Charter Hall Long WALE REIT’s December-half earnings broadly met Macquarie’s forecasts and management reiterated guidance for 4.5%-plus growth.
The broker cites strong operational metrics, thanks to transactions and expects the balance sheet may offer opportunities for capital management should the REIT’s share price trade below net tangible assets (NTA).
Charter Hall offers an FY23 forecast dividend yield and is trading at a 17% discount to NTA.
Macquarie hopes Charter Hall can pull forward ALE’s 2028 rent reviews given inefficiency in the portfolio. EPS forecasts are steady for FY22; and rise 1% for FY23 and 4% for FY24.
Outperform rating retained. Target price eases to $5.23 from $5.31.
Sector: Real Estate.
Target price is $5.23.Current Price is $4.91. Difference: $0.32 – (brackets indicate current price is over target). If CLW meets the Macquarie target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
