Charter Hall Retail Shares Uplifted After Announcing The Divestment of Two Lower Growth Assets

  • Nov 06, 2018 AEDT
  • Team Kalkine
Charter Hall Retail Shares Uplifted After Announcing The Divestment of Two Lower Growth Assets

On 6 November 2018, Charter Hall Retail REIT (ASX: CQR) announced the divestment of two of its assets for a total consideration of $76.1 million. Coomera Square, QLD and a freestanding Woolworths asset at Young, NSW are the two low growth assets in which the REIT has contracted to divest. Further, the assets were disposed at a small discount to book value with settlement forecast to occur in December 2018 for Coomera Square and February 2019 for the Young assets.  Following the release of this news, the share price of the company uplifted by 1.31 percent as on 6 November 2018.

Both the assets were sold at a small discount to book value, and the divestments are consistent with the REIT’s strategy to divest smaller assets and recycle capital into centers which are the dominant convenience-based offers in their respective catchments. 

During FY 2018, REIT settled 15 divestments of smaller assets with a total value of $309 million, averaging $23 million per asset. Since their initial acquisition, these assets delivered double-digit property returns to the Fund, with some of them having been held for over 22 years. The company also reduced its exposure to small assets in regional locations where there was limited opportunity to deliver future growth and reinvested into convenience and convenience-plus assets that dominate in the strong population growth catchments. At the end of FY 2018, REIT was having 59 convenience and convenience-plus assets, including the acquisition of Gateway Plaza in Victoria. During FY 2018, the company invested in three high-quality assets totaling $274 million and all three centers are the dominant convenience-based offers in their respective catchments and are positioned to deliver sustainable growth.

In FY18, REIT delivered operating earnings per unit growth of 0.4% to 30.51 cents which were in line with the market guidance and REIT’s distributions per unit was 28.20 cents which were an increase from 28.10 cents in FY 2017. The net tangible assets per security increased by 2.2% to $4.22 in FY 2018 due to the increase in rental revenue and tightening cap rates. As per the Charter Hall Retail REIT’s FY 2019 guidance, the operating earnings are expected to grow by 2.0% per security over FY 2018, and the distribution payout range is likely to be between 90% to 95% of operating earnings.

In the last six months, the share price of the company increased by 3.70 percent as at 5 November 2018, traded at a PE level of 11.620. CQR’s shares traded at $4.225 with a market capitalization of circa $1.69 billion as on 6 November 2018 (AEST 02:01 PM).


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK