportunities to CQR.

Speaker #2: CQR's original invested equity, on a like-for-like basis, in the net lease portfolio has grown by 35%, or $317 million, delivering an equity IRR of over 18%.

Speaker #2: These returns demonstrate that the net lease retail portfolio has not only improved CQR's income quality and resilience, but has also been a meaningful driver of NTA growth and total value creation for unitholders.

Speaker #2: No other portfolio in the sector can speak to these results. Importantly, it is the access to off-market deals generated by the Charter Hall platform that delivered these opportunities to CQR.

Speaker #2: Access to the Charter Hall platform is a unique benefit to CQR and its shareholders, and I would like to thank the Charter Hall team for their ongoing expertise and support in driving market-leading property returns for CQR unitholders.

Ben Ellis: Access to the Charter Hall platform is a unique benefit to CQR and its shareholders, and I'd like to thank the Charter Hall team for their ongoing expertise and support in driving market-leading property returns for CQR unitholders. Turn to slide 11. Slide 11 again demonstrates the benefits of CQR's ongoing portfolio curation to higher growth, higher quality assets in both the net lease and convenience-based shopping centre sectors. Whilst cap rates remain relatively stable from June 2020 through to June 2026, CQR's portfolio value on a like-for-like basis has increased by 32.9%, demonstrating both the quality of our portfolio and the benefit of portfolio curation towards assets with stronger income growth and CapEx efficiency. Put simply, CQR's valuations have grown by 32.9% through genuine rental growth rather than cap rate compression.

Speaker #2: Turn to slide 11. Slide 11 again demonstrates the benefits of CQR's ongoing portfolio curation to higher-growth, higher-quality assets in both the net lease and convenience-based shopping center sectors.

Speaker #2: Whilst cap rates have remained relatively stable from June 2020 through to June 2026, CQR's portfolio value on a like-for-like basis has increased by 32.9%, demonstrating both the quality of our portfolio and the benefit of portfolio curation towards assets with stronger income growth and CapEx efficiency.

Speaker #2: Put simply, CQR’s valuations have grown by 32.9% through genuine rental growth rather than cap rate compression. This NTA growth delivered for CQR unit holders is a demonstration of our stated strategy in action, which is to deliver the highest income and earnings growth from the convenience retail sector.

Ben Ellis: This NTA growth delivered for CQR unitholders is a demonstration of our stated strategy in action, which is to deliver the highest income and earnings growth from the convenience retail sector. I'll now hand over to Joanne to talk through the financial results for the period before moving on to the operational performance into more detail.

Speaker #2: I'll now hand over to Joanne to talk through the financial results for the period, before moving on to the operational performance in some more detail.

Speaker #1: Thanks, Ben, and good morning. Our operating earnings can be found on slide 13. CQR delivered same property NPI growth of 3%, supported by 3% like-for-like growth across both the shopping centre and net lease retail portfolios.

Joanne Donovan: Thanks, Ben, and good morning. Our operating earnings can be found on slide 13. CQR delivered same property NPI growth of 3%, supported by 3% like-for-like growth across both the shopping center and net lease retail portfolios. Finance costs increased during the period, largely reflecting acquisition activity, while CQR's weighted average cost of debt is 5%. Operating earnings were AUD 0.264 per unit for the year, up 4% on FY25. Distributions were AUD 0.255 per unit, up 3.3% on FY25. Turning now to slide 14 on the balance sheet. NTA per unit increased by 8.4% to AUD 5.3. This was largely driven by favorable net valuation uplift. Strong valuation and income growth has delivered a 12-month levered portfolio ROR of 15.8%. Our key valuation metrics are shown on slide 15. The portfolio has delivered a net valuation increase of AUD 248 million or 4.9%.

Speaker #1: Finance costs increased during the period, largely reflecting acquisition activity, while CQR's weighted average cost of debt is 5%. Operating earnings were 26.4 cents per unit for the year.

Speaker #1: Up 4% on Q4 2025. Distributions were 25.5 cents per unit, up 3.3% on Q4 2025. Turning now to slide 14 and the balance sheet.

Speaker #1: NTA per unit increased by 8.4% to $5.03. This was largely driven by favorable net valuation uplift. Strong valuation and income growth have delivered a 12-month leveraged portfolio IRR of 15.8%.

Speaker #1: Our key valuation metrics are shown on slide 15. The portfolio has delivered a net valuation increase of $248 million, or 4.9%. This reflects shopping center net valuation uplift of $147 million, together with net lease valuation growth of $101 million.

Joanne Donovan: This reflects shopping center net valuation uplift of AUD 147 million, together with net lease valuation growth of AUD 101 million. The portfolio weighted average cap rate is 5.45%, firming 29 basis points over the year, or 16 basis points on a like-for-like basis. This reflects the continued tenant and investor demand for high-quality convenience retail assets. At 30 June 2026, 71% of the portfolio was externally revalued. The remaining energy and fuel portfolio will be revalued following the annual rent review based on the September 2026 CPI print. This will further support both income and valuation growth. Slide 16 highlights our capital management. CQR completed the refinance of its balance sheet debt to a secure debt platform in February 2026. The refinance reduced debt margins by 40 basis points to 125 basis points and extended the weighted average debt maturity, while also providing greater financial flexibility and covenant headroom.

Speaker #1: The portfolio weighted average cap rate is 5.45%, firming 29 basis points over the year, or 16 basis points on a like-for-like basis. This reflects the continued tenant and investor demand for high-quality convenience retail assets.

Speaker #1: At 30 June 2026, 71% of the portfolio was externally revalued. The remaining energy and fuel portfolio will be revalued following the annual rent review, based on the September 2026 CPI print.

Speaker #1: This will further support both income and valuation growth. Slide 16 highlights our capital management. CQR completed the refinance of its balance sheet debt to a secured debt platform in February 2026.

Speaker #1: The refinance reduced debt margins by 40 basis points to 125 basis points and extended the weighted average debt maturity, while also providing greater financial flexibility and covenant headroom.

Speaker #1: Covenant LVR is now 65%, and is on a balance sheet. Off-balance sheet debt is now the cross-collateralized, nor is there any recourse to CQR's balance sheet.

Joanne Donovan: Covenant LVR is now 65% and is on a balance sheet basis. All off-balance sheet debt is neither cross-collateralized, nor is there any recourse to CQR's balance sheet. Balance sheet gearing is 30.9% on a pro forma basis. CQR remains highly hedged with 67% hedging in FY27 and 46% in FY28, supporting earnings visibility in the current interest rate environment. I'll now hand back to Ben to provide the operational update.

Joanne Donovan: Covenant LVR is now 65% and is on a balance sheet basis. All off-balance sheet debt is neither cross-collateralized, nor is there any recourse to CQR's balance sheet. Balance sheet gearing is 30.9% on a pro forma basis. CQR remains highly hedged with 67% hedging in FY 2027 and 46% in FY28, supporting earnings visibility in the current interest rate environment. I'll now hand back to Ben to provide the operational update.

Speaker #1: Balance sheet gearing is 30.9% on a pro forma basis. CQR remains highly hedged, with 67% hedging in Q4 2027 and 46% in Q4 2028.

Speaker #1: Supporting earnings visibility in the current interest rate environment. I'll now hand back to Ben to provide the operational update.

Speaker #2: Thanks, Joan. Turn now to slide 18 and the portfolio summary. Our diversified convenience retail portfolio has grown to $5.3 billion. Portfolio WALE has increased to 7.1 years with major tenant WALE of 8.9 years.

