Good morning, everyone, and welcome to CQE's results presentation for the full year ended 30 June 2026. Presenting with me today is Erin Kent, Head of Diversified Finance.

Before starting today's presentation, I would like to commence with an acknowledgement 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 and contribution to country. Turning now to slide 4, CQE delivered a strong FY26 result underpinned by accretive portfolio curation and strong organic rental growth.

The FY26 result demonstrates the benefits of CQE strategy. Earnings have grown strongly, the portfolio is higher quality and more diversified, and the income profile is supported by long leases, high occupancy, and embedded rental growth.

Operating earnings for the full year were 17.3 cents per unit, a 13.1% increase on FY25. Distributions paid for the year were 17 cents per unit, an increase of 11.8% from FY25.

CQE continue to be active with accretive portfolio curation during FY26, with acquisitions totaling $291.9 million and an average yield of 6.2%. The key acquisitions during the year were the 50% interest in the Western Sydney University campus in Parramatta and a 25% interest in the Sonic Healthcare pathology lab in Brisbane.

These are both high-quality social infrastructure properties and great additions to CQE's portfolio, and I'll talk further to these transactions in the following slides. During FY26, CQE contracted 32 early learning property divestments for $136.7 million at an average yield of 4.4% and a 4.1% premium to book value.

NTA per unit increased to $3.93, representing a 1.8% increase from 30 June 2025. CQE also delivered strong organic rental growth, with like-for-like rental growth of 3.8%, which included market rent review outcomes of 6.4% across 91 completed market reviews.

We're pleased to announce today that based on information currently available, and barring any unforeseen events, FY27 earnings guidance is no less than 18.1 cents per unit, and distribution guidance is 18 cents per unit. This represents EPU growth of at least 4.6% and DPU growth of 5.9% from FY26.

Turning to slide 5, which sets out CQE strategy, CQE strategy remains unchanged, which is to provide investors with resilient income and capital growth from a social infrastructure property portfolio. We see the favorable attributes of social infrastructure property being critical to CQE delivering on its strategy.

These include the provision of essential services, which provide a lower correlation to the economy than other property classes, and strategic locations of the properties, resulting in long leases, high occupancy, and tenant customer retention. From a growth perspective, CQE benefits from predictable income growth from the contracted annual rental increases included in the leases.

Additionally, continued positive industry and demographic tailwinds, such as population growth and aging population, will continue to provide CQE with further growth opportunities. We execute this strategy through three core pillars: continued portfolio curation, active asset management, and prudent capital management.

Moving to slide 6, which shows the transformation of CQE's portfolio resulting from the broadened social infrastructure strategy. The targeted portfolio curation strategy has achieved two main outcomes.

Firstly, as demonstrated in the transactions undertaken since June 2022, there has been a positive yield spread of 1.8%, which has made a large contribution to the growth of CQE's earnings and distributions. Over this period, CQE has acquired 11 properties totaling $534 million at an average yield of 6.2%.

This has been primarily funded through the divestment of 86 early learning properties totaling $369 million at an average yield of 4.4%. We continue to see future liquidity options available in the early learning property market, which has had average national sales of approximately $800 million over the last two years.

Secondly, portfolio curation has improved the quality and diversification of CQE's portfolio and tenant customers. As you can see from the logos on the right of this slide, CQE's tenant customers now include multiple high-quality covenants, including governments and market-leading operators in their sectors.

Income from non-early learning assets has been upweighted to 39% of CQE's portfolio, up from 4% in June 2019, resulting in a more diversified CQE portfolio with stronger property fundamentals and growth potential. Turning to slide 7, which provides a snapshot of CQE's diversified social infrastructure portfolio, which has seen growth of 9.6% following the acquisition of the pathology laboratory and university campus during the year.

CQE's portfolio is valued at $2.3 billion across the 295 properties, and is diversified across early learning, life sciences and health, higher education, and government services. The portfolio has a stable weighted average capitalization rate of 5.5%, high occupancy of 99.7%, and a strong 11.4-year WALE.

73% of the portfolio is located in metropolitan areas, consistent with Australia's population growth. This will support long-term land value and alternative use potential across CQE's portfolio, which comprises over 96 hectares of land.

Moving to slide 8 and CQE's acquisition of a 25% interest in the pathology lab at Bowen Hills in Brisbane, which occurred in June 2026. The property is a world-class integrated pathology lab fully leased to Sonic Healthcare, which is an ASX 50 company with a market capitalization of over $10 billion.

