We Up Charter Hall Group's FVE by 3% Following Guidance Upgrade; Securities Still Overvalued

Charter Hall manages retail and institutionally listed and unlisted property investments. Management base fees and property services fees are relatively stable. The group also co-invests in many of its vehicles to align interest with funds management clients. But we expect less co-investments in the future as parking money in its own funds ties up capital. We forecast a declining contribution from co-investments to one third of the group's EBITDA, compared with the historical average of 40%.