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

G8 Education

04/05/2026 22:27

** Morningstar maintains its fair value estimate on Australian landlord Charter Hall Social Infrastructure REIT CQE.AX 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, 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

** As of last close, YTD, CQE is down 15.9%, while GEM has plunged 75.4%.

(Reporting by Kumar Tanishk in Bengaluru)

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