Ladies and gentlemen, thank you for standing by and welcome to the Charter Hall Social Infrastructure REIT 2025 Full-Year Results Briefing. At this time, all participants are in listen-only mode. 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 and one on your telephone keypad and wait for your name to be announced. Please note that this conference is being recorded today, Monday, 11th of August, 2025. I would now like to hand the conference over to our host today, Mr. Travis Butcher, Fund Manager. Thank you, sir. Please go ahead. Good morning, everyone, and welcome to CQE 's results presentation for the full year ended 30 June 2025. Presenting with me today is Erin Kent, Head of Social Infrastructure Finance. I'd like to formally introduce Erin, having joined Charter Hall in July of this year, and we welcome Erin to the team. 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 four, key highlights for FY 2025 were as follows. CQE delivered operating earnings at AUD 15.3 per unit, and distributions paid during the year were AUD 15.2 per unit, consistent with the upgraded FY 2025 distribution guidance provided in February. NTA per unit as at 30 June 2025 was AUD 3.86 per unit, which is up 1% from 30 June 2024, demonstrating the resilience of CQE 's social infrastructure properties. In July 2025, CQE successfully refinanced its debt facilities, which included the introduction of Asian term loan facilities, and this has now seen CQE 's debt maturity extending to a very strong 4.9 years. CQE has continued to be active with its accretive portfolio curation during FY 2025 and post 30 June, with acquisitions totaling AUD 144 million at an average yield of 6.7%. Key acquisitions have included the pathology laboratory in Perth, totaling AUD 47 million, and secondly in July, we've added an interest in the Western Sydney University campus in Parramatta, totaling AUD 68 million. These acquisitions are consistent with CQE 's strategy of adding properties to the portfolio leased to high-quality tenants that are providing essential services to the community. During the year, we also contracted to divest 30 early learning properties for a total consideration of AUD 151 million. Pleasingly, these were completed at a premium of 8.3% to their previous carrying value and an average yield of 4.4%. CQE delivered strong rental growth during the year, with like-for-like weighted average rent reviews being achieved at 4.2%. A key component of this rental growth was the completion of 69 early learning market rent reviews during the year, resulting in a 10.5% uplift in rents, which continued to demonstrate the under-rented nature of CQE 's early learning portfolio. CQE 's portfolio is very well positioned, with strong property fundamentals, with a WALE of 11.6 years and 100% occupancy. We're also pleased to announce today that, based on information currently available and barring any unforeseen events, the FY 2026 forecast distribution guidance is AUD 16.8 per unit, an increase of 10.5% from FY 2025. Moving to slide five and further details on CQE 's acquisitions. In July 2025, CQE acquired a 22.5% interest in the Western Sydney University campus in Parramatta. This modern, purpose-built university campus was completed in 2017 and provides essential higher education learning through specialized technology-enabled learning studios, unique study spaces, and other student amenities, including a library and student services hub. The campus is located in the heart of Parramatta CBD, providing strong transport links. The property features approximately 26,500 sq m of NLA, with 80% of this educational uses. The asset has extremely strong property fundamentals, with a long lease of 16.6 years remaining. A well-capitalized tenant was also a co-owner of the asset, and importantly, annual rental reviews are 3.75%. The 22.5% interest in the property was acquired for AUD 68.4 million on an initial yield of 6.2%. Moving to slide six and further details on the other acquisitions completed by CQE. As announced at the February half-year results, CQE acquired a specialized pathology laboratory located in Osborne Park, Western Australia. This facility, significantly refurbished by the tenant in 2014, is situated in a prominent mixed-use business park, just eight kilometers northwest of Perth CBD. Settlement occurred in January 2025 for a total consideration of AUD 47 million, reflecting an attractive 6.4% initial yield. The property is leased to Clinipath Pathology, who is a 100% owned subsidiary of ASX-listed Sonic Healthcare Group, with a market cap exceeding AUD 13 billion. We're also attracted to the large strategic land holding in the property, with the 1.5 ha site presenting significant future development and expansion potential. Secondly, in July 2025, CQE upweighted its interest in the Geoscience Australia facility by 8.3% to now own 33.3% of the asset. Total consideration for the