CQR 0.61% $3.25 charter hall retail reit

Potential future cap rate movements:The above cap rates are...

  1. 7,279 Posts.
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    Potential future cap rate movements:

    https://hotcopper.com.au/data/attachments/6273/6273037-aa3a9369b00519558b7b9b71c265b161.jpg
    The above cap rates are still very very low.

    Vs

    Potential blow out in finance costs:

    https://hotcopper.com.au/data/attachments/6273/6273043-379a76b408e9a21e23d45c0518096f41.jpg
    Look at that crazy low hedged rate of interest for FY24: 1.8%
    As these roll over, no way will be able to get a borrowing rate of 1.8% hedged or not.

    Good news, not much debt roll over until FY26 (and its not much).

    Bad news, as the debt rolls into FY27 it steps up.

    So my only guess is the market trying to evaluate forward interest rates going several years out into the future.

    Interesting times.

    Watching, but waiting....


 
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