Charter Hall hit by $1.9bn valuation drop
Charter Hall Group has reported a net valuation decline of $1.9 billion after approximately 98% of its platform properties had been independently valued.
In the announcement made to the Australian Securities Exchange (ASX), the company said that as a result of valuations and transaction activity, together with $1.2 billion of development capex, it expected its funds under management (FUM) to stand at around $72 billion as of 30 June 2023.
Following this, the valuations of 549 properties held by its Charter Hall Long WALE REIT had also dropped by 5.8%, or $419 million, and translated into a decrease of the overall portfolio value to $6.833 billion from $7.252 billion.
Across its portfolio, long WALE Retail saw the highest drop in valuation falling $240.2 million, and was followed by office which saw valuation go down by $96 million.
Further to that, the unaudited impact of the valuations would represent an estimated decrease in the NTA per security from $6.23 at the end of last year to %5.65 and reflected a 9.3% drop.
At the same time, the valuations of the Charter Hall Social Infrastructure REIT went down by $10 million or 0.5% on prior book values and valuations of Charter Hall Retail REIT slipped 3.7% ($164 million), based on the independent valuation of 97% of its portfolio, resulting in the overall value decrease to $4,289 million.
Valuations would remain subject to audit and relevant fund board approvals.
Doh, should have used the Industry Super Fund valuers.
Simple, you just tell them what you want it valued at and Cha Ching $$$ unlisted assets only ever go up in value.
PWC used to do that for them…
Union super would never do this for its ‘unlisted’ property assets…