Jefferies trims PT on Aussie REIT Charter Hall, unhappy on revised valuations

Charter Hall Retail REIT

03/11/2023 01:27

** Analysts at Jefferies trim PT on Australia's Charter Hall
Retail REIT  CQR.AX  to A$3.50 from A$3.80 on co's Australian
portfolio capitalization rate moving to 4.77% vs 10-yr estimates
of 4.92% 
    ** CQR reaffirms FY24 operating earnings of around 27.4 AU
cents per unit
    ** Brokerage says CQR struggling with cap rates, expects
valuations to come under pressure on Dec. 31 
    ** The broker sees around 25 basis points of cap rate
expansion, if 10-yr cap rate remains above 4.8% & assets are
revalued 'independent' in Dec.
    ** Expects CQR's non-discretionary focused portfolio as
strong with supermarket moving annual total  growth of 4-5% in
Q1 FY24
    ** Estimates decline in values totalling A$511.2 mln due to
75 bps of cap rate expansion on co's Convenience SC & Long WALE
portfolios in June 
    ** Stock up ~17.8% YTD as of last close

 (Reporting by Roshan Thomas in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))