increased interest was AUD 28.7 million, reflecting an 8.4% initial yield. This property was purpose-built and subsequently refurbished in 2017 and includes specialized laboratories leased to an Australian federal government agency. Geoscience Australia provides key information, advice, and services across geological and geographical areas that are critical to shape a strong economy and sustainable environment for Australia. Moving to slide seven and CQE's strategy. CQE's strategy remains unchanged, which is to provide investors with resilient income and capital growth through exposure to a diversified social infrastructure portfolio. We do this by focusing on enhancing income sustainability and resilience of the assets we own, targeting ongoing capital growth, and undertaking continual portfolio curation. We see the attributes of social infrastructure assets, such as strategic locations, long leases, predictable income growth, and sectors providing essential services as all critical components to CQE delivering on its strategy. Turning to slide eight and the key investment features of CQE. CQE has a diversified portfolio of 328 properties in Australia across various social infrastructure subsectors, providing essential services to the community. In addition to the long- WALE and 100% occupancy, CQE benefits from 74% of its leases being triple net leases, where the tenant is responsible for all property outgoings and capital expenditure. CQE has a strong financial position with a resilient property portfolio and valuations benefiting from long leases and predictable annual growth. The early learning property market, which comprises 69% of CQE's portfolio by income, continues to allow for active portfolio curation. Total national early learning property transactions in the last 12 months exceeded AUD 750 million, highlighting the ongoing demand for these assets. As a result of the successful debt refinance, CQE's weighted average debt maturity sits at a very healthy 4.9 years, and balance sheet gearing sits at the lower end of our gearing range of 30% - 40% at 30.5%, positioning CQE well for future growth opportunities. CQE offers attractive growth prospects through a combination of 67% of lease income subject to annual fixed escalators of an average of 3% and the balance being inflation linked and market rent reviews. Income subject to market reviews amounts to 28% over the next three years, which will provide future rental growth for CQE due to the current under-renting across the portfolio. I'd like now to hand over to Erin, who will provide an overview of the financial performance of CQE. Thanks, Travis, and good morning to everyone on the call. A summary of CQE's earnings for the full year can be found on slide 10. In FY 2025, CQE achieved like-for-like net property income growth of 3.3%, which has been marginally offset by the impact of net divestment activity, which occurred throughout the current and prior reporting periods. Finance costs have increased due to CQE's higher weighted average all-in cost of debt over FY 2025 of 5.3%, compared to 4.5% in FY 2024, which was partly offset by lower average debt drawn compared to the prior reporting period. This has resulted in CQE delivering operating earnings of AUD 57 million, which equates to AUD 15.3 per unit. Distribution per unit of AUD 15.2 is in line with our upgraded guidance provided to the market at our FY 2025 half-year result and represents a distribution payout ratio of 99%. Turning to slide 11, which provides a summary of CQE's balance sheet position at 30 June 2025. During the year, CQE delivered on its social infrastructure portfolio diversification strategy. New assets totaling AUD 53.7 million were acquired during the year, the most significant being the AUD 47 million pathology lab in Perth, which Travis spoke to earlier. In addition, CQE has settled the divestment of 29 early learning centers for a total consideration of AUD 137.6 million. The divestment of a further three early learning centers, equating to AUD 21 million, are due to complete by December 2025. 100% of CQE's portfolio was independently valued throughout FY 2025, resulting in a total portfolio net valuation uplift of AUD 28 million or 1.4%, reflecting the resilient nature of CQE's portfolio. CQE's NTA per unit is AUD 3.86 at 30 June 2025, representing a AUD 0.04 or 1% increase on 30 June 2024, driven by portfolio revaluations offset partly by the mark-to-market of interest rate derivatives. In February 2025, CQE announced the initiation of an on-market unit buyback program of up to AUD 25 million, of which AUD 7 million was completed in the second half of FY 2025. The buyback period is for 12 months and remains open until February 2026. Turning to slide 12, which provides a summary of CQE's capital management position. In July 2025, CQE has completed the successful refinance of its entire debt platform, adding