Charter Hall Social Infrastructure REIT (ASX:CQE) fiscal 2027 earnings per share guidance growth of at least 4.6% seems "conservative" as it does not factor in any active portfolio curation, Jarden said in a Wednesday note.
It had its best one-day share price performance since March 2020 as the best-performing real estate investment trust. It continues to execute on an active portfolio management strategy, generating 180 basis points of portfolio curation spread between acquisitions and divestments.
Rent-to-revenue ratios remain stable at 9.7%. The REIT has enough buffer to absorb potential lower occupancy and higher costs.
There is a debt headwind into fiscal year 2028 and fiscal year 2029, but the REIT is expected to manage this through positive capital recycling and generating favourable outcomes on its MRRs.
The investment firm retained an overweight rating on Charter Hall and raised the price target to AU$3.35 per share from AU$3.30 per share.