Aussie REIT Charter Hall's recent stake buy to boost income - Jefferies

Charter Hall Retail REIT

03/04/2023 22:53

** Charter Hall Retail REIT's  CQR.AX  acquisition of an 18%
equity interest in Long WALE Investment Partnership 2 (LWIP2)
will improve CQR's income growth, says Jefferies
    ** Acquisition, however, to increase fund's complexity and
investment in minority equity-investment, says brokerage
    ** Jefferies cuts PT on CQR to A$4.46 from A$4.51; retains
"buy" rating
    ** Brokerage estimates FY23 operating earnings per security
(OEPS) to fall 0.1% compared with CQR's expectation of 1% growth
    ** Jefferies sees deal to be 0.06% accretive to company's
FY23 OEPS
    ** The equity investment in LWIP increases CQR's exposure to
triple net leases with improved income diversification,
resilience - Jefferies
    ** Five of 11 analysts rate the stock "buy" or higher, 4
"hold", 2 "sell" or lower; median PT is A$4.30 – Refinitiv
    ** Stock down 0.3% so far this year, as of last close
    


 (Reporting by Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@thomsonreuters.com;))