Real Estate Equity

Running head: REAL ESTATE EQUITY
Real Estate Equity
Name of the Student:
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Contents
Introduction:....................................................................................................................................2
Selection of an appropriate AREIT for analysis:.............................................................................2
Review and critical analysis of recently published results of CQR REIT:......................................2
Conclusion and recommendations:..................................................................................................8
References:....................................................................................................................................10

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Introduction:
A real estate investment trust (REIT) allows the investors opportunity to secure income and
experience gain from the real estate market. Investors with relatively small amount of investment
can also invest in REIT to earn significant amount of return from the real estate market in the
country. Australia has a vibrant market when it comes to REITs. Though different types of
REITs are listed in the recognized stock exchange of the country, i.e. ASX however, all REITs
specifically invest in assets from real estate market. Using the recently published report of a
specific REIT a brief discussion on its results and performance shall be provided in this
document to inform the readers about the results of such REIT in the latest financial year.
Selection of an appropriate AREIT for analysis:
There are number of REITs operating in the country however CQR, part of Charter Hall Group
has been selected for the purpose of analysis in this document. Thus, the review and critical
analysis of recently published report of Charter Hall Group’s CQR is provided in this document.
Review and critical analysis of recently published results of CQR REIT:
In order to review and critically analyze the results of CQR AREIT it would be crucial to have
the highlights of the result for the financial year 2019. The following is an extract from the
highlights published by the AREIT for the financial year 2019 (Solt and Miller, 2017).

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As is clear from the above that in the financial year 2019 the operating earnings of the group has
increased significantly compared to the amount of operating earnings of the group in the
previous financial years. In FY 2019 the group has earned 47.4 cps and 56.3 cps as post tax and
pre-tax CAGR as against 43.5 cps and 37.7 cps of pre-tax and post-tax CAGR respectively in
financial year 2018. This is an increase of 25.5% in post-tax CAGR from the previous FY 2018.
In FY 2019 the group has generated a gross revenue of $1,713 million, up by 4.83% from the
amount of revenue generated by the group in FY 2018, i.e. $1,634 million. The 50% of the
revenue of the REIT is attributed to security holders thus, $856.5 million out of $1,713 million is
attributable to the security holders in FY 2019 shows the huge amount of fund attributable to the
security holders of the group. The significant increase in operating revenue and profit of the