This article is from the Australian Property Journal archive
THE Charter Hall Retail REIT has reported a 1.1% increase in the value of its portfolio as capitalisations rates ease.
The value of CQR’s portfolio increased 1.1% over the June 2010 book value to $2.1 billion reflecting a decrease in the weighted average capitalisation rate from 8.15% to 8.07%, resulting in a 0.9% increase in asset value, with the remaining 0.2% movement being driven by growth in the portfolio’s overall net income.
Revaluations were undertaken on all properties in the REIT’s portfolio, with 128 or 94% of the total number of properties externally revalued over the last 12 months and 74 properties, or 39% of the portfolio by value, revalued over the last six months to 30 June 2010.
CEO Steven Sewell said market conditions are positive in Australia, particularly for grocery anchored retail, and remain in line with expectations across all regions in which the trust is invested.
“With the majority of the portfolio’s assets now Australian neighbourhood or sub regional shopping centres, the most recent valuation has resulted in a solid uplift to the REIT’s net asset backing.
“We firmly believe the best opportunity for long term income and capital growth for investors exists in the Australian retail property market. We seek to deliver on strategies in the near term aimed at closing the gap between the REIT’s current unit price and its net asset backing,” he added.
The value of the trust’s Australian assets rose 3.6% or $40 million to $1.14 billion as cap rates eased from 8.01% to 7.81%.
The value of New Zealand assets rose 3.2% or $2.5 million to $80.5 million and in Europe values rose 0.1% or $600,000 to $416.1 million.
However, the CQR’s US portfolio fell 4.7% or $20.3 million to $415 million as cap rates increased from 8.43% to 8.62%.
Sewell said the positive gains will result in an increase in net asset value of $22.8 million, which represents a net asset backing increase of approximately 1.5 cents per unit.
Australian Property Journal
