This article is from the Australian Property Journal archive
WHILE the broader commercial real estate sector has been grappling with price rediscovery and softening value, Charter Hall Retail REIT (CQR) has seen a 4.1% increase in the value of its BP fuel stations portfolio.
The 31st October external independent valuations equated to a $21.3 million increase in value, while the cap rate inched upwards from 4.72% to 4.77%.
However, CQR said, “Notwithstanding the increase in cap rate, the CPI-linked rental increase more than offset the cap rate movement resulting in an increase in the value of this portfolio”.
CQR will have the remainder of its assets revalued as part of the December valuation process.
CQR reaffirmed that based on information currently available and barring unforeseen events, it expects FY24 operating earnings to be approximately 27.4c per unit. The distribution payout ratio range is expected to be 90% to 95% of operating earnings.
