Charter Hall hit by $1.9bn valuation drop

Oksana Patron

16 June 2023

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.