diversification, scale, improved pricing, longer tenor, and increased covenant headroom. CQE has entered the Asian term loan market via AUD 450 million of syndicated facilities split evenly across a five and six-year term. All balance sheet bilateral facilities were also refinanced. As at 30 June 2025, CQE's weighted average cost of debt was 5% based upon 62% balance sheet hedging at an average fixed rate of 3%. The reduction in CQE's cost of debt is primarily driven by lower floating rates combined with improved pricing as a result of the refinancing initiatives. CQE's weighted average debt maturity was extended by two years to 4.9 years, with no facilities now expiring until FY 2030. CQE's debt platform was also upsized by AUD 50 million to AUD 900 million, providing further funding flexibility. CQE's balance sheet gearing was 30.5% at 30 June 2025, increasing to approximately 33% on a pro forma basis, including the impact of the acquisitions completed in July post-balance date, as well as the divestment of assets contracted to complete by December 2025. CQE's gearing remains at the lower end of the target 30%- 40% range and provides considerable headroom to gearing covenants. In July 2025, CQE executed additional hedging, resulting in an increased hedge percentage for the FY 2026 guidance year of 72%, while maintaining a fixed hedged rate of 3%. CQE's weighted average cost of debt and hedge profile has it well positioned for sustainable future earnings growth. I will now hand back to Travis to provide a portfolio update. Thanks, Erin. On slide 14, we summarize CQE's portfolio. CQE's portfolio has a property passing yield of 5.4%, an 11.6-year WALE, and 100% occupancy. Weighted average like-for-like rental growth for the year to 30 June 2025 was very strong at 4.2%, which primarily reflects the completion of 69 market rent reviews in the year, resulting in a 10.5% uplift in rent on these properties. Market rent reviews accounting for 28% of CQE's income are due in the next three years, providing the potential for further increases in rent. As previously mentioned, accretive portfolio curation continues to be a key focus for CQE during the year to drive earnings and distribution growth. Acquisitions contracted during the year and including the transactions completed in July amounted to AUD 144 million, an acquisition yield of 6.7%. Consistent with our strategy, all of these properties are leased to sector-leading corporate and government tenants, providing essential services to the community. During the year, CQE contracted to dispose of 30 early learning properties for a total consideration of AUD 151 million, at an average yield of 4.4% and an 8.3% premium to previous carrying value, demonstrating the superior quality of CQE's portfolio. Divestment of properties with lower yields, with multi-holding land tax leakage, continues to be a focus, with the yield received by CQE on these divested assets being an average 4.2%. Moving to slide 15, CQE's portfolio WALE remains strong at 11.6 years. Lease expirations in the next five years remain low at 3.5% of CQE's total lease income, with 1.4% of these expirations in FY 2030. The long- WALE highlights the importance of the property and the lease term to the tenant's operations, and also the option notice period required under the leases, which typically ranges between three and five years for early learning properties. It's also worth noting that only 1.9% of lease income is true expirations, where there are no tenant options. Turning to slide 16, while CQE has a long- WALE of 11.6 years, there are opportunities throughout the lease terms for market rent reviews, and this slide provides further detail of the market rent review outcomes and future rental growth profile. During the year, 69 market rent reviews were completed, with an average 10.5% increase achieved across these properties. This was split between a 17.7% uplift achieved on the 19 uncapped reviews and a 6.7% uplift achieved on the 50 capped reviews. These reviews translate to an additional AUD 1.6 million of rental income on an annualized basis. In relation to the 50 capped reviews, the majority of these were completed in the second half, and the increase of 6.7% was close to the maximum increase, noting that the caps were a mixture of 5% and 7.5% increases. Over the next three years, 28% of CQE 's rental income, or 149 properties, are subject to market reviews. These reviews are all early learning properties and will allow CQE to capture rental growth from under-renting across the portfolio. Market rents are set with reference to operator's fees in that particular location. Operator fees have historically seen strong growth, and based on our tenant data to March 2025, it grew by 8.6% year-on-year. This further highlights the positive market rent growth in CQE 's portfolio, which is supported by CQE 's net rent to revenue calculation, which currently sits at 9.7%, clearly below market parameters. The graph on the right of this page sets out CQE 's rent review profile for the next three years. As you can see for FY 2026, 67% of income is subject to fixed reviews, which average 3%. 