Charter Hall aims for further divestments

8 February 2024

Charter Hall Long WALE REIT (ASX:CLW) announced its half-year results for the period, with operating earnings of $94 million and divestments of $145.8 million. The Group announced plans for another $500 million, that are currently undergoing due diligence.

Avi Anger, Charter Hall Long WALE REIT Fund Manager commented: “CLW’s portfolio continues to demonstrate its resilience with strong income growth driven by 4.3% weighted average rent reviews across the portfolio.”

Avi Anger added: “We remain confident that CLW continues to be well placed to deliver strong rental growth, while the attractive nature of our assets provides opportunities to selectively curate the portfolio and build further balance sheet capacity.”

CLW had 94%1 of the portfolio by gross asset value independently valued as at 31 December 2023 with the balance of the portfolio having been independently valued at 30 June 2023.

The valuations resulted in a $306 million, or 4.5% net decrease from prior book values. The overall portfolio value decreased from $6,8542 billion to $6,508 billion and the portfolio average cap rate expanded 31bps from 4.77% to 5.08%.

At the end of the period, the REIT’s diversified portfolio is 99.9% occupied and comprised 546 properties with a long WALE of 10.8 years.

Based on information currently available and barring any unforeseen events, CLW reconfirms FY24 Operating EPS guidance of 26.0 cents and distribution per security guidance of 26.0 cents. Based upon yesterday’s closing price, this represents a 6.9% distribution yield.