David Jones Charter Hall
Charter Hall Long WALE REIT took 50% interest in David Jones’ flagship ‘Elizabeth Street’ store. Photo – Charter Hall.
  • The "largest owner of diversified, long WALE real estate of any ASX-listed REIT"
  • Earnings per share of 14.5 cents; 3.6% growth in operating earnings
  • Reaffirmed earlier guidance of no less than 29.1 cents a share (a 6.2% yield)

As half-yearly ASX announcements season rolls on, today we heard from Charter Hall Long WALE real estate investment trust (REIT), which has the ‘CLW’ ticker.

The highlights were an operating earnings per share of 14.5 cents and 3.6% growth in operating earnings to A$73.6 million. The fund made $697 million of new investments during the six months, increasing the portfolio valuation to $4.5 billion.

For those not aware of ‘WALE’, it stands for weighted average lease expiry. In the world of commercial property, this takes into account the length of all leases in the property, weighted according to the tenants and the space they represent.

Nice long term leases taking up a large space would outweigh the risks of smaller spaces being leased for shorter time periods.

The Charter Hall Long WALE REIT describes itself as the “largest owner of diversified, long WALE real estate of any ASX-listed REIT.”

Their tenants are mainly government, ASX-listed and multinational corporations. By December 2020, there were 459 properties in the portfolio, with a 97.5% average occupancy.

Major tenants include Telstra, The Australian Government, the NSW, WA, Queensland and South Australian governments, Australian Post, BP, Woolworths, Ingham’s, Coles and David Jones.

The average lease expiry is more than 14 years, hence this is a “long” WALE portfolio.

The REIT reaffirmed its earlier guidance of no less than 29.1 cents a share earnings for the full financial year 2021, which at today’s share price ($4.72) would equate to a 6.2% yield.

Earlier reports have suggested REITs could rise 18% this year, more than the property market itself.


Before investing in any asset, please do your own independent research, taking into account your own personal financial situation. This article does not purport to provide financial advice. See our Terms of Use.

You May Also Like

“Sydney setting the pace”: CBD office rents march higher

Cushman & Wakefield’s quarterly Office Marketbeat reveals 2.9% quarter-on-quarter uplift in Sydney

Canberra office market shows impressive resilience and growth

The market is underpinned by low vacancy, large developments in the pipeline and strong rental growth

Accenture and Lendlease to expand data insights platform

The platform which uses AI and virtual reality will be expanded to increase digital and in-store visits.

Demand for life science assets on the rise in Australia

Australians are getting older and this is contributing to the increase in demand for life science assets across Australia

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.