Charter Hall Long WALE REIT Earnings up 8.5%

9 February 2020

Charter Hall Long WALE REIT today announces its half year results for the period ending 31 December 2020 with the group increasing earnings per share by 8.5% and extending its guidance on growth in EPS from 4.0% to 5.2%.


Avi Anger, Charter Hall Long WALE REIT Fund Manager commented: “1H FY20 has been another very active period for CLW. During the period, we enhanced the portfolio through high quality acquisitions that increased earnings, further diversified the portfolio, improved the quality of assets and extended CLW’s WALE. CLW has benefited from the active asset management of the Charter Hall platform which has contributed to extending CLW’s portfolio WALE and increasing underlying asset values.


Key financial and operational highlights for the period are:


Financial highlights:

  • Operating earnings of $52.2 million, or 14.0cpu, up 8.5% on the prior corresponding period (pcp)
  • Statutory profit of $80.5 million
  • Distributions of 14.0cpu, up 8.5% on pcp
  • NTA of $4.52, up 10.5% from $4.09 at 30 June 2019
  • Balance sheet gearing of 23.8%, below target range of 25% – 35%
  • $864.7 million of new equity raised.


Operating highlights:

  • Portfolio WALE of 14.5 years, up from 12.5 years at 30 June 2019
  • $3.6 billion property portfolio, up from $2.1 billion as at 30 June 2019
  • $1.4 billion of property acquisitions
  • Portfolio cap rate firmed 46 bps from 5.95% at 30 June 2019 to 5.49%.


Avi Anger, said, “during the period we successfully increased the portfolio’s WALE from 12.5 years to 14.5 years through a combination of leasing activity and portfolio enhancing acquisitions. We further diversified the portfolio by sector with the introduction of the Telstra Exchanges Portfolio and the BP Portfolio. As a result of value created through active management and value accretive acquisitions, we have been able to lift our original earnings guidance from 4.0% full year EPS growth to 5.2% full year EPS growth for FY20.”


Overall, the total property portfolio has increased by approximately $1.44 billion to $3.59 billion for the period, driven by $1.37 billion of net acquisitions and capex and $83 million in property revaluations. Acquisitions during the period included;


  • Thales, Homebush, Sydney NSW – $46.2M
  • Telstra Portfolio $348.9M
  • ATO, Upper Mount Gravatt, Brisbane QLD – $63.6M
  • Bunnings, Palmerston, Darwin – $15.0M
  • 242 Exhibition Street, Melbourne -$124.5M
  • BP Portfolio – $414.4M
  • Arnott's, Huntingwood NSW – $198.9M


At the end of the period, the REIT’s diversified portfolio is 99.8% occupied and comprised 384 properties with a long WALE of 14.5 years. The portfolio weighted average capitalisation rate firmed 46 bps during the period to 5.49% as at 31 December 2019.


The Group raised over $819m in fresh equity across 3 separate capital raising to support acquisitions for the Fund. The fund also increased gearing (on a look through basis) from 34.3% to 35.3%.


NTA for the the Fund per security increased from $4.09 to $4.52 as at 31st Dec,


The REIT confirms that barring any unforeseen events and no material change in current market conditions, CLW’s guidance for FY20 remains unchanged from the guidance announced on 12 December 2019 of Operating EPS of 28.3 cents per security reflecting Operating EPS growth over FY19 of 5.2%.