It serves as Sonic's central laboratory for Queensland and parts of New South Wales and the Northern Territory, supporting a network of over 450 pathology collection centers. The property comprises high-quality specialized fit-out, diagnostic offices, and logistic facilities designed to manage high sample volumes.

The property is secured by a 20-year triple net lease with a further 30 years of options and annual CPI-linked rent reviews capped at 3.5%. CQE's 25% interest was acquired for $111.2 million on a 5.6% property yield.

Turning to slide 9 and CQE's acquisition of a 50% interest in the Western Sydney University campus in Parramatta, which was completed in the first half. The campus is fully leased to Western Sydney University and represents a modern, purpose-built, vertical university campus in the heart of Parramatta CBD.

The asset provides critical education infrastructure, benefiting from strong transport connectivity and access to a broad range of civic, health, and commercial amenities. The campus is secured by a long-term lease of over 16 years, with further options totaling 15 years, and annual rent reviews of 3.75%.

CQE's acquisition totaled $152 million on an average yield of 6.5%. Both of these acquisitions are consistent with the strategy of upweighting the quality of CQE's portfolio, resulting in an improvement in income quality, rental growth, and WALE.

I would like to now hand over to Erin, who will provide an overview of CQE's financial performance. 04:12.000 --> 00:06:05.000 Aaron Kent (Head of Diversified Finance):

Thank you, Travis, and good morning to everyone on the call. A summary of CQE's earnings for FY26 can be found on slide 11.

During the year, CQE achieved like-for-like net property income growth of 4.2%, supported by strong underlying rent reviews across both the early learning and social infrastructure portfolios. When combined with accretive net portfolio curation, overall total net property income was up 10% compared to FY25.

Finance costs have increased due to higher average debt drawn across the year to fund net investment activity. This has resulted in CQE delivering operating earnings of $64.2 million, equating to 17.3 cents per unit, representing growth of 13.1% on FY25.

This result is ahead of CQE's upgraded guidance provided to the market in February of 17.2 cents per unit. Distributions for the year were 17 cents per unit, delivering distribution growth of 11.8% on FY25, equating to a payout ratio of 98%.

Turning to slide 12, which provides a summary of CQE's balance sheet position at 30 June 2026. During FY26, CQE added $234.5 million of new acquisitions to the balance sheet, including interests in Western Sydney University campus, Sonic Healthcare pathology lab, and an additional investment in the Geoscience facility.

CQE also settled $137.8 million of early learning property divestments, with a further five contracted centers totaling $19.8 million expected to settle by November 2026. 100% of the portfolio was independently valued during FY26, resulting in a positive net valuation outcome of $19.2 million, or 1%.

NTA per unit increased to $3.93 at 30 June 2026, representing a 1.8% increase from 30 June 2025. Moving to slide 13, which provides a summary of CQE's capital management position.

Balance sheet gearing remains below the midpoint of CQE's 30 to 40% target gearing range. CQE has a facility limit of $992 million and debt drawn of $898 million, including CQE's share of joint venture secured debt facilities.

At 30 June 2026, CQE's weighted average cost of debt was 5.2%. Looking forward, CQE remains highly hedged, providing earnings certainty and the pathway to deliver sustainable earnings growth.

CQE is 73% hedged on average across FY27 at a fixed rate of 3.3%. Hedging coverage across FY28 has also increased to 50%.

CQE's weighted average debt maturity is 3.8 years, with approximately 50% sourced from the Asian term loan market and no facilities expiring until June 2029. I will now hand back to Travis to provide a portfolio update.

06:05.000 --> 00:08:18.000 Travis Butcher (Fund Manager):

Thanks, Erin. Slide 15 shows the benefit of CQE's portfolio curation strategy, with a broader tenant base, greater sector diversification, and stronger income resilience.

The portfolio is now supported by a more diverse mix of tenant customers, with 25% of CQE's income now being generated from government and university tenants. This improved tenant mix is complemented by strong lease structures, with 67% of leases structured as triple net and 73% of income from metropolitan locations.

Moving to slide 16, CQE's portfolio WALE remains strong at 11.4 years. Only 4.3% of lease income expires within the next five years, reducing to 2.4% when excluding leases with further options.

This low near-term expiry profile highlights the defensive nature of CQE's income and the importance of the portfolio to tenant customer operations. For early learning properties, typical notice periods range between three and five years from expiry, providing CQE with early visibility on tenant intentions and future leasing outcomes.

