Charter Hall Long WALE REIT (ASX:CLW) Announces 2025 Half Year Results
Financial Performance
Charter Hall Long WALE REIT reported operating earnings of $89.8 million, or 12.5 cents per security, and distributions of 12.5 cps for the six months ending 31 December 2024. Net tangible assets stood at $4.62 per security, while statutory earnings were $51.3 million. The REIT achieved a 3.5% like-for-like Net Property Income growth, a portfolio weighted average lease expiry of 9.7 years, and an occupancy rate of 99.8%.
Portfolio Updates
The REIT completed a $50 million on market security buy-back program and achieved net property divestments of $289 million. This included the sale of $300.4 million of assets and the acquisition of two Endeavour Group leased, long WALE hospitality assets for $11.5 million. Additionally, agreements were executed with Coles for an expansion and lease extension at its Perth Airport Distribution Centre, WA.
Capital Position
Charter Hall Long WALE REIT maintains a balance sheet gearing of 31.8%, within the target range of 25% – 35%. The REIT refinanced $310 million of balance sheet debt, extending maturities by 2.8 years. As of 31 December 2024, the weighted average debt maturity is 4.0 years, with staggered maturities from FY27 to FY32. Moody’s reaffirmed CLW’s Baa1 investment grade rating in December 2024.
Executive Comments
Avi Anger, Charter Hall Long WALE REIT Fund Manager, stated, “CLW has successfully completed its $50 million on market security buy-back program. The portfolio is in an excellent position with 53% of leases in the portfolio being triple-net, occupancy of 99.8% and a weighted average lease expiry of 9.7 years. Like for like property income growth of 3.5% resulted from an attractive mix of fixed and CPI linked annual increases.”
FY25 Guidance
Charter Hall Long WALE REIT reaffirms its FY25 operating earnings per security guidance of 25.0 cents and distributions per security guidance of 25.0 cents, representing a 6.4% distribution yield based on the closing price as of 6 February 2025.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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