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Charter Hall Group CHC

Rating as of

Morningstar’s Analysis

Valuation
Currency in AUD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Charter Hall Continues to Deliver; Fair Value Estimate Up 23% to AUD 14, Shares Still Expensive.

Alexander Prineas Equity Analyst

Analyst Note

| Alexander Prineas |

Another strong result from narrow-moat Charter Hall Group prompts us to review our outlook, increasing our fair value estimate 23% to AUD 14.00 (up from 11.40). We also now view the company’s capital allocation rating as Exemplary, from Standard. This is due to the compelling opportunities in the group’s development pipeline.

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Company Profile

Business Description

Charter Hall Group’s main activity is managing property funds for retail and institutional investors, and listed REITs such as Charter Hall Retail REIT, Charter Hall Social Infrastructure REIT, and Charter Hall Long WALE REIT. More than two thirds of earnings come from funds management and we expect this proportion to increase over time. Strong returns generated substantial performance fees over the last five years, which we expect to moderate due to lower property market returns in future, however regular base fees and intermittent performance fees should continue. Charter Hall co-invests in its funds, so a portion of its earnings come from rent, as well as development fees and development profits on projects that it manages.

Contact
No.1 Martin Place, Level 20
Sydney, NSW, 2000, Australia
T +61 286519000
Sector Real Estate
Industry REIT - Diversified
Most Recent Earnings
Fiscal Year End Jun 30, 2022
Stock Type
Employees