Charter Hall Social Infrastructure Reports Strong Uplift in Asset Valuations, but They May Revert

We maintain our fair value estimate for no-moat rated Charter Hall Social Infrastructure REIT, or Charter Hall REIT, at AUD 3.60 per unit following its fiscal 2022 half-year result. At current unit prices, the REIT screens as slightly overvalued. Net profits growth of 263%, or AUD 150 million, in the first half was mostly driven by noncash AUD 175 million in property valuation uplifts since June 30, 2021.