Ben Ellis: Thanks, Jo. Turning to slide 18 and the portfolio summary. Our diversified convenience retail portfolio has grown to AUD 5.3 billion. Portfolio WALE has increased to 7.1 years, with major tenant WALE of 8.9 years. As noted earlier in the presentation, portfolio occupancy has reached a record high of 99.1% and is now broadly balanced between convenience-based shopping centers and the net lease portfolio. Turn to slide 19 on our strong tenant covenants. The portfolio remains underpinned by strong tenant covenants and broad retail category diversification, heavily weighted to non-discretionary spend. CQR's top 10 tenant customers are now all major anchor tenants, representing 61% of total portfolio rent. The quality of this roster is market leading and underpins CQR's earnings resilience. Turning now to slide 20 and our net lease portfolio. At financial year-end, the convenience net lease retail assets represented 49% of CQR's total portfolio by income.

Speaker #2: As noted earlier in the presentation, portfolio occupancy has reached a record high of 99.1% and is now broadly balanced between convenience-based shopping centers and the net lease portfolio.

Speaker #2: Turn to slide 19 and our strong tenant covenants. The portfolio remains underpinned by strong tenant covenants and broad retail category diversification, heavily weighted to non-discretionary spend.

Speaker #2: CQR's top 10 tenant customers are now all major anchor tenants, representing 61% of total portfolio rent. The quality of this roster is market-leading and underpins CQR's earnings resilience.

Speaker #2: Turning now to slide 20 and our net lease portfolio. At our financial year-end, convenience net lease retail assets represented 49% of CQR's total portfolio by income.

Speaker #2: These assets are all triple or double net leased, meaning they are free of any material capital expenditure and provide a true net effective yield for CQR investors.

Ben Ellis: These assets are all triple or double net leased, meaning they are free of any material CapEx and provide a true net effective yield for CQR investors. They continue to complement CQR's convenience-based shopping center portfolio, providing diversification benefits, enhanced tenant covenant quality, and greater income security. No other Australian REIT offers this compelling mix of a true net lease long WALE convenience retail asset portfolio alongside high-quality convenience-based shopping centers. It is also worth noting, as Jo touched on, that the majority of our energy and convenience assets have their annual rent review based upon the September 2026 CPI print. Following this rent review, the energy and convenience portfolio will be revalued and is anticipated to deliver not only strong inflation-linked rental growth, but also further NTA growth for CQR unitholders. Moving to slide 21 and our supermarket anchors.

Speaker #2: They continue to complement CQR's convenience-based shopping center portfolio, providing diversification benefits, enhanced tenant covenant quality, and greater income security. No other restraining rate offers this compelling mix of a true net lease, long-waul convenience retail asset portfolio alongside high-quality convenience-based shopping centers.

Speaker #2: It is also worth noting, as Joan touched on, that the majority of our energy and convenience assets have their annual rent review based upon the September 2026 CPI print.

Speaker #2: Following this rent review, the Energy and Convenience portfolio will be revalued and is anticipated to deliver not only strong inflation-linked rental growth, but also further NTA growth for CQR unitholders.

Speaker #2: Moving to slide 21 and our supermarket anchors. Across the supermarket operators, we remain well balanced between Coles and Woolworths and continue to partner with ALDI.

Ben Ellis: Across the supermarket operators, we remain well-balanced between Coles and Woolworths and continue to partner with ALDI. Strong trading supermarkets remain the foundation of CQR's convenience-based shopping center portfolio. During the period, supermarkets delivered strong MAT growth of 3.6%, up from 2.5% in June 2025. Supermarkets in turnover were within 10% of reaching their sales threshold is now at 89%, an all-time portfolio record high. This achievement supports stronger long-term rental growth for CQR and shows the benefit of active portfolio curation to drive the highest income earnings growth from the convenience retail sector. Turn to slide 22 and our specialty tenants. Over the period, specialty tenant sales productivity reached an all-time high of AUD 11,748 per square meter, with occupancy costs reducing to 10.9%, showing the strong sales growth of our tenants and providing capacity for ongoing and consistent rental growth.

Ben Ellis: Across the supermarket operators, we remain well-balanced between Coles and Woolworths and continue to partner with ALDI. Strong trading supermarkets remain the foundation of CQR's convenience-based shopping center portfolio. During the period, supermarkets delivered strong MAT growth of 3.6%, up from 2.5% in June 2025. Supermarkets in turnover were within 10% of reaching their sales threshold is now at 89%, an all-time portfolio record high. This achievement supports stronger long-term rental growth for CQR and shows the benefit of active portfolio curation to drive the highest income earnings growth from the convenience retail sector. Turn to slide 22 and our specialty tenants. Over the period, specialty tenant sales productivity reached an all-time high of AUD 11,748/sqm, with occupancy costs reducing to 10.9%, showing the strong sales growth of our tenants and providing capacity for ongoing and consistent rental growth.

Speaker #2: Strong trading supermarkets remain the foundation of CQR's convenience-based shopping centre portfolio. During the period, supermarkets delivered strong MAT growth of 3.6%, up from 2.5% in June 2025.

Speaker #2: Supermarkets in turnover were within 10% of reaching their seller threshold, which is now at 89%, an all-time portfolio record high. This achievement supports stronger long-term rental growth for CQR and shows the benefit of active portfolio curation to drive the highest income earnings growth from the convenience retail sector.

Speaker #2: Turn to slide 22 and our specialty tenants. Over the period, specialty tenant sales productivity reached an all-time high of $11,748 per square meter, with occupancy costs reducing to 10.9%, showing the strong sales growth of our tenants and providing capacity for ongoing and consistent rental growth.

Speaker #2: Notably, CQR's specialty shop retention rate increased to 86%, setting another record for the rate and reinforcing the value of our portfolio to our retailers.

Ben Ellis: Notably, CQR's specialty shop retention rate increased to 86%, setting another record for the REIT and reinforcing the value of our portfolio to our retailers. We completed 416 leasing transactions, achieving positive leasing spreads of 4.1% across the specialty tenant portfolio. CQR's specialty leasing spreads continue to compare favorably with our retail peers, demonstrating the strength of tenant demand given the growing productivity of our convenience-based shopping center portfolio. Well, I take the opportunity to thank the Charter Hall Retail team for another strong year. It is the quality, talent, and culture within the team that allows us to achieve these results. Slide 23 looks at our ESG highlights for the period. CQR has operated at net zero Scope 1 and Scope 2 emissions since 1 July 2025, with sustainability initiatives continuing to support customer outcomes, capital attraction, and long-term value creation.

Speaker #2: We completed 416 leasing transactions, achieving positive leasing spreads of 4.1% across the specialty tenant portfolio. CQR's specialty leasing spreads continue to compare favorably with our retail peers, demonstrating the strength of tenant demand given the growing productivity of our convenience-based shopping center portfolio.

Speaker #2: I'd like to take this opportunity to thank the Charter Hall Retail team for another strong year. It is the quality, talent, and culture within the team that allow us to achieve these results.

Speaker #2: Slide 23 looks at our ESG highlights for the period. CQR has operated at net zero Scope 1 and 2 emissions since 1 July 2025, with sustainability initiatives continuing to support customer outcomes, capital attraction, and long-term value creation.

Speaker #2: Across the portfolio, 19.5 megawatts of solar is installed across 76% of suitable shopping center roof space, supported by 15.4 megawatt-hours of battery capacity across eight sites, which is an increase of 4.1 megawatt-hours over FY25.

Ben Ellis: Across the portfolio, 19.5 MW of solar is installed across 76% of suitable shopping center roof space, supported by 15.4 MWh of battery capacity across 8 sites, which is an increase of 4.1 MWh over FY25. We also recognize the important role our centers play in the local communities. We remain focused on creating shared social value through national and local initiatives, including support for vulnerable women, First Nations engagement, and broader community partnerships. Finally, turn to slide 25 for outlook and guidance. CQR has now curated the portfolio to its target mix of approximately 50% high-quality shopping centers and 50% high-quality net lease retail assets.

