Charter Hall Retail REIT has released details of the valuations for 59% of the portfolio revealing that cap rates for the portfolio have remained virtually unchanged over the 6 month period.
Whilst cap rates remain static at 6.02%, overall valuations, inclusive of forecast capex, resulted in a like-for-like portfolio valuation increase of $44 million for the period from 30 June 2020 to 31 December 2020.
CQR’s shopping centre convenience retail portfolio valuation increase over the period was $33 million, with the like-for-like cap rate moving from 6.20% to 6.21%.
The REIT’s long WALE retail portfolio valuation increase over the period was $11 million, with the like for-like cap rate compressing from 5.14% to 5.07%. COVID-19 related tenant support continues to diminish month on month.
Charter Hall separate the retail portfolio into 28 Convenience Centres (with a single supermarket) and 23 Convenience Plus Centres (with more than one supermarkets and or a discount department store). The later are typically defined as Sub Regional Centres, however Charter Hall are clearly attempting to have these seen as highly convenience focused assets.
A breakdown of the valuations is expected in the half yearly report.
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