Charter Hall Retail REIT December 2016 Asset Revaluations

Charter Hall Retail REIT (ASX:CQR) (CQR or the REIT) today announced a $130 million or 5.2% increase in the value of the REIT's portfolio, following the property revaluation process undertaken as at December 2016.

Following a review of CQR's portfolio, it was determined that 65 assets representing 100% of the REIT's stabilised portfolio (excluding properties under development) would be independently revalued at December 2016. The six remaining assets in the portfolio were subject to internal valuations. This includes the REIT's properties under development which were deemed to be at fair value based on a review of costs capitalised to date. All assets, excluding development properties which are carried at cost, have been externally valued in the last 12 months.

The total value of CQR's investment properties increased to $2,695.8 million and the portfolio weighted average capitalisation rate (WACR) firmed by 29 bps, from 6.71% to 6.42%. The improvement in the REIT's portfolio WACR was a result of the valuations undertaken by independent valuers. The internal valuations undertaken included capitalisation rates consistent with June 2016.

Scott Dundas, Fund Manager of the REIT, said:  

"Our geographically diverse and resilient portfolio benefits from exposure to high growth corridors and operates as the dominant shopping centre in each region, providing unitholders with growing, long term, sustainable returns. The total valuation increase of $130 million is the result of income uplift across the portfolio, capital expenditure on our development assets and an improvement in capitalisation rates on the independently revalued assets".