First half results were slightly below UBS estimates. FY21 earnings guidance is for “no less than 27.3c”, slightly ahead of the broker’s forecast. Distribution guidance of at least 23.4c per security was also strong.
Charter Hall Retail has evolved beyond supermarkets to encompass convenience retail that includes long WALE investments such as service stations and distribution centres.
The broker suggests, nonetheless, other stocks may offer investors a better bond proxy and considers the more yield-focused names will underperform in 2021. Neutral rating and $3.60 target retained.
Sector: Real Estate.
Target price is $3.60.Current Price is $3.57. Difference: $0.03 – (brackets indicate current price is over target). If CQR meets the UBS target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
