This article is from the Australian Property Journal archive
CHARTER Hall Group (ASX:CHC) six monthly valuation process has resulted in a net valuation uplift of circa $210 million, which should see group property FUM at circa $71 billion at the year’s close.
The uplift as at 31 December 2022, saw 97% of the group’s platform properties independently valued, with results still subject to audit and relevant fund board approvals.
With a platform total valuation uplift of 0.5%, the long WALE retail sector led increases with a 2.7% rise, followed by industrial and logistics at 1.1%, social infrastructure at 0.7% and shopping centre retail at 0.1%, while the office sector saw a 0.5% downgrade.
The $10 million unaudited impact represents uplift to the value of Charter Hall’s balance sheet property investments, or 2 cents per security of Net Tangible Assets.
Charter Hall Long WALE REIT (ASX: CLW) saw 93% of its portfolio by gross asset value independently valued, resulting in a $64.6 million, or 0.9% net uplift on prior book values.
That’s an increase in CLW overall property value from $7,151 million to $7,215 million over the six-month period to 31 December 2022.
With the CLW portfolio’s weighted average cap rate expanding 5bps from 4.36% to 4.41%.
This reflects an unaudited impact on CLW’s estimated pro-forma June 2022 NTA per security from $6.17 to $6.26, up 9 cents per security or 1.4%.
CLW reaffirmed a FY23 Operating EPS guidance of 28.0 cents and distribution per security guidance of 28.0 cents.
While Charter Hall Retail REIT (ASX:CQR) had 98% of the portfolio independently valued, resulting in a $108 million or 2.5% increase on prior book values.
This resulted in an overall portfolio value has increase from $4,299 million to $4,433 million, with portfolio average cap rate has up 9bps from 5.20% to 5.29%.
For an unaudited impact of an increase in the estimated NTA per security from $4.91 to $5.02 and an 11 cents per unit or 2.2% increase on the June 2022 NTA.
CQR also declared a distribution for the period ending 31 December 2022 of 13.0 cents per unit.
With FY23 earnings per unit expected to be at minimum 28.7 cents per unit, for at least 1% growth over FY22 earnings per unit.
While FY23 distributions per unit are expected to be at least 25.8 cents per unit, for growth of 5.3% over FY22 distributions per unit.
Meanwhile, Charter Hall Social Infrastructure REIT (ASX: CQE) had 100% of its portfolio by gross asset value independently valued, resulting in a $16.3 million or 0.8% uplift on the prior book values.
With the average passing yield on these assets up 6 bps from 4.70% to 4.76%.
The unaudited impact of the valuations should up CQE’s pro-forma June 2022 NTA per unit from $4.08 to $4.122 , a 4 cents per unit or 1.0% increase.
