Citi expects troubled Charter Hall to benefit from Arena REIT's revaluation

Arena REIT No 1

09/06/2022 22:53

** Citi Research says Charter Hall Group  CHC  faces
potential longer term headwinds amid rising interest rate
environment, but peer Arena REIT's  ARF.AX  revaluation
announcement to lend upside support
    ** Australia's ARF on Thursday said its portfolio valuation
program is expected to result in net revaluation uplift of A$102
mln ($72.51 mln) for the six-month period ending June 30
    ** "While ARF's portfolio is fairly specialised with limited
direct exposure across remaining sector, we see this as a
positive readthrough for the entire REITs sector" - Citi
    ** CHC stock down nearly 40% this year, as of last close;
Citi says CHC has underperformed its sector by ~20%
    ** Holds CHC rating at "buy" and PT unchanged at A$12.35
    ** Five of nine analysts rate CHC "buy" or higher, three
"hold" and one "sell" or lower; their median PT is A$17.05 –
Refinitiv data
    

($1 = 1.4067 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com;))