Ben Ellis: Across the portfolio, 19.5MW of solar is installed across 76% of suitable shopping center roof space, supported by 15.4MWh of battery capacity across eight sites, which is an increase of 4.1MWh over FY25. We also recognize the important role our centers play in the local communities. We remain focused on creating shared social value through national and local initiatives, including support for vulnerable women, First Nations engagement, and broader community partnerships. Finally, turn to slide 25 for outlook and guidance. CQR has now curated the portfolio to its target mix of approximately 50% high-quality shopping centers and 50% high-quality net lease retail assets.

Speaker #2: We also recognize the important role our centers play in the local communities. We remain focused on creating shared social value through national and local initiatives, including support for vulnerable women, First Nations engagement, and broader community partnerships.

Speaker #2: Finally, turn to slide 25 for outlook and guidance. CQR has now curated the portfolio to its target mix of approximately 50% high-quality shopping centres and 50% high-quality net lease retail assets.

Speaker #2: This balance provides a stronger and more resilient platform for earnings growth through increasingly strong tenant covenant quality, a diversification of rent review structures linked to inflation, and capex-efficient lease structures, allowing us to achieve our stated strategy to deliver the highest income and earnings growth within the convenience retail sector.

Ben Ellis: This balance provides a stronger and more resilient platform for earnings growth through increasingly strong tenant covenant quality, a diversification of rent review structures linked to inflation, and CapEx efficient lease structures, allowing us to achieve our stated strategy to deliver the highest income and earnings growth within the convenience retail sector. Based on the information currently available and barring any unforeseen events, CQR expects FY27 operating earnings to be no less than AUD 0.273 per unit, representing growth of no less than 3.5% on FY26. Distributions per unit are expected to be no less than AUD 0.264 per unit, also representing growth of at least 3.5% over FY26. At CQR's closing security price on 6 August 2026 of AUD 4.06, this FY27 distribution guidance represents a distribution yield of 6.5%, which remains attractive in the context of CQR's income resilience and growth profile.

Ben Ellis: This balance provides a stronger and more resilient platform for earnings growth through increasingly strong tenant covenant quality, a diversification of rent review structures linked to inflation, and CapEx efficient lease structures, allowing us to achieve our stated strategy to deliver the highest income and earnings growth within the convenience retail sector. Based on the information currently available and barring any unforeseen events, CQR expects FY 2027 operating earnings to be no less than AUD 0.273 per unit, representing growth of no less than 3.5% on FY 2026. Distributions per unit are expected to be no less than AUD 0.264 per unit, also representing growth of at least 3.5% over FY 2026. At CQR's closing security price on 6 August 2026 of AUD 4.06, this FY 2027 distribution guidance represents a distribution yield of 6.5%, which remains attractive in the context of CQR's income resilience and growth profile.

Speaker #2: Based on the information currently available, and barring any unforeseen events, CQR expects FY27 operating earnings to be no less than 27.3 cents per unit, representing growth of no less than 3.5% on FY26.

Speaker #2: Distributions per unit are expected to be no less than 26.4 cents per unit, also representing growth of at least 3.5% over FY26. At CQR's closing security price on the 6th of August 2026, of $4.06, this FY27 distribution guidance represents a distribution yield of 6.5%, which remains attractive in the context of CQR's income resilience and growth profile.

Speaker #2: In closing, I'd like to add the following remarks. The outlook for convenience retail remains highly compelling. Australia's population is expected to grow by more than one million people over the next three years, while new retail supply is forecast to reach a 30-year low.

Ben Ellis: In closing, I'd like to add the following remarks. The outlook for convenience retail remains highly compelling. Australia's population is expected to grow by more than 1 million people over the next 3 years, while new retail supply is forecast to reach a 30-year low. This imbalance between demand and supply is already evident, with convenience retail portfolios across the country operating at near full occupancy and tenant demand for space in high-quality locations continuing to increase. Supported by these market dynamics, CQR's portfolio is strategically positioned to capture the benefits of population growth, urban densification, and constrained supply underpinning further growth in asset productivity and reinforcing the strength of the results delivered today. That ends the formal presentation. With that, I now invite questions.

Ben Ellis: In closing, I'd like to add the following remarks. The outlook for convenience retail remains highly compelling. Australia's population is expected to grow by more than 1 million people over the next three years, while new retail supply is forecast to reach a 30-year low. This imbalance between demand and supply is already evident, with convenience retail portfolios across the country operating at near full occupancy and tenant demand for space in high-quality locations continuing to increase. Supported by these market dynamics, CQR's portfolio is strategically positioned to capture the benefits of population growth, urban densification, and constrained supply underpinning further growth in asset productivity and reinforcing the strength of the results delivered today. That ends the formal presentation. With that, I now invite questions.

Speaker #2: This imbalance between demand and supply is already evident, with convenience retail portfolios across the country operating at near full occupancy and tenant demand for space in high-quality locations continuing to increase.

Speaker #2: Supported by these market dynamics, CQR's portfolio is strategically positioned to capture the benefits of population growth, urban densification, and constrained supply, underpinning further growth in asset productivity and reinforcing the strength of the results delivered today.

Speaker #2: That ends the formal presentation, and with that, I now invite questions.

Speaker #1: Thank you. Ladies and gentlemen, as a reminder, to ask a question, please press *11 on your telephone, then wait for your name to be announced.

Operator: Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 11 on your telephone, wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Solomon Zhang with UBS. Your line is open.

Operator: Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star one one on your telephone, wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Solomon Zhang with UBS. Your line is open.

Speaker #1: To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Solomon Zhang with UBS.

Speaker #1: Your line is open.

Speaker #3: Good morning, Ben and Joanne. Thanks for your time. I just wanted to ask about your EPS guidance and the baseline of 3.5% growth. I just wanted to understand whether this includes any net acquisitions or capital recycling initiatives that have positive spreads between your acquisitions and investments, or if that presents upside risk.

Solomon Zhang: Morning, Ben and Joanna. Thanks for your time. I just wanted to ask about your EPS guidance and the baseline of 3.5% growth. Just wanted to understand whether this includes any net acquisitions or capital recycling initiatives that + spreads between your acquisitions divestments, if that presents upside risk.

Solomon Zhang: Morning, Ben and Joanne. Thanks for your time. I just wanted to ask about your EPS guidance and the baseline of 3.5% growth. Just wanted to understand whether this includes any net acquisitions or capital recycling initiatives that + spreads between your acquisitions divestments, if that presents upside risk.

Speaker #2: Good morning, Solomon. No, we are not forecasting any acquisitions or divestments in our 3.5%.

Ben Ellis: Good morning, Solomon. No, we are not forecasting any acquisitions or divestments in our 3.5%.

Speaker #3: Great. And just on your payout ratio, you've effectively held it from FY26. I just wanted to confirm, is this going to be the new normal going forward, given the net lease capital drag is lower?

Solomon Zhang: Great. Just on your payout ratio, you've effectively held it from FY26. I just wanted to confirm, is this going to be the new normal going forward, given the net lease capital drag is lower? Would you provide a bit of a range? Would it be 95% or 97%? Just any comments there would be great.

Solomon Zhang: Great. Just on your payout ratio, you've effectively held it from FY 2026. I just wanted to confirm, is this going to be the new normal going forward, given the net lease capital drag is lower? Would you provide a bit of a range? Would it be 95% or 97%? Just any comments there would be great.

Speaker #3: And would you provide a bit of a range? Would it be 95 or 97? Just any comments there would be great.

Speaker #2: No, I think we're set to more than appropriate, and you're exactly right, Solomon—except there is no capital drag from the net lease portfolio, pure net effective rent growth, and 100% payout to investors, which is incredibly invaluable, particularly given we're heading into a period where 82% of our portfolio has got its rent review in the net lease sector off this upcoming September CPI print, which is going to be really strong.

