CHC
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.
Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.
This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.
Please note that past performance is not a reliable indicator of future performance.
General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.
Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.