Charter Hall has been a disastrous manager of this REIT.
They have managed to get it from trading basically inline with ARF on a Price / NTA basis when it was managed by Folkestone (pre CHC acquisiton of the manager in late 2018) to now a MASSIVE discount. ARF now trades +12% to NTA. CQE -32%!
The reason is obvious. Charter Hall keeps shovelling questionable assets into CQE to grow AUM at any cost and holders have woken up to their shennanigans and are voting with their feet.
Now the balance sheet is fully leveraged and CQE owns some assets that are simply not social infrastructure. E.g. Mater which is just an office building leased to a not-for-profit hospital operator as their head office. I would absolutely not be surprised if come the end of the lease in 2031 Mater will just vacate, move into the next empty building they find for sale in or near the Brisbane CBD and sale and leaseback the new asset with the benefit of a long term lease:
Mater buys office, flips it with a leaseback to CQE for $122.5m - realestatesource
Charter Hall needs to admit defeat and seek a scrip based merger with ARF for CQE shareholders pronto because there is no way on earth they will ever be able to raise equity within cooee of NTA in this vehicle.
They have deservedly lost credibility with the market by treating CQE as a stuffee fund.
Ann: June 2023 Valuation Update and June Quarter Distribution, page-6
Add CQE (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$2.39 |
Change
-0.010(0.42%) |
Mkt cap ! $890.2M | |||
| Open | High | Low | Value | Volume |
| $2.39 | $2.43 | $2.37 | $1.435M | 597.5K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 9214 | $2.38 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.39 | 56572 | 1 |
View Market Depth
| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| CQE (ASX) Chart |