Ben Ellis: No, I think where it sits is more than appropriate, and you're exactly right, Solomon, except there is no capital drag from the net lease portfolio. Pure net effective rent growth and 100% payout to investors, which is incredibly invaluable, particularly given we're heading into a period where 82% of our portfolio's got its rent review in the net lease sector off this upcoming September CPI print, which is going to be really strong.

Speaker #3: Thanks, Ben.

Solomon Zhang: Thanks, Ben.

Speaker #2: Thank you.

Ben Ellis: Thank you.

Speaker #1: Please stand by for our next question. Our next question comes from the line of Howard Penny with Citi. Your line is open.

Operator: Please stand by for our next question. Our next question comes from the line of Howard Penny with Citi. Your line is open.

Speaker #4: Thank you, Ben and Joanna. Just on portfolio curation, just on the trend moving forward—we've obviously seen a move from 39% net lease retail in '25 up to 53%.

Howard Penny: Thank you, Ben and JoAnne. Just on portfolio curation, just the trend moving forward, we've seen it obviously move from 39% net lease retail in 2025 up to 53%. Just thinking about the incremental new dollar invested from a CQR perspective, could we expect that to continue to be pushing a higher ratio of net lease retail by any chance?

Howard Penny: Thank you, Ben and Joanne. Just on portfolio curation, just the trend moving forward, we've seen it obviously move from 39% net lease retail in 2025 up to 53%. Just thinking about the incremental new dollar invested from a CQR perspective, could we expect that to continue to be pushing a higher ratio of net lease retail by any chance?

Speaker #4: Just thinking about the incremental new dollar invested from a CQR perspective, could we expect that to continue to be pushing a higher ratio of net lease retail, by any chance?

Speaker #2: Yeah, thanks, Howard. Look, we're currently set at about 49% by income in that net lease space. And as I just said in the previous question, that's really valuable.

Ben Ellis: Yeah, thanks, Howard. Look, we currently sit at about 49% by income in that net lease space, and as I just said in the previous question, that's really valuable considering the CPI print that's about to come through, driving really strong EPS growth without any capital drag for CQR investors. In terms of incremental dollar, look, the reality is we will always invest money where it's best to grow accretion for CQR unit holders. We are diversified, and we're able to look at multiple sources of property transactions underpinned by the Charter Hall transaction team that we get access to. The opportunity is there across all of them, and there's no set parameter which way we'd look. It's all about accretion to earnings.

Speaker #2: You're considering the CPI print that's about to come through, driving really strong EPS growth without any capital drag for CQR investors. In terms of incremental dollars, look, the reality is we will always invest money where it's best to grow accretion for CQR unitholders.

Speaker #2: And we are diversified, and we're able to look at multiple sources of property transactions, underpinned by the Charter Hall transaction team that we get access to.

Speaker #2: So the opportunity is there across all of them, and there's no set parameter for which way we'd look. It's all about accretion to earnings.

Speaker #4: Great, thank you very much. One of the themes we're picking up from the retail side is that, in pubs in particular, there seems to be a potential opportunity for the owners of these pubs to sell down the property side and create value for their own investors.

Howard Penny: Great. Thank you very much. One of the themes we're picking up from the retail side is, in pubs in particular, there seems to be a potential opportunity for the owners of these pubs to sell down the property side and create value for their own investors. That's been an area where CQR has invested previously. Are you seeing opportunities in that space at the moment?

Speaker #4: That's been an area where CQR has invested previously. Are you seeing opportunities in that space at the moment?

Speaker #2: Look, we've obviously been very defined in anything we do in the net lease space, Howard. We always partner with best-in-class covenants and quality retailers.

Ben Ellis: Look, we've obviously been very defined in anything we do in the net lease space, Howard. We always partner with best-in-class governance and quality of retailer. Like you said, there's been a very successful transition in respect to sale and leaseback portfolios. As we said in the presentation today, CQR has benefited from 35% growth in invested equity in sale and leaseback transactions with major retailers across the service station and the hotel investment sector. That's been absolutely market-leading. We see that sale and leaseback opportunity as a huge plus for CQR, given Charter Hall is the market leader by a long way in sale and leaseback transactions.

Speaker #2: And like you said, there’s been a very successful transition with respect to selling leaseback portfolios. As we mentioned in the presentation today, CQR has benefited from 35% growth in invested equity in sale and leaseback transactions with major retailers across both the service station and hotel investment sectors.

Speaker #2: That's been absolutely market-leading. So, we see that sale and leaseback opportunity as a huge plus for CQR, given Charter Hall is the market leader by a long way in sale and leaseback transactions.

Speaker #4: Well, thank you, Ben, and congrats on a great set of results.

Howard Penny: Well, thank you, Ben, congrats on a great set of results.

Speaker #2: Thanks, Howard.

Ben Ellis: Thanks, Howard.

Speaker #1: Our next question comes from the line of Simon Chan with Morgan Stanley. Your line is open.

Operator: Our next question comes from the line of Simon Chan with Morgan Stanley. Your line is open.

Speaker #5: Oh, good day, Ben. Good day, Joe. Hey Ben, a good result in the supermarkets.

Simon Chan: Oh, good day, Ben. Good day, Joe. Hey, Ben, a good result in the supermarkets.

Speaker #2: Thank you.

Ben Ellis: Thank you.

Speaker #5: In particular, regarding the turnover rent, I just want to know what portion of the turnover rent that you're collecting now is within touching distance of being capitalized into the base rent and therefore will become more secure going forward?

Simon Chan: In particularly the turnover rent part, I just want to know, what portion of the turnover rent that you're collecting now are within touching distance of being capitalized into the base rent and therefore will become more secure going forward?

Speaker #2: Look, to be honest, Simon, it's a rolling five-year basket. So it all comes down to when the lease expiries are. It's not quite linear, but you could assume that effectively one-fifth every year over five years capitalizes into base rent.

Ben Ellis: Look, to be honest, Simon, it's a rolling five-year basket. It all comes down to when the lease expires are. It's not quite lineal, but you could assume that effectively one-fifth every five years capitalizes into base rent.

Speaker #5: Okay, that's clear. Hey, in your closing remarks before, you talked about how retail supply is at a 30-year low, yada, yada, yada.

Simon Chan: Okay. That's clear. Hey, in your closing remarks before, you talked about how retail supply is 30-year low, yada, yada.

Speaker #2: Yep.

Ben Ellis: Yep.

Speaker #5: How has that manifested in your lease negotiations, I guess, in particular with the anchor tenants? Can you swing your weight around a little bit more now going forward in that whole gross lease/net lease argument, or do you think we're actually not there yet?

Simon Chan: How has that manifested in your lease negotiations, I guess, in particular with the anchor tenants? Can you swing your weight around a little bit more now going forward, in that whole gross lease, net lease argument, or you think we're actually not there yet?

Speaker #2: Look, I think it's a topic that's going to be discussed a lot. Obviously, we've been pretty active in renegotiating our anchor tenant lease over a long period of time, away from those gross leases that you see in other portfolios.

Ben Ellis: Look, I think, it's a topic that's going to be discussed a lot. Obviously, we've been pretty active in renegotiating our anchor tenant lease over a long period of time away from those gross leases. You see how the portfolio is. My view on that, Simon, is that as time goes on and the scarcity sites increase and lease expiries come around, there'll be more discussions to be had with the major tenants about improving the recovery rate and growth rate for investors in the sector. I see that as a potential tailwind.

Speaker #2: My view on that, Simon, is that as time goes on and the scarcity of sites increases and lease expiries come around, there will be more discussions to be had with the major tenants about improving the recovery rate and gross rate for investors in the sector.

Speaker #2: So, I see that as a potential tailwind.

Speaker #5: Cool. And my last one is just on any specialty tenants' performance. Perhaps you could explain this to me. Occupancy costs stepped down a bit, which is great.

Simon Chan: Cool. My last one is just on the specialty tenants' performance. Perhaps you could explain this to me. The occupancy cost stepped down a bit, which is great. I think it was 11.5% at the H1, it's now 10.9%.

