File under “thinking out aloud”.

Charter Hall has been deeply unloved by the market, over the past year or so. It’s an asset manager, more so than a “rental income landlord”, and has a large office allocation.

Management point to good occupancy, and solid leasing outcomes across the office footprint, and also note the bifurcation between older, grubbier office stock, and new developments, where pre-leasing has typically been at or near 100%.

Gearing at the headstock is v low, but look-through gearing is much higher, and, will go higher still given the development pipeline.

Redemptions have been low, at least based on management commentary at the result, relative to history. Lengthy redemption windows across wholesale funds obviously helps.

Still, given Office is detonating globally, hard to see when sentiment shifts.

The headstock is on a PE of 11x forward earnings. Fund managers are volatile, and CHC is no different. But it is interesting, and those earnings…

and margins (EBITDA, shown below) are certainly appealing.

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