Charter Hall: Increase Our Fair Value to AUD 17.50 on Transfer of Coverage; Maintain Narrow Moat

We transfer coverage of Charter Hall and raise our fair value estimate 2% to AUD 17.50 per security. This increase is driven by slightly more optimistic growth assumptions on funds under management for the asset management business. We assume a five-year compound annual growth rate of 6% on FUM growth. While this is below the fiscal 2020-24 average of 18%, it is a tad higher than our growth assumptions for many other property fund managers, driven by Charter Hall’s track record and scale.