Turning to slide 17, which provides further detail on CQE's rent review profile. During FY26, CQE completed 91 market rent reviews, achieving average uplift of 6.4%, or approximately $1.1 million of additional rent.

This includes 59 FY26 reviews and 32 FY27 reviews completed early. Of these 91 reviews, 84 were capped at typically 7.5%.

Looking forward, CQE has 54 market rent reviews occurring through to FY29, representing approximately 14% of total income. Based on tenant-provided data as at 31 March 2026, average daily fees increased by 8.3% over the last 12 months, while net rent-to-revenue for operators remains at 9.7% and below market parameters.

This is important in the current operating environment, as it demonstrates that rent remains within sustainable parameters for operators. Turning now to slide 18, which summarizes CQE's FY26 sustainability initiatives.

We remain focused on integrating sustainability across the portfolio and view ESG as an important driver of long-term value for CQE, our tenant customers, and the communities our assets serve. A key highlight of the year was achieving Australia's first early learning Green Star Performance version 2 rating, with a 4 Star Green Star rating representing best practice in operations.

This was delivered in partnership with our tenant customer, and provides a platform to explore further sustainability opportunities across the portfolio. More broadly, CQE continue to support social outcomes, with approximately 25,000 early learning places being available on a daily basis at our properties, and an extension of our partnership with Goodstart's Early Learning Fund.

Turning to slide 20, the outlook and guidance slide. CQE remains focused on executing its strategy to actively manage a diversified social infrastructure portfolio that delivers essential community services.

We are pleased to announce today, based on information currently available and barring any unforeseen events, FY27 operating earnings per unit guidance of no less than 18.1 cents per unit, and distribution per unit guidance of 18 cents per unit. This represents EPU growth of at least 4.6% and DPU growth of 5.9% from FY26.

With a high-quality long-WALE portfolio, strong organic rental growth, prudent capital management, and continued demand for social infrastructure, CQE is well-positioned to deliver resilient income growth into FY27. That concludes the formal component of our presentation.

I'll now hand back to the operator and open the line for your questions. Thank you.

08:18.000 --> 00:08:52.000 Operator:

Morning, Travis and team. I was wondering whether you could give us an update on G8, and whether there's been any further, I guess developments or discussions around the re-leasing, and, I guess pending vacancy of those centers.

09:12.000 --> 00:09:37.000 Travis Butcher (Fund Manager): No,

thanks, Murray. As you recall, we had five G8 centers that they closed.

We're currently working with them to achieve a mutually beneficial outcome. Just importantly, rent continues to be paid on all those properties.

We're confident we'll get good outcomes there, but we're still working with G8 on those. 09:37.000 --> 00:10:04.000 Murray Connellie:

Got it. Just whether there have been any similar sorts of discussions with childcare tenants or whether there's any other, I guess context you might be able to give regarding the operating health of your broader tenant base, please?

10:04.000 --> 00:10:55.000 Travis Butcher (Fund Manager):

No, I think, Murray, it's still very challenging out there. Operators are really having to work hard for their occupancy.

That's a combination of sort of cost-of-living pressures, supply issues. The operators are really working hard.

I think, yeah, it's just one of those points in the cycle where you've had that additional supply come on, combined with those sort of other pressures, plus the regulatory issues you've had in the last 12, 13 months. No, it is very challenging for them.

I think from our point of view, you look at our rents, importantly all of our rents are set at sustainable levels, still under 10% at 9.7%. We're very comfortable where that rent level sit, and we've sort of spent a lot of time making sure that our properties are leased to the stronger covenants that have multiple properties, if there is an issue at one center, they've got centers that are performing well that can basically provide that financial stability for us.

10:55.000 --> 00:11:15.000 Murray Connellie:

Thanks, Travis. Then just one last one, please.

Would you be able to give us just a bit more context around what your guidance assumes regarding your rent reviews in FY27 and then also the base interest rate that you guys get from BBSW or BBSY? 11:15.000 --> 00:12:00.000 Travis Butcher (Fund Manager):

Murray. Guidance is based on obviously just only contracted transactions, as we sit today.

In terms of the contractual rental growth, just point you to slide 17 there where you've got the compositional of the rent for FY27. As you can see there, 68% fixed, and that's typically 3%, balance of 24% at CPI, and we do have a smaller amount of market reviews coming through in '27.

The majority of those are capped at 5%, so that sort of gives you all the rental side of it. In terms of interest rates, we've got 73% hedging in place for FY27, and for the balance, we've assumed a floating rate, which currently sits at around 4.6%.

