A taste of things to come??? Our mates over at SCA released their updated valuations yesterday clearly showing how market cap. rates are getting crunched in the retail space. OK its neighbourhood and sub-regional but it speaks volumes regarding the likelihood of a similar rerating for CDP. If memory serves me correctly the knuckleheads who did last years val. seemed to think the lockdown would last forever and a day more. Anyway the number they came up with back then was seriously bearish. Expecting a minimum jump in the val. of at least 10%. Little wonder CDP just made a 5 month high.
Heres the SCA quote: Across the like-for-like portfolio, neighbourhood centre valuations increased by $262.7m (an increase of 10.1%), while sub-regional centre valuations increased by $60.4m (an increase of 7.5%). Average cap rates for neighbourhood centres tightened by 50bps to 5.75% and average cap rates for sub regional assets tightened 43bps to 6.41%
CDP Price at posting:
$4.51 Sentiment: Buy Disclosure: Held
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