Speaker #5: I think it was 11.5% at the half year, now 10.9%. But your MAT growth is only 3%. Average rental increase is 4%. Leasing spread is almost 5%.

Ben Ellis: Yep.

Simon Chan: Your MAT growth is only 3%. Average rental increase is 4%. Leasing spreads is almost 5%. Just mathematically, it's come down 50, 60 basis points. It's just a bit funny.

Speaker #5: Just mathematically, it's come down 50, 60 bps—just a bit funny.

Speaker #2: It's just compositional, too. It depends on what has come in and out of the portfolio over the periods.

Ben Ellis: It's just compositional too. It depends on what has come in and out of the portfolio over the periods.

Speaker #5: Okay. So it's not a like-for-like comp.

Simon Chan: Okay, it's not a like-for-like comp, the specialty cost number.

Speaker #2: Well, it is like-for-like, but every time you get through a period where something comes into the like-for-like basket or comes out of it, it obviously comes through that number.

Ben Ellis: Well, it is like-for-like, every time you get through a period where something comes into the like-for-like basket or comes out of it obviously comes through that number. The reality is, it's a snapshot point in time. The simple fact is we have got a more productive portfolio. It's a record sales density and occupancy costs forever has sat around that sort of high 10s, low 11s number, nothing's going to change. It just shows the sustainability of this portfolio to capture rent growth as and when it comes through. As you touched on earlier, the scarcity of supply is not just a discussion for anchor tenants. It's going to be a massive discussion for specialty retailers seeking out high-quality locations that trade at these sort of levels. We see that as another tailwind.

Speaker #2: But the reality is, it's a snapshot point in time. The simple fact is, we have got a more productive portfolio. It's a record sales density.

Speaker #2: And occupancy costs have always sat around that sort of high 10s, low 11s number, and nothing's going to change. It just shows the sustainability of this portfolio to capture rent growth as and when it comes through.

Speaker #2: And as you touched on earlier, the scarcity of supplies is not just a discussion for anchor tenants; it's going to be a massive discussion, especially for retailers seeking out high-quality locations that trade at these sort of levels.

Speaker #2: So we see that as another tailwind.

Speaker #5: That's great. Thanks, Ben.

Simon Chan: That's great. Thanks, Ben.

Speaker #2: All right. Thank you.

Ben Ellis: No worries. Thank you.

Speaker #1: Our next question comes from the line of Tom Bordeaux with Jordan. Your line is open.

Operator: Our next question comes from the line of Tom Bodor with Jarden. Your line is open.

Speaker #6: Good morning, Ben, Joe. Thanks for your time this morning. Just one from me. On this September CPI print, which you've sort of mentioned a couple of times and how it's going to be quite positive for valuations and the like.

Tom Bodor: Morning, Ben, Jo. Thanks for your time this morning. Just one from me on this September CPI print, which you've sort of mentioned a couple of times and how it's going to be quite positive for vals and the like.

Tom Bodor: Morning, Ben, Joanne. Thanks for your time this morning. Just one from me on this September CPI print, which you've sort of mentioned a couple of times and how it's going to be quite positive for vals and the like.

Ben Ellis: Yeah.

Tom Bodor: If I look at your convenience portfolio, cap rates that are fairly tight, sort of 4.78 for bp, 4.89 Viva Energy, 4.92 for Endeavour, EG too. The 10-year bond yield's at 4.97. I'd just be interested. Appreciate the rent growth will be strong, but how are you thinking about cap rates in light of the 10-year being more elevated more recently?

Speaker #6: If I look at your convenience portfolio, you've got cap rates that are fairly tight—sort of 4.78% for BP, 4.89% for Ampol, 4.92% for Endeavour, and LWIP2.

Speaker #6: And the 10-year bond yield is at 4.97%. So I'd just be interested—while I appreciate that rent growth will be strong, how are you thinking about cap rates in light of the 10-year being more elevated more recently?

Speaker #2: Sales evidence drives valuations. And current sales evidence through all the net lease sector shows that, if anything, our cap rates are on the high side, to be frank. Now, we've actually demonstrated over the six-year period that the net lease portfolio has had the most resilient cap rates over that whole period.

Ben Ellis: Sales evidence drives valuations, and current sales evidence through all the net lease sector shows that, if anything, our cap rate's from the high side, to be frank. Now, we've actually demonstrated over the 6-year period that that net lease portfolio has had the most resilient cap rates over that whole period. You can see that in the slide. Yet we've generated nearly 40% valuation growth across net lease because there's no CapEx, there's absolute rent growth through inflation, and I think that that's a very strong and compelling factor. Private investment market, which is the major investor in these type of assets, look at the underlying risk associated with an asset.

Ben Ellis: Sales evidence drives valuations, and current sales evidence through all the net lease sector shows that, if anything, our cap rate's from the high side, to be frank. Now, we've actually demonstrated over the six-year period that that net lease portfolio has had the most resilient cap rates over that whole period. You can see that in the slide. Yet we've generated nearly 40% valuation growth across net lease because there's no CapEx, there's absolute rent growth through inflation, and I think that that's a very strong and compelling factor. Private investment market, which is the major investor in these type of assets, look at the underlying risk associated with an asset.

Speaker #2: You can see that in the slide. Yet we've generated nearly 40% valuation growth across net lease because there's no capex, there's absolute rent growth through inflation, and I think that's a very strong and compelling factor.

Speaker #2: And the private investment market, which is the major investor in these types of assets, looks at the underlying risk associated with an asset. They look at the rent growth, and our net lease portfolio is right up the alley for all those people.

Ben Ellis: They look at the rent growth and our net lease portfolio's right up the alley for all those people, and that will continue to drive interest and valuation growth, beyond just, obviously, rent growth that's going to come through with the September CPI print.

Speaker #2: And that will continue to drive interest and valuation growth, beyond just, obviously, the rent growth that's going to come through with the September CPI print.

Speaker #6: Yep. Okay. Thanks for that. And then I guess the flip side of high inflation is the debt cost part of the P&L. I'd just be interested in your thoughts around how you're thinking about managing that big step down and hedging into FY28.

Tom Bodor: Yep. Okay. Thanks for that. I guess the flip side of a high inflation print is the debt cost part of the P&L.

Ben Ellis: Sure.

Tom Bodor: Just be interested in your thoughts around how you're thinking about managing that big step down and hedging into FY28.

Speaker #2: Yeah, we've always managed it, Tom. I think we have this discussion every time we meet, in that we are very prudent and diligent in the way we go about putting in place hedging.

Ben Ellis: Yeah. We've always managed it, Tom. I think we have this discussion every time we meet, in that we are very prudent and diligent in the way we go about putting in place hedging. We've always had a view that we monitor the market effectively on a daily basis, looking for opportunities. If you roll back and looked at our hedging profile three years ago, four years ago, it would look almost exactly the same. We've always been able to manage it in a prudent way to capitalize on the rent growth generated by our portfolio. Ultimately, we've just upgraded earnings during FY26 to 4% OEPS growth, and we've now got it not less than 3.5% OEPS growth. The sector generally is in a fantastic position with a lot of rent growth coming through and a lot of investor demand for this product.

Ben Ellis: Yeah. We've always managed it, Tom. I think we have this discussion every time we meet, in that we are very prudent and diligent in the way we go about putting in place hedging. We've always had a view that we monitor the market effectively on a daily basis, looking for opportunities. If you roll back and looked at our hedging profile three years ago, four years ago, it would look almost exactly the same. We've always been able to manage it in a prudent way to capitalize on the rent growth generated by our portfolio. Ultimately, we've just upgraded earnings during FY 2026 to 4% OEPS growth, and we've now got it not less than 3.5% OEPS growth. The sector generally is in a fantastic position with a lot of rent growth coming through and a lot of investor demand for this product.

