reports
- Gareth James
Morningstar | Labor’s Childcare Proposals Support Long-Term Industry...
A Labor victory in the forthcoming federal election would be positive for the childcare sector but a Coalition victory wouldn’t be disastrous by any means. Both parties have consistently argued for increasing government childcare spending and we expect this to continue for the foreseeable future. However, Labor’s current proposals are particularly generous, including higher wages for childcare workers, an increase in pre-school education funding, and an increase in the childcare subsidy, or ...
- Gareth James
Morningstar | Labor’s Childcare Proposals Support Long-Term Industry...
A Labor victory in the forthcoming federal election would be positive for the childcare sector but a Coalition victory wouldn’t be disastrous by any means. Both parties have consistently argued for increasing government childcare spending and we expect this to continue for the foreseeable future. However, Labor’s current proposals are particularly generous, including higher wages for childcare workers, an increase in pre-school education funding, and an increase in the childcare subsidy, or ...
- Gareth James
Morningstar | Corporate Action: We Recommend Charter Hall Education Tr...
As foreshadowed in our note of Feb. 13, 2019, we recommend Charter Hall Education Trust unitholders subscribe for new units under the unit purchase plan, or UPP. The UPP subscription price of AUD 3.35 is close to our fair value of AUD 3.34, which implies the price is fair. The appeal of the offer is also enhanced by the 7% discount to the current market price of AUD 3.57. The offer is open to registered unitholders as at 7:00pm on March 25, 2019 and closes on April 16, 2019. We have maintained ...
- Gareth James
Morningstar | Charter Hall Education Sensibly Capitalises on Positive ...
Charter Hall Education Trust’s decision to raise AUD 100 million to buy 13 childcare centres is a sensible move which capitalises on positive sentiment towards the childcare sector and yield stocks. Investor sentiment was particularly negative in mid-2018 due to concerns about an oversupply of childcare centres. However, the introduction of the childcare subsidy in July 2018 improved the affordability of childcare services, and childcare centre occupancy rates have improved in recent months. T...
- Gareth James
Morningstar | Charter Hall Education Sensibly Capitalises on Positive ...
Charter Hall Education Trust’s decision to raise AUD 100 million to buy 13 childcare centres is a sensible move which capitalises on positive sentiment towards the childcare sector and yield stocks. Investor sentiment was particularly negative in mid-2018 due to concerns about an oversupply of childcare centres. However, the introduction of the childcare subsidy in July 2018 improved the affordability of childcare services, and childcare centre occupancy rates have improved in recent months. T...
- Gareth James
Morningstar | Charter Hall Education Trust Provides Further Evidence o...
Charter Hall Education Trust’s first-half results and fiscal 2019 distribution guidance of AUD 0.16 per unit were in line with our expectations. We maintain our earnings forecasts but increase our fair value estimate by 4% to AUD 3.34 to reflect the time value of money impact on our financial model. At the current market price of AUD 3.29 per unit, Charter Hall Education remains fairly valued. The market price implies a fiscal 2019 distribution yield of 4.9% versus 4.8% at our fair value and d...
- Gareth James
Morningstar | Charter Hall Education Trust Provides Further Evidence o...
Charter Hall Education Trust’s first-half results and fiscal 2019 distribution guidance of AUD 0.16 per unit were in line with our expectations. We maintain our earnings forecasts but increase our fair value estimate by 4% to AUD 3.34 to reflect the time value of money impact on our financial model. At the current market price of AUD 3.29 per unit, Charter Hall Education remains fairly valued. The market price implies a fiscal 2019 distribution yield of 4.9% versus 4.8% at our fair value and d...
- Gareth James
Morningstar | Child Care Sector Still Attractive but Further Improveme...
Child care stocks have performed well in recent months, but the February 2019 reporting season needs to provide further evidence of improvement in child care centre occupancy rates to support higher share prices. The share price rally that began last November was triggered by evidence that the oversupply of child care centres was finally abating and being offset by increased demand due to the introduction of the Child Care Subsidy, or CCS, in July last year. This turnaround is in line with our i...
- Gareth James
Morningstar | Child Care Sector Still Attractive but Further Improveme...
Child care stocks have performed well in recent months, but the February 2019 reporting season needs to provide further evidence of improvement in child care centre occupancy rates to support higher share prices. The share price rally that began last November was triggered by evidence that the oversupply of child care centres was finally abating and being offset by increased demand due to the introduction of the Child Care Subsidy, or CCS, in July last year. This turnaround is in line with our i...
- Gareth James
Morningstar | Charter Hall Education Trust Still Undervalued Despite I...
Market sentiment towards child care stocks has improved significantly over the past month, triggered by Think Childcare’s announcement that occupancy rates are improving at its child care centres. Think attributed improvement to the recently introduced Child Care Subsidy, or CCS, which appears to be offsetting the effects of the build in oversupply of child care centres over the past few years. As further evidence of improvement, G8 Education, the largest listed child care centre operator, rei...
- Gareth James
Morningstar | Improving Child Care Centre Occupancy Rates Mark a Turni...
Charter Hall Education Trust is an externally managed childcare REIT that owns 337 properties in Australia and 50 in New Zealand. Charter Hall Education Trust is a property owner and does not operate the underlying childcare businesses. The typical property is freestanding, located in established residential and commercial locations, near medium- to high-traffic areas and close to public transport. Charter Hall Education Trust also owns a 4.4% stake in Arena REIT, an ASX-listed childcare REIT. T...
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