CHC rallied +14.9% in January, very similar to GMG, again assuming we are correct another good move should be close at hand, the stock is currently heavy and under $13 the risk/reward becomes compelling.
We don’t see CHC turning higher until rate sentiment pivots but that could happen shortly – one to watch carefully.
CHC is the second-best-performing property stock in 2023 having already rallied +14.9% however it’s been a very tough 12 months for this specialist property investor which should come as no great surprise when we consider the impact on the sector from the surge by interest rates.
Charter Hall Group (CHC) fell 7.5% yesterday after announcing it was buying 50% of David Paradice’s Paradice Investment Management business valuing the company above $400m. The investment house was set up over 20-years ago and has evolved into one of Australia’s most respected boutique equity managers with $18bn of assets under management.
Companies reporting today on MM’s radar include:
Ampol (ALD) 1H21 Results: Expectations for 1H21 NPAT of 171m & Dividend of $0.433
Charter Hall Group (CHC) FY21 Results: Funds From Operations (FFO) per share of $0.58, NPAT $269m & DPS of $0.38. FY22 expectations are for strong profit growth (+24%) to $333m
Chorus (CNU) FY21 Results: Expectations for revenue of $947m, EBITDA of $645m, NPAT of $50.84m (down ~2% on FY20), EPS of $0.111, FY Dividend $0.25. Market currently pricing NPAT for FY22 of $49.25m, flat on FY21.
CHC invests across the real estate spectrum from office to retail and social infrastructure operating a number of unlisted funds such as CLW, CQR and CQE. As a group it has ~$45bn under management across 1300 properties clearly offering the investor significant diversification.
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