Speaker #2: We've always had a view that we monitor the market effectively on a daily basis, looking for opportunities. And if you roll back and look at our hedging profile three years ago, four years ago, it would look almost exactly the same.

Speaker #2: We've always been able to manage it in a prudent way to capitalize on the rent growth generated by our portfolio, and ultimately, we've just upgraded earnings during FY26 to 4% LEPS growth, and we've now got it not less than 3.5% LEPS growth.

Speaker #2: And the sector generally is in a fantastic position with a lot of rent growth coming through and a lot of invested capital for this product.

Speaker #2: So, very comfortable with where we're going, and very comfortable that, with the biggest transaction team and the biggest treasury team in the country actively working on this, we'll be well positioned.

Ben Ellis: Very comfortable with where we're going and very comfortable that with the biggest transaction team, the biggest treasury team in the country actively working on this, we'll be well-positioned.

Tom Bodor: Great. Thanks very much.

Speaker #2: No worries.

Ben Ellis: No worries.

Speaker #1: Will you stand by for our next question? Our next question comes from the line of David Pobucky with Macquarie Group. Your line is open.

Operator: Please stand by for our next question. Our next question comes from the line of David Pobucky with Macquarie Group. Your line is open.

Speaker #7: Good morning, Ben, Joe, and team. Thanks for taking my question. I just wanted to go back to one of the prior questions regarding the REIT strategy, given you’ve now reached your target portfolio mix.

David Pobucky: Good morning, Ben, Joe, and team. Thanks for taking my questions. I just wanted to go back to one of the prior questions in terms of the REIT's strategy, given you've now reached your target portfolio mix. Just curious to understand how you think about the next leg of value creation over the next three to five years. Will it be driven primarily by organic earnings growth, further capital cycling, increasing exposure to partnerships like CCRF? Just keen to dig into that a little bit more.

David Pobucky: Good morning, Ben, Joanne, and team. Thanks for taking my questions. I just wanted to go back to one of the prior questions in terms of the REIT's strategy, given you've now reached your target portfolio mix. Just curious to understand how you think about the next leg of value creation over the next three to five years. Will it be driven primarily by organic earnings growth, further capital cycling, increasing exposure to partnerships like CCRF? Just keen to dig into that a little bit more.

Speaker #7: So, just curious to understand how you think about the next leg of value creation over the next three to five years. Will it be driven primarily by organic earnings growth, further capital recycling, or increasing exposure to partnerships like CCRF?

Speaker #7: I'm just keen to dig into that a little bit more.

Speaker #2: I think we've been on a long journey, David, with regards to recycling and curating our portfolio to have an asset base that will capture the most rent growth in the subsector of convenience retail.

Ben Ellis: I think we've been on a long journey, David, about recycling and curating our portfolio to have an asset base that will capture the most rent growth in the subsector of convenience retail. We will categorically benefit from the growth in the sector through whether it's inflation in the net lease portfolios and lack of CapEx, whether it's the demand for space in high-quality shopping center locations, as evident by our record results in respect of retention, sales growth, et cetera. For us, having the biggest platform in the country, AUD 18 billion, 169 people across the country driving that, I think the organic growth outlook is really strong. Clearly, being part of the broader Charter Hall platform, as and when opportunities come up, CQR gets the benefit of looking at these and having the potential to invest in them subject to accretion and capacity.

Speaker #2: We will categorically benefit from the growth in the sector, whether it's inflation, the net lease portfolios and lack of capex, or the demand for space in high-quality shopping center locations, as evident by our record results and respective retention, sales growth, etc.

Speaker #2: So for us, having the biggest platform in the country—$18 billion, 169 people across the country driving that—I think the organic growth outlook is really strong.

Speaker #2: And clearly, being part of the broader Charter Hall platform, as and when opportunities come up, CQI gets the benefit of looking at these and having the potential to invest in them, subject to accretion and capacity.

Speaker #2: So there’s no one hard or fast rule, but I think, once again, the fact we’ve been able to demonstrate incredibly strong NTA growth and all the value we’ve created in equity from the net lease portfolio—our OEPS guidance last year and this year—just actually demonstrates that the organic growth in this portfolio is strong.

Ben Ellis: There's no one hard or fast rule, but I think once again, the fact we've been able to demonstrate incredibly strong NTA growth and all the value we've created in equity from the net lease portfolio, our OEPS guidance last year and this year, it just actually demonstrates that the organic growth in this portfolio is strong, the capacity to continue to access fantastic deals is strong. I think that we will continue to look at all opportunities to try and grow the highest income and earnings growth from the convenience retail sector for our investors.

Speaker #2: The capacity to continue to access fantastic deals is strong, and I think that we will continue to look at all opportunities to try and grow the highest income and earnings growth from the convenience retail sector for our investors.

Speaker #7: Thank you. Just the second one from me, just on CCRF. How should we be thinking about the earnings and the NTA opportunity for CQR from the fund reaching its target scale?

David Pobucky: Thank you. Just a second one from me, just on CCRF. How should we be thinking about the earnings and the NTA opportunity for CQR from the fund reaching its target scale?

Speaker #2: I don't think the fund has a target scale. I think the demand for the sector is huge. And I've said it before: I've never seen more investor demand, both domestically and globally, for the convenience retail sector.

Ben Ellis: I don't think the fund has a target scale. I think the demand for the sector is huge, I've said it before, I've never seen more investor demand both domestically and globally for the convenience retail sector. That's because you get very, very high effective rent growth. Look, the reality is as CCRF scales up and it utilizes available debt capacity to do so, then you're going to see earnings accretion for CQR. I think we're very fortunate with our stake in CCRF, I think we're looking forward to seeing that continue to grow and drive earnings accretion for CQR unit holders.

Speaker #2: And that's because you get very, very high effective rent growth. So, look, the reality is, as CCRF scales up and it utilizes available debt capacity to do so, then you're going to see earnings accretion for CQR.

Speaker #2: So, I think we're very fortunate with our stake in CCRF, and I think we're looking forward to seeing that continue to grow and drive earnings accretion for CQR unitholders.

Speaker #7: Thank you. And just the last one—just on the balance sheet. Pro forma, viewing at 30.9%. Just your view on that level and the capacity for growth going forward.

David Pobucky: Thank you. Just the last one. Just on the balance sheet, pro forma gearing at 30.9%, just your view on that level, and the capacity for growth going forward. Thank you.

Speaker #7: Thank you.

Speaker #2: Yeah, no, look, I think it's fantastic where we sit. And in reality, as we've talked about, I actually foresee continued strong valuation growth coming through, if only just through the strong income growth we're going to generate.

Ben Ellis: Yeah, no, look, I think it's fantastic where we sit. In reality, as we've talked about, I actually foresee continued strong valuation growth coming through, if only just through the strong income growth we're going to generate. Obviously, as and when opportunities come up, yeah, there is capacity to invest in them to drive accretion for CQR unitholders. It'll be case by case and opportunity by opportunity.

Speaker #2: And obviously, as and when opportunities come up, the risk capacity is there to invest in them to drive accretion for CQR unitholders. But it'll be case by case and opportunity by opportunity.

Speaker #7: Thanks, Ben. Appreciate your answers.

Murray Connellan: Thanks, Ben. Appreciate your answers.

Speaker #2: Thanks.

Ben Ellis: Thanks.

Speaker #1: Please stand by for our next question. Our next question comes from the line of Richard Jones with J.P. Morgan. Your line is open.

Operator: Please stand by for our next question.

Operator: Please stand by for our next question. Our next question comes from the line of Richard Jones with JPMorgan. Your line is open.

Ben Ellis: Also for the shop.

Operator: Our next question comes from the line of Richard Jones with JPMorgan. Your line is open.

Speaker #8: Oh, good night, Ben. Just a follow-up to the question. CCRF, it still looks like there’s minimal gearing in the fund, and it actually looks like there’s been almost no acquisitions in the fund in the second half.