12:00.000 --> 00:12:15.000 Murray Connellie:

Got it. Thanks very much.

12:15.000 --> 00:12:28.000 Operator:

thanks, Travis. Just further to a question on G8, just the arrangements and the lease terms, how much visibility do you have on how long they'll continue to pay the rent, Travis?

Can you also call out whether there's any valuation move on those five assets? 12:51.000 --> 00:13:21.000 Travis Butcher (Fund Manager):

Thanks, Richard. In terms of average lease term across those five assets is 8 years.

They're legally obliged to pay that rent for further 8 years across those properties. We did have them valued based on them being closed.

That resulted in circa $3 million decrement to those properties. They sort of went from $25 back to $22.

13:21.000 -->

00:13:25.000 Richard Jones: That's what they carried at? 13:25.000 --> 00:13:27.000 Travis Butcher (Fund Manager):

Correct, yep.

13:27.000 --> 00:13:51.000 Richard Jones: Yeah. Thank you.

Just in terms of Sonic, just the percentage acquisition at 25, can you just talk us through why this percentage, and I guess your path to acquire more if that's of interest to you guys? 13:51.000 --> 00:14:38.000 Travis Butcher (Fund Manager): Oh,

Richard, I'd love to own 100% of it, to be honest. It's such a impressive asset, just given the property characteristics of it with 20-year triple net lease to Sonic, market cap over $10 billion.

Really comes down to our looking at the size of our fund, looking at our gearing. That was really a key determinant in the 25% just in the balance in our portfolio.

As I said, love to own 100%. If we're a $5 billion fund size, I think we'd like to have owned the whole lot.

There'll be opportunities, it's part of the unitholders' agreement, if any other unitholders are selling down the track, we have opportunities to potentially purchase down the track if it suits us at that particular time.

14:38.000 --> 00:14:59.000 Richard Jones: Thank you. One more question, just interested in any feedback you've had from valuers in relation, in particular, to the long-WALE assets given, I guess, the rise in rates and bond yields that we've seen over the last six months.

Doesn't look like that's impacted vals.

14:59.000 --> 00:15:37.000 Travis Butcher (Fund Manager): No, our cap rates have been pretty constant, Richard. I think, yeah, it's been good the resilience of the portfolio, and that's what we've really been trying to get this portfolio set up that through any economic cycles, it can be quite resilient from both an income and capital point of view.

No real change on a cap rate point of view. From even early learning, from that side of things, the transactions have slowed a little bit in the second half of FY26, but we sold three assets in June, and they sort of ranged between 3.5%, up to 5.1% for an asset in Cairns.

There's still good evidence coming through, which is sort of supporting the vals and the NTA of CQE. 15:37.000 --> 00:15:40.000 Richard Jones:

Thanks, Travis. 15:40.000 --> 00:15:41.000 Travis Butcher (Fund Manager):

Thanks, Richard. 15:41.000 --> 00:15:53.000 Operator:

Hi, Travis and Erin, thanks for your time. Few questions for me.

The first question was you've talked previously about wanting to trend towards 50% childcare and 50% other social infra. What was your approach to get there?

16:11.000 --> 00:17:01.000 Travis Butcher (Fund Manager): Oh,

I think, Carl, a good demonstration and thanks for the question is, I think slide 6, that graph that we've put there shows how we've moved from basically back in June 2019 where we're sitting at 4%, non-early learning, and now we're sort of close to 40%. We don't have a defined target.

I think for us, it's all about making sure you're getting the right assets into the portfolio. I think what we've been able to do is really improve the quality of the portfolio, improve the quality of the tenants, and do it on an accretive basis.

If we can keep on doing that, recycling out of the early learning at lower yields into better quality, other social infrastructure other than childcare, I think it makes sense for us to do because for us, it's all about earnings and distribution growth. I think today's announcement is quite positive on that front, if we can keep on doing that.

There's no sort of hard and fast rules around that target in terms of the split between the social infrastructure subsectors. It's really about the continual improvement of the portfolio.

17:01.000 --> 00:17:21.000 Karl Braganza:

Yes, and just on that strategy piece, in terms of the move away from childcare towards other social infra, is that a reflection of the softness in the operating conditions, or is that more of a relative value play? 17:21.000 --> 00:17:59.000 Travis Butcher (Fund Manager):

No, I think you look at when we actually embarked on broadening the mandate, that was back in 20 2019, obviously then childcare was different to where it is now. It was clearly a strategy back then, and that was around improving the quality of the tenant covenants, getting diversification as well, which I think as you look at the moment, it is challenging in early learning, whereas you look at something like what we added, the two assets we added this year, like the university asset, the Sonic path lab, strong-quality assets, strong tenants, good rental growth.

