Charter Hall Retail REIT has provided FY22 EPS guidance slightly above Credit Suisse’s estimates.
The broker reports the outlook for Charter Hall is on the up as lockdowns ease in NSW and Victoria.
Supermarket sale growth grew 5.1% in the September quarter but the picture may not be so rosy for specialty stores, although most opened in NSW. Rent collection for was 90% of gross income.
Credit Suisse cannot rule out an equity raising for acquisiitons but views it as unlikely without an earnings growth story.
Charter Hall is the broker’s preferred exposure in the sector as the reopening thematic gains traction.
Target price rises to $4.28 from $4.03. Outperform rating retained.
Sector: Real Estate.
Target price is $4.28.Current Price is $4.12. Difference: $0.16 – (brackets indicate current price is over target). If CQR meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).