CQR – Credit Suisse rates the stock as Neutral

Charter Hall Retail has acquired an interest in a $1.7bn portfolio of convenience retail assets leased to BP Australia. The investment is via a $137m equity interest.

The company will divest five non-core retail assets to fund the investment, for a total consideration of $117m. It also intends to divest a further $100m in non-core assets to maintain gearing in the middle of its target range of 30-40%.

FY20 operating earnings guidance has also been upgraded to growth of 2.2%. The distribution pay-out ratio forecast is 90-95% of operating earnings.

Credit Suisse maintains a Neutral rating and increases the target to $4.27 from $4.23.

Sector: Real Estate.

Target price is $4.27.Current Price is $4.59. Difference: ($0.32) – (brackets indicate current price is over target). If CQR meets the Credit Suisse target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →