I some some concerns.
No mention of the earnings(EPS) impact of this transaction in the announcement. It looks like an EPS dilutive transaction comparing the low property yield to their higher average cost of capital (equity and debt).
With higher interest rates moving forward, are these low property yields at risk of increasing, resulting in potential capital losses for investors? Refer to the AFR p34 article today re property sector downturn.
Also, splitting the ownership across two funds also reduces CQE’s control over the assets.
Property fund managers should only buy assets if it adds value (not subtract value) to forecast unitholder returns.
In the current economic climate, one has to seriously wonder whether this transaction is really in the best interests of CQE unitholders, or in the best interests of CHC (the manager)?
What does everyone else think?
News: CQE Charter Hall Social Infrastructure Acquires A$40Mln Of Education & Healthcare Properties, page-2
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Last
$2.37 |
Change
-0.050(2.07%) |
Mkt cap ! $882.7M | |||
| Open | High | Low | Value | Volume |
| $2.48 | $2.50 | $2.37 | $1.841M | 769.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 9 | 27053 | $2.37 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.38 | 1589 | 1 |
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| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| CQE (ASX) Chart |