Australia's Charter Hall Social rises after Morningstar expects 'little spillover' from G8 troubles

G8 Education

05/05/2026 05:46

Updates

** Shares of Australia's Charter Hall Social Infrastructure REIT CQE.AX rise as much as 1.2% to A$2.62, their biggest intraday pct gain since April 24

** Morningstar maintains its fair value estimate of the landlord at A$3.70

** Expects "little spillover" from G8 Education's GEM.AX center closures

** Says the market "underappreciates Charter Hall Social's income resilience and defensiveness, with near-full occupancy and long leases"

** G8 Education GEM.AX, the country's largest for-profit childcare provider, is closing 40 centres, but only five are leased by CQE, representing just 1% of rental income - Morningstar

** Notes the REIT's portfolio is diversified, with 65% of income from childcare and the rest from essential services like healthcare and others

** GEM down as much as 8.8% to A$0.155

** YTD, CQE is down 15.6%, and GEM has plunged 77.2%

(Reporting by Kumar Tanishk and Aamir Sheik Khalid in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk; Aamir.SheikKhalid@thomsonreuters.com))