Richard Jones: Good day, Ben. Just a follow-up to the question on CCRF. It looks still like there's minimal gearing in the fund, and it actually looks like there's been almost no acquisitions in the fund in H2, and your divestments look like they've been delayed a little bit to go into next financial year. Are you able to just talk about what your current cash return is on your investment and how much undrawn capacity sits within the fund and how that may change your return as those funds are deployed?

Speaker #8: And your divestments look like they've been delayed a little bit to go into next financial year. Are you able to just talk about what your current cash return is on your investment and how much undrawn capacity sits within the fund, and how that may change your return as those funds are deployed?

Speaker #2: Look, you can definitely talk to David about CCRF when we get to the group results, but it has certainly scaled considerably over time. It still has significant debt capacity to continue to scale considerably.

Ben Ellis: Look, you can definitely talk to David about CCRF when we get to the group results, but it is certainly scaled considerably over the time. It still has significant debt capacity to continue to scale considerably. We obviously disclose what our net equity and share of earnings out of CCRF are in our accounts. Ultimately, as we just said before, as that utilizes its debt capacity to gear up and drive further accretion to earnings for CQR, it's going to be a tailwind.

Speaker #2: And we obviously disclose what our net equity and share of earnings out of CCRF are on our accounts. Ultimately, as we just said before, as that utilizes its debt capacity to gear up and drive further accretion to earnings for CQR, it's going to be a tailwind.

Speaker #8: Okay, just interested in your feedback around retail sales through June and July. Have you seen any noticeable slowdown? And maybe can you call out how discretionary versus non-discretionary has performed over those two months in your portfolio?

Richard Jones: Okay. Just interested in your feedback around retail sales through June and July. Have you seen any noticeable slowdown, and maybe can you call out how discretionary versus non-discretionary has performed over those two months in your portfolio?

Speaker #2: Yeah, we've seen no noticeable slowdown whatsoever. And in fact, the reality is nearly all of our sales are non-discretionary. And obviously, that sector has performed incredibly strongly, and it continues to do so.

Ben Ellis: Yeah, we've seen no noticeable slowdown whatsoever. In fact, the reality is we are nearly all of our sales are non-discretionary. Obviously that sector's performed incredibly strongly, and it continues to do so, and it will grow even more strongly as population and lack of retail supply continues to create demand. Sorry, the discretionary component is a bit softer than non-discretionary, but for us, it's tiny. You think about it, something like clothing and apparel is less than 1.5% of our total sales. It's minuscule. We will continue to focus on non-discretionary retail. We'll continue to focus on growing the sales in that sector, and we'll continue to focus on owning the best assets in that sector to maximize value from it. For us, it's very consistent, and I expect that to continue.

Speaker #2: And it will go even more strongly as population and lack of retail supply continues to create demand. The non-discretionary component is a bit softer than—sorry, the discretionary component is a bit softer than non-discretionary, but for us, it's tiny.

Speaker #2: I mean, if you think about it, something like clothing and apparel is less than one and a half percent of our total sales. It’s minuscule.

Speaker #2: So we'll continue to focus on non-discretionary retail. We'll continue to focus on growing sales in that sector, and we'll continue to focus on owning the best assets in that sector to maximize value from it.

Speaker #2: So for us, it’s very consistent, and I expect that to continue. All right, thanks.

Richard Jones: Yeah. Well, thanks, Ben.

Ben Ellis: No worries. Thanks.

Speaker #1: Please stand by for our next question. Our next question comes from the line of Mauri Connellan with Moelis Australia. Your line is open.

Operator: Please stand by for our next question. Our next question comes from the line of Murray Connellan with Moelis Australia. Your line is open.

Speaker #7: Good morning, Ben and John. Just a quick follow-up on David's question on gearing. Would be good to get your thoughts on comfort levels, I guess, where we are in the interest rate cycle?

Murray Connellan: Morning, Ben, Joanne. Just a quick follow-up on David's question on gearing, which would be good to get your thoughts on comfort levels, I guess, where we are in the interest rate cycle. Balance sheet gearing's at 31%. There's a comment in the director's report around the target gearing for shopping centers being at 30% to 40%, and the target gearing range for the convenience Our net lease portfolio at 40% to 50%.

Speaker #7: Balance sheets carrying 31%. There's a comment in the Director's Report around the target gearing for shopping centres being at 30% to 40%, and the target gearing range for the convenience net lease portfolio at 40% to 50%.

Ben Ellis: Yeah.

Murray Connellan: I was just keen to hear where you would like to see gearing go medium term. Also, do you think about this on a look-through basis as well, just in terms of the interest rate exposure, or is balance sheet going to be more the focus?

Speaker #7: I guess I was just keen to hear where you would like to see gearing go in the medium term. And then also, do you think about this on a look-through basis as well, just in terms of interest rate exposure, or is the balance sheet going to be more the focus?

Speaker #2: The balance sheet is absolutely the focus. None of our off-balance sheet debt facilities are cross-collateralized, nor do they have any recourse back to CQR's balance sheet.

Ben Ellis: Balance sheet's absolutely the focus. None of our off-balance sheet debt facilities are cross-collateralized, nor have they any recourse back to CQR's balance sheet. In terms of your first question, we're really comfortable with gearing. We think it's very appropriate, and most importantly for us, Murray, if you look at what's happening from a growth perspective in terms of value growth driven by income and also investor demand, this portfolio naturally de-levers and de-levers fast because of that incredible demand for convenience retail assets at this point in time. We're really comfortable. We don't think that there's any concern whatsoever, and more importantly, we think appropriate to have some level of higher gearing in a portfolio which is triple-net, incredibly strong covenants, got absolute rent growth through inflation-linked rental growth. There's zero maintenance and incentive obligations whatsoever. These are absolute net effective rents.

Speaker #2: In terms of your first question, we're really comfortable with gearing. We think it's very appropriate. Most importantly for us, Mauri, if you look at what's happening from a growth perspective—in terms of value growth driven by income and also investor demand—this portfolio naturally delivers, and delivers fast, because of that incredible demand for convenience retail assets at this point in time.

Speaker #2: So we're really comfortable. We don't think that there's any concern whatsoever. And more importantly, we think it's appropriate to have some level of higher gearing in a portfolio which is triple net, has incredibly strong covenants, and has absolute rent growth through inflation-linked rental growth.

Speaker #2: There are zero maintenance and incentive obligations whatsoever. These are absolute net effective rents. This number printed today is absolutely before we revalue the service station portfolio, which is 29% of CQR's total portfolio.

Ben Ellis: This number printed today is absolutely before we revalue the service station portfolio, which is 29% of CQR's total portfolio, most of which will benefit from a inflation-linked rental growth print based off September's CPI. If anything, it's going to continue to come down in line with the valuation growth.

Speaker #2: Most of which will benefit from an inflation-linked rental growth print based off September’s CPI. So, if anything, it’s going to continue to come down.

Speaker #2: In line with the valuation growth.

Speaker #7: Would you be happy to deploy here and see it go higher?

Murray Connellan: Would you be happy to deploy here and see it go higher?

Speaker #2: Look, will there be a thing on a risk-adjusted basis? We'll look at it on a case-by-case basis. It's not about would we or wouldn't we.

Ben Ellis: Look, we'll do everything on a risk-adjusted basis, and we'll look at it on a case-by-case basis. It's not about would we or wouldn't we? It's all about what is the most risk-adjusted measure for us to best allocate investment capital towards driving accretion to earnings in CQR's on and off-balance sheet investments.

Speaker #2: It's all about what is the most risk-adjusted measure for us to best allocate investment capital towards driving accretion to earnings and CQR’s on- and off-balance sheet investments.

Speaker #7: Got it. That's clear. Thanks, Ben.

Murray Connellan: Got it. That's clear. Thanks, Ben.

