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.


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