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Charter Hall Retail REIT (CQR.AX)

Company Dividend Discount ModelIndustry: REIT - RetailSector: Real Estate

Valuation Snapshot

Stable Growth$12.68 - $63.61$22.67
Multi-Stage$10.48 - $11.45$10.95
Blended Fair Value$16.81
Current Price$3.84
Upside337.80%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS6.20%8.21%0.250.250.200.180.190.180.190.180.150.13
YoY Growth---1.58%27.94%7.06%-2.12%2.36%-6.35%7.60%22.16%14.63%15.51%
Dividend Yield--6.42%7.85%5.42%4.85%4.92%5.45%4.44%4.32%3.64%2.72%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)231.00
(-) Cash Dividends Paid (M)217.50
(=) Cash Retained (M)13.50
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)46.2028.8817.33
Cash Retained (M)13.5013.5013.50
(-) Cash Required (M)-46.20-28.88-17.33
(=) Excess Retained (M)-32.70-15.38-3.83
(/) Shares Outstanding (M)581.21581.21581.21
(=) Excess Retained per Share-0.06-0.03-0.01
LTM Dividend per Share0.370.370.37
(+) Excess Retained per Share-0.06-0.03-0.01
(=) Adjusted Dividend0.320.350.37
WACC / Discount Rate6.81%6.81%6.81%
Growth Rate4.20%5.20%6.20%
Fair Value$12.68$22.67$63.61
Upside / Downside230.08%490.36%1,556.60%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)231.00243.00255.63268.91282.88297.58306.50
Payout Ratio94.16%93.32%92.49%91.66%90.83%90.00%92.50%
Projected Dividends (M)217.50226.78236.44246.49256.94267.82283.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.81%6.81%6.81%
Growth Rate4.20%5.20%6.20%
Year 1 PV (M)210.30212.32214.34
Year 2 PV (M)203.33207.25211.21
Year 3 PV (M)196.57202.29208.11
Year 4 PV (M)190.02197.42205.04
Year 5 PV (M)183.68192.66202.00
PV of Terminal Value (M)5,104.515,354.205,613.58
Equity Value (M)6,088.426,366.156,654.27
Shares Outstanding (M)581.21581.21581.21
Fair Value$10.48$10.95$11.45
Upside / Downside172.80%185.24%198.15%

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