Charter Hall Retail REIT (ASX:CQR) fiscal first-half results slightly exceeded expectations, which suggests a 1.6% half-on-half swing in the second half of the current fiscal year, according to a Feb. 14 note by Jarden Research.

The real estate investment trust reported fiscal first-half statutory earnings of AU$0.1869 per unit, compared with a loss of AU$0.0724 a year earlier. Analysts polled by Visible Alpha expected earnings of AU$0.044 per unit.

Total revenue and other income for the six months ended Dec. 31, 2024, was AU$193 million, compared with AU$149.5 million a year earlier. Of the total, property income was AU$95.5 million. Analysts surveyed by Visible Alpha expected net property income from wholly owned properties of AU$87.6 million.

Jarden expects the REIT to see net operating income growth and the benefits from asset recycling, including the acquisition of an AU$318 million stake at Hotel Property Investments (ASX:HPI), an AU$50.3 million shopping center in Glebe in New South Wales with a 5.9% yield, and AU$44 million in convenience retail assets.

This is expected to flow through to stronger operating earnings per share growth from fiscal year 2026 onwards, Jarden added.

Jarden has an overweight rating on Charter Hall Retail REIT and a price target of AU$3.60.

Shares of the REIT rose past 3% in recent Monday trade.