Charter Hall Retail REIT has increased its asset valuations by 4.1%, which net of capex implies a 5.2% increase to net tangible asset value, the broker notes.
While the REIT now has limited balance sheet capacity, it is offering a 6.5% yield and is trading roughly at its NTA. The broker sees upside risk to shopping centre valuations and retains Outperform. Target rises to $4.18 from $4.04.
Sector: Real Estate.
Target price is $4.18.Current Price is $3.90. Difference: $0.28 – (brackets indicate current price is over target). If CQR meets the Macquarie target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