23% linked to CPI or inflation, with the remaining 10% subject to market reviews. The high proportion of fixed reviews will provide CQE a favorable organic rental growth position as inflation or CPI eases with the latest annual print at 2.1%. We've set out the market review profile for the next three years, noting that CQE 's ability to extract full market rents is partially restricted by a 7.5% cap in the majority of market rent reviews. However, these reviews occur every five years, providing regular opportunities to capture this under-renting. Turning now to slide 17 and ESG. We remain focused on implementing sustainability initiatives across our portfolio and consider ESG as a driver of long-term value for the fund. Key items we want to focus on are the social impact of CQE 's portfolio. CQE 's early learning portfolio plays an important role in Australia's education system, with over 28,000 licensed places available across the 318 early learning properties on a daily basis. Aside from the critical labor supply mechanism, the benefits of early learning have proven to be critical to setting children up to be well-functioning and positive contributors to society. The early learning sector is currently facing some challenging events, and we support policy and regulation changes to enhance the safety of children attending early learning centers in Australia. Whilst we do not have operational control of these assets, we will continue to support our tenant customers during this period. Finally, we continue this successful partnership with major tenant customer Goodstart and their Early Learning Fund that provides families and children facing hardship with fee relief for early learning and care. Charter Hall's partnership with the Early Learning Fund, which enables 20 children to access early learning, continues to drive meaningful change, ensuring more children get the best start they deserve. Moving to slide 19 and the outlook and guidance, we continue to see social infrastructure as a growing asset class with long-term opportunities for future investment for CQE. Key thematics driving this are both a growing and aging population, which will require significant social infrastructure for investment. We're announcing today that, based on information currently available and barring any unforeseen events, the FY 2026 forecast distribution guidance is AUD 16.8 per unit, an increase of 10.5% from FY 2025. This has been driven by a combination of positive yield spread from the portfolio curation, positive market rent review outcomes, and CQE 's cost of debt reducing through both the successful debt refinancing and lower forecast variable rates. 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. Thank you. As a reminder, to ask a question, please press star one and one on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star one and one again. Please stand by as we compile the Q&A roster. First question comes from Ben Brayshaw from Barrenjoey. Please go ahead. Hi, Travis. Congrats on this result. I was wondering if you could just comment on the asset sales in terms of the weighted average disposal yield of the low fours. It does seem strong. In particular, just how have those assets been rented relative to market? I can see that the reversion in terms of your rent review profile to a market rent has declined marginally over the last six months. Yeah, thanks, Ben. I think when we're selling assets and we're really focusing on those lower yielding assets, we're focused on Queensland, where there's the multi-holding land tax. There's really strong demand still for those assets at that price point. There's probably, like, of the 30, there's probably three or four in there that we're passing under market. Generally, it's just that liquidity. You look, typically, the average. The pace of the rollout of the buyback, just in the context of stock still at a material discount to its NTA? Yeah, Ben, we've done, we announced that in February of this year. We've done AUD 7 million out of the AUD 25 million. We've got till February next year, that's the period that's open till. I think for us, it's all just weighing up what's the best use of CQE's capital. Obviously, we announced the acquisitions that was at a yield of 6.7%. We're focused on earnings and distribution growth. It really comes down to what's the best use of capital from an accretion point of view. Great. On the refinance of the facility, I noticed that you've adjusted the covenants, both the LVR and the ICR, to increase the headroom. Could you perhaps just discuss the facility itself, the process that you ran through, and the outcome there around the increased flexibility? Yeah, Ben, we're coming up to a point that we needed to, if we hadn't refinanced, we would have been sub three years at June. We looked at our debt book, obviously working closely with the Charter Hall Treasury team. The debt size now is at a point we're looking for some diversification. Charter Hall has had a lot of success with the Asian term market, term line market through a number of other funds. We went over there, presented to a number of financiers in that market along with our current financiers. We're really, really happy with the result we ended up with, obviously better covenants, longer maturity, better pricing, and really having that diversification. I think it was a really strong outcome for CQE. Excellent. Thanks for your time. Thank you. Just a moment for our next question, please. Next, we have Solomon Zhang from JP Morgan. Please go ahead. Morning, Travis and Erin, and thanks for your time. Just on the AUD 900 million debt refinance, you mentioned some improved margins. Could you just talk to where the average margins are today? Off the back of the refinancing initiatives, we're now sitting at about 150 basis points versus 170 basis points previously. Great. Maybe just coming back to the buyback question. I guess you paused in late March 2025. I understand that there's a weighing up acquisitions versus buybacks, but where it stands today, you're still trading at a 20% discount. Do you think it's more attractive or less attractive than acquiring, I guess, acquisitions at a 6% or 6.5% cap? I think, Solomon, we've got that, obviously, the flexibility between now and February next year, and we'll obviously consider that. What is the best use of CQE's capital? Obviously, we'll look, if we can, from a divestment point of view, if we can still divest assets sub 5%. That all comes into the mix in terms of, obviously, we're very focused on earnings and distribution growth. Obviously, we announced the upgrade today. I think that'll be part of our considerations, re the buyback, re-deployment into other acquisitions, and depending on what yield they're at. It all comes into the mix. Maybe just a final one. Do you think institutions are priced effectively out of the childcare market, given how tight some of these assets are trading out? That's always been one of the challenges with the childcare market, to get institutional capital to get the assets. They are smaller assets, and there's not many portfolios for sale. It is very challenging for institutional capital to get set in early learning and childcare. Great, thanks for that. Appreciate it. Thank you. As a reminder, to ask a question, please press star one and one on your telephone. Next, we have Murray Connellan from Moelis Australia. Please go ahead. Hi, Travis. Congrats on a good result. I was wondering whether you could just, I guess, unpack. I know you sort of touched on the liquidity in the childcare space and how tightly some of those assets are transacting in parts of the country. I was wondering whether you could maybe just comment on what your thing would be looking at going into FY 2026 and the sorts of funding sources. Yeah, thanks, Murray. In terms of curation, I think it's really dependent on the yield. Like if you could say, well, 4.4% is what we got in FY 2025. If we can get a similar amount in FY 2026, that's at a level, I think it makes sense for us, just given where our cost of debt is and also where we're trading at. It's all about for us to focus is to close that gap to NTA, and how do we do that through earnings and distribution growth? That's a key focus for us. In terms of acquisitions, obviously we announced the additional two today in addition to the Clinipath one. They're what we're looking to add to the portfolio. You look at the key fundamentals of those assets, modern building, strong covenants. You take the 1 PSQ, the university campus, that's got fixed 3.75% escalators every year. That's great from an income and distribution growth point of view. If we can add those sort of style assets to the funds, I think it makes a lot of sense. If we can dispose of smaller childcare centers in that sort of mid 4% range, it all adds up from that sort of earnings and distribution growth. Thanks. We're just hoping you could touch on some of the assumptions going into the FY 2026 guidance number. Would it be fair to say that your expected payout ratio would be more or less in line with historical? Yeah, correct. We're not providing earnings guidance, but yeah, you're right, Murray, in terms of that sort of, we're sitting at 98%- 100% historically, and that's a good basis for you to use for next year. Got it. Thank you. Thanks, Murray. Thank you. I see no further questions at this time. I will now pass back to Mr. Travis for closing remarks. Thank you, everyone, for your participation today and ongoing interest in CQE. We look forward to meeting a number of you over the coming weeks. Thank you.