Speaker #2: No worries.

Ben Ellis: No worries.

Speaker #1: As a reminder, ladies and gentlemen, let's start one-on-one to ask questions. Our next question comes from the line of Winky Tan with Morningstar.

Operator: As a reminder, ladies and gentlemen, that is star 11 to ask the question. Our next question comes from the line of Yingqi Tan with Morningstar. Your line is open.

Operator: As a reminder, ladies and gentlemen, that is star one one to ask the question. Our next question comes from the line of Winky Tan with Morningstar. Your line is open.

Speaker #1: Your line is open.

Speaker #3: Hi, good morning Ben and Joe. What are the average yields for acquisitions and divestments that you've done in FY26? And just wondering if you see more opportunities to do this kind of earnings-accretive activity in the market, given your earlier comments about how currently in convenience retail and net lease retail the cap rates are pretty low right now?

Yingqi Tan: Hi. Good morning, Ben and Joe. What are the average yields for acquisitions and divestments that you have done in FY26? I am just wondering if you see more opportunities to do this kind of earnings accretive activity in the market, given your earlier comments about how currently in convenience retail and net lease retail, the cap rates is pretty low right now.

Winky Tan: Hi. Good morning, Ben and Joanne. What are the average yields for acquisitions and divestments that you have done in FY 2026? I am just wondering if you see more opportunities to do this kind of earnings accretive activity in the market, given your earlier comments about how currently in convenience retail and net lease retail, the cap rates is pretty low right now.

Speaker #8: Hi, Winky.

Ben Ellis: Hi, Winky. We have pretty well disclosed what we have bought and sold. The reality is, if you look at our divestments relative to the acquisitions, we have obviously got earnings accretion off that whole activity. That has been a feature of driving earnings growth for CQR and also we have been able to curate the portfolio beautifully towards something with higher income growth for investors. In terms of the current market, look, Charter Hall has got an absolute unique knack of being able to source opportunities that are very well bought and quite often well below market values. Where that opportunity occurs and where we can actually drive accretion to CQR unit holders, of course, we will look at it. At this point in time, we have not guided to anything, and we will just take that case by case during the course of the year.

Speaker #2: We've pretty well disclosed what we've bought and sold, but the reality is, if you look at our divestments relative to the acquisitions, we've obviously got earnings accretion off that whole activity.

Speaker #2: So that's been a feature of driving earnings growth for CQR. And also, we've been able to curate the portfolio beautifully towards something with higher income growth for investors.

Speaker #2: In terms of the current market, look, Charter Hall has got an absolute unique knack for being able to source opportunities that are very well bought and quite often well below market values.

Speaker #2: Where that opportunity occurs, and where we can actually drive accretion to CQR unitholders, of course we'll look at it. But at this point in time, we haven't got it to anything.

Speaker #2: And we'll just take that case by case during the course of the year. No worries.

Yingqi Tan: Great. Thanks.

Winky Tan: Great. Thanks.

Ben Ellis: No worries.

Speaker #3: And just curious, does your supermarket turnover include any online shopping orders that are fulfilled in the store, or is it purely just transactions that happen in the store?

Yingqi Tan: Just curious whether your supermarket turnover include any online shopping orders that are fulfilled in the store, or is it purely just transactions within that happen in the store?

Winky Tan: Just curious whether your supermarket turnover include any online shopping orders that are fulfilled in the store, or is it purely just transactions within that happen in the store?

Speaker #2: All of our supermarket leases include online sales that are transacted from the store.

Ben Ellis: All of our supermarket leases include online sales that are transacted from store.

Speaker #3: Yeah. Great. Thanks, Ben.

Yingqi Tan: Yep. Great. Thanks, Ben.

Winky Tan: Yep. Great. Thanks, Ben.

Speaker #1: Please stand by for our next question. Our next question comes from the line of Andrew Dart with Jefferies. Your line is open.

Operator: Please stand by for our next question. Our next question comes from the line of Andrew Dodds with Jefferies. Your line is open.

Speaker #8: Oh, good morning, guys. Look, a lot of it's already been sort of covered off on purchase. Just if we look at some of the metrics on the table on page nine: shopping centre NPI growth at 3% in '26 compared to 1.9% in the five years leading up to '19.

Andrew Dodds: Oh, good morning, guys. Look, a lot of it's already been sort of covered off on, but just if we look at some of the metrics on the table on page nine, shopping center NPI growth of 3% in 2026 compared to 1.9% in the five years leading up to 2019, and then just the proportion of CapEx as a percentage of total assets. Is this how you kind of think about the portfolio on a go-forward basis-

Speaker #8: And then just the proportion of capex as a percentage of total assets. I mean, is this how you kind of think about the portfolio on a go-forward basis?

Speaker #8: Or do you think that there's scope to kind of improve these numbers a bit further?

Ben Ellis: No

Ben Ellis: No.

Andrew Dodds: or do you think that there's scope to kind of improve these numbers a bit further?

Andrew Dodds: Or do you think that there's scope to kind of improve these numbers a bit further?

Speaker #2: Oh, look, I think there's always scope to improve your NPI growth; there's no doubt about that. And we've talked a lot about why that's the case, and obviously, the net lease NPI growth is based upon the prior year's combination of CPI prints before and after that sort of December period.

Ben Ellis: Oh, look, I think there's always scope to improve your NPI growth. There's no doubt about that, we've talked a lot about why that's the case. Obviously, the net lease NPI growth is based upon the prior year's combination of CPI prints before and post that December period. That will accelerate this year going forward because obviously where we're sitting at the moment, I think CPI printed last time at 3.8% and New Zealand was 4%, so that's going to be a tailwind for us. In terms of CapEx, there's a couple of things going on here. One is obviously we have a lot less assets that require CapEx. The second thing is the quality of our existing portfolio is so much better.

Speaker #2: And that will accelerate this year going forward, because obviously where we're sitting at the moment—I mean, I think the last CPI print was at 3.8%, and New Zealand was 4%.

Speaker #2: So, that's going to be a tailwind for us. In terms of capex, there are a couple of things going on here. One is, obviously, we have a lot fewer assets requiring capex.

Speaker #2: And the second thing is the quality of our existing portfolio is so much better. We have always continued to reinvest in properties in a prudent way, which means we don't have to go and spend mountains of useless capex—let's be frank—to try and just justify holding tenants in place.

Ben Ellis: We have always continued to reinvest it in properties in a prudent way, which means we don't have to go and spend mountains of useless CapEx, let's be frank, to try and just justify holding tenants in place. Our assets are in great condition, that's going to be a consistent theme going forward for us, and I think the team's done an amazing job in that regard.

Speaker #2: Our assets are in great condition, and that's going to be a consistent theme going forward for us. I think the team's done an amazing job in that regard.

Speaker #8: All right, guys. Thank you very much. That's all from me.

Andrew Dodds: All right, guys. Thank you very much. That's all from me.

Speaker #2: Thanks, Andrew.

Ben Ellis: Thanks, Andrew.

Speaker #1: Thank you. Ladies and gentlemen, at this time, I would now like to turn the call back over to Ben Ellis for closing remarks.

Operator: Thank you. Ladies and gentlemen, at this time, I would now like to turn the call back over to Ben Ellis for closing remarks.

Speaker #2: Thanks, all, for dialing in. I think it's been a great year for CQR. We're looking forward to another fantastic year in FY27. I look forward to talking to you all during the course of the next couple of days.

Ben Ellis: Thanks all for dialing in. I think it's been a great year for CQR, and we're looking forward to another fantastic year in FY27. I look forward to talking to you all during the course of the next couple of days and wish you a good day. Thank you.

Ben Ellis: Thanks all for dialing in. I think it's been a great year for CQR, and we're looking forward to another fantastic year in FY 2027. I look forward to talking to you all during the course of the next couple of days and wish you a good day. Thank you.

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