It really ticks all those boxes from that broaden social infrastructure mandate.

17:59.000 --> 00:18:17.000 Karl Braganza: Right, thanks for that, Karl. Just final question from me.

Would be good to know how you're thinking about the best uses of capital in terms of starting another buyback or further acquisitions considering you're trading at a roughly 35% discount to NTA?

18:17.000 --> 00:18:52.000 Travis Butcher (Fund Manager): Carl, we've we've we do look at the buyback quite often. Our view is the buyback is really a short-term outcome in terms of what you get.

I think for us for us to be able to use our capital and buy Sonic, for example, just provides the fund with significant better, medium- and long-term growth prospects, both income and capital. I think, buybacks are very short-term focused.

We're about making sure that we're continuing to grow, sensibly over time and improving the quality of the portfolio. 18:52.000 --> 00:18:58.000 Karl Braganza:

Perfect. Thanks, guys.

That's all for me. 18:58.000 --> 00:18:59.000 Travis Butcher (Fund Manager): Thanks, Karl.

18:59.000 --> 00:19:10.000 Operator:

Hi, Travis. How you going?

Just have a few questions on the ELC assets. The five G8 centers that are currently closed, can you just clarify how confident you are that they can be leased for future ELC use?

19:28.000 --> 00:20:06.000 Travis Butcher (Fund Manager): Oh,

I think, Ben, they're good-quality assets. They're in good locations.

We just need to work through the process with G8. They've recently appointed a Perth broker to really work that market over there.

I think from a quality point of view, they're good assets. We'll work with them.

Obviously they're still paying their rent on those, and there's average lease term of 8 years on them. We'll work with them.

If in an event that one has to revert to an alternate use, we'll come to an agreement with G8 to basically benefit us from that point of view. 20:06.000 --> 00:20:25.000 Ben Brayshaw: Just

to that I guess point, how confident are you that the current rent is sustainable for ELC use? Or do you see a scenario where there may need to be a reduction?

20:25.000 --> 00:21:05.000 Travis Butcher (Fund Manager):

I think where there might be some concession maybe if a new operator comes in, they'll be looking for some form of incentive, Ben, which will be funded through the outgoing tenant, G8. Across the board, our rents sort of made this point over a number of years, our rents are very sustainable.

We're sort of, on average, $3,100 a place across the whole portfolio. These ones are, Ben, that's the one thing that can really hurt you with childcare, if your rents get too high and something like this does happen, that's when you can have a risk, but these ones are all at sustainable levels.

As I said, there may need to be some sort of incentive to get a new operator in, but that would be funded by the tenant. 21:05.000 --> 00:21:18.000 Ben Brayshaw:

Can you just comment on ELC occupancy across the portfolio and any change over the last 6 to 12 months?

21:18.000 --> 00:21:56.000 Travis Butcher (Fund Manager): Ben, it's definitely, it's come off a little bit. We do see under our leases, we get all the six-month data.

The last reporting date we've got that was at the end of March, 6 months through to March '26. That was in the mid-70s.

Probably is circa 3% down on the same sort of corresponding period 6 months through to March '25. Definitely has softened, as you've seen with numerous sort of public operators and their reports, but we're very comfortable where we sit sort of in that mid-70s occupancy.

21:56.000 --> 00:22:12.000 Ben Brayshaw:

Just the childcare subsidy activity test being replaced in January, did that benefit occupancy? Did you see anything there that you're able to call out across the portfolio?

22:12.000 --> 00:22:37.000 Travis Butcher (Fund Manager):

I think, Ben, it's hard to really isolate that because you've probably had a number of other moving parts this year. The federal government came out initially and said there'd be 100,000 families that would be better off.

Hard to say whether You can't really put a number on what that actually has translated to. Obviously, it's a benefit, but, yeah, it's very hard to quantify.

22:37.000 --> 00:22:42.000 Ben Brayshaw:

Great. Thanks for your time, Travis.

22:42.000 --> 00:22:43.000 Travis Butcher (Fund Manager):

Thanks, Ben. 22:43.000 --> 00:23:02.000 Operator:

Thank you, everyone, for your participation and questions today. We look forward to meeting with many of you over the coming weeks.

Thank you.