Image: Canva, Charter Hall.
  • Portfolio weighted average lease expiry of 12 years
  • $871 million of net property acquisitions
  • Distributions 30.5 cents per unit

Charter Hall Long WALE REIT (ASX: CLW) has announced its full-year results, with the company’s FY22 highlights including several acquisitions.

“FY22 has seen CLW continue to grow in a measured way, enhancing portfolio quality and improving asset and tenant diversification. During the year we successfully completed the acquisition of the ALE Property Group in partnership with Hostplus. We also completed three high-quality Industrial & Logistics acquisitions, two of which were secured off-market,” said Charter Hall Long WALE REIT fund manager Avi Anger.

Operational earnings $207.2 million / 30.5 cpu up 4.5%
Statutory profit $911.9 million up 47.5%
Distributions 30.5 cpu up 4.5%
NTA $6.17 up 18.2%

Source: Charter Hall Long WALE REIT.

CLW’s operational earnings moved up to $207.2 million, or 30.5 cpu, an increase of 4.5% on the previous period. Similarly, distributions were 30.5 cpu, a 4.5% increase on the prior corresponding period.

Charter Hall Long WALE REIT’s profit for the year was $911.899 million, up from $618.314 million in FY21, a 47.5% increase, and net tangible assets were $6.17, up from $5.22.

The company’s total property portfolio saw an approximately $1.57 billion increase to $7.1 billion. The increase was driven by $871 million of net acquisitions, $670 million in net property revaluation uplift, and $25 million of capitalised costs.

At the end of the period, the REIT’s diversified portfolio is 99.9% occupied and comprised 549 properties with a long WALE of 12 years. The portfolio weighted average capitalisation rate is 4.35% as at 30 June 2022.

“Through active management and portfolio curation, the CLW portfolio has grown from $5.6 billion to $7.1 billion and the portfolio quality has been recognised in net tangible assets growing 18.2% over the year.

Looking forward, 49% of CLW’s leases are inflation-linked, providing a significant opportunity for strong rental growth in the year ahead,” said Ms Anger.

The $871 million of net property acquisitions made by CLW in FY22 included $88 million of industrial and logistics acquisitions, and $814 million of long WALE retail.

The industrial and logistics acquisitions included a Wetherill Park industrial facility in Sydney, leased to Cleanaway and ResourceCo, and two distribution centres in Brisbane: one in Brendale and leased to Modern Star, one in Larapinta, leased to Toyota Material Handling.

The long WALE retail acquisitions included a 50% interest in the ALE Property, an acquisition that CLW made in partnership with Hostplus.

The ALE Property portfolio consists of 78 pub properties, including 74 bottle stores in 99% metropolitan locations and 94% located on Australia’s east coast.

The properties are all NNN leases, significantly under-rented and leased to the ASX-listed Endeavour Group, Australia’s largest pub operator and liquor retailer.

CLW also divested its 56 Edmonstone Road property in Bowen Hills, Queensland for $70.9 million.

In other highlights, the CLW portfolio WALE is 12 years, 52% triple net leases across the portfolio, 49% of leases CPI linked, 51% of leases fixed with an average fixed increase of 3.1%, and portfolio cap rate firmed 42 bps from 4.77% at 30 June 2021 to 4.35% as at 30 June 2022.

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