- Operating earnings up 5.6% to $97.8M
- Highlights included acquisition of ALE Property Group
- 52% triple net leases across the portfolio
Charter Hall Long WALE REIT (ASX: CLW) has released its HY22 results, with the half including major acquisitions such as ALE Property Group.
CLW opened trading on Monday at $4.89, the shareprice climbing throughout the day to a high of $4.97 late in the afternoon. CLW closed at $4.92. At time of writing it was trading at $5.02.
“During 1H FY22 we successfully completed the acquisition of the ALE Property Group in partnership with Hostplus,” said Charter Hall Long WALE REIT fund manager Avi Anger.
“This has seen us further improve the quality and diversity of CLW’s real estate portfolio and the resilience of CLW’s income through increasing our exposure to Australia’s leading hospitality operator, Endeavour Group.”
The company’s revenue for the half was $108.948 million, up 46% from the previous corresponding period, and profit from ordinary activities after tax attributable to members was $589.556 million, up 196.9% from the previous corresponding period. CLW operating earnings was $97.788 million up 32.8%
| Charter Hall Long WALE REIT | Finance Trust | ||||
| 6 months to
31 Dec 2021 |
6 months to
31 Dec 2020 |
6 months to
31 Dec 2021 |
6 months to 31 Dec 2020 |
||
| Revenue ($’000) | 108,948 | 74,627 | 19,429 | 14,394 | |
| Statutory profit/(loss) for the half year ($’000) | 589,556 | 198,592 | 15,041 | 3,843 | |
| Basic earnings per stapled security (cents) | 92.32 | 39.10 | 2.36 | 0.76 | |
| Operating earnings of the REIT ($’000) | 97,788 | 73,633 | – | – | |
| Operating earnings of the REIT per stapled security (cents) | 15.31 | 14.50 | – | – | |
| Distributions ($’000) | 102,790 | 77,901 | – | – | |
| Distributions per stapled security (cents) | 15.24 | 14.50 | – | – | |
| 31 Dec 2021 | 30 Jun 2021 | 31 Dec 2021 | 30 Jun 2021 | ||
| Total assets ($’000) | 6,199,874 | 4,687,389 | 1,888,661 | 1,329,652 | |
| Total liabilities ($’000) | 1,969,606 | 1,408,279 | 1,882,681 | 1,343,402 | |
| Net assets attributable to securityholders ($’000) | 4,230,268 | 3,279,110 | 5,980 | (13,750) | |
| Stapled securities on issue (‘000) | 718,378 | 628,216 | 718,378 | 628,216 | |
| Net assets per stapled security ($) | 5.89 | 5.22 | 0.01 | (0.02) | |
| Balance sheet gearing – total debt (net of cash) to total assets (net of cash) | 29.2% | 27.4% | |||
| Look through gearing – total debt (net of cash) to total assets (net of cash) | 38.2% | 36.6% | |||
Source: Charter Hall Long WALE REIT.
Ms Anger also noted that “In addition, we further increased our exposure to the Industrial and Logistics sector with three high quality acquisitions, two of which were secured off-market. These acquisitions were a direct result of the depth of expertise and ability of the Charter Hall management platform which the REIT benefits from.”
| 6 months to 31 Dec 2021 | 6 months to 31 Dec 2020 | ||||
| $0 | $0 | ||||
| Net property income | 137,574 | 104,448 | |||
| Interest income | 47 | 147 | |||
| Fund management fees | (12,915) | (8,535) | |||
| Finance costs | (24,386) | (20,490) | |||
| Administration and other expenses | (2,532) | (1,937) | |||
| Operating earnings* | 97,788 | 73,633 | |||
Source: Charter Hall Long WALE REIT.
The half saw one disposal, 56 Edmondstone Road in Bowen Hills, Queensland, on 22 December 2021, for $70.9 million.
Acquisitions for the period included the following:
| Acquisition date | Acquisition price | |||
| $’000 | ||||
| Bunnings, Baldivis WA | 5 Jul 2021 | 49,000 | ||
| Simon Transport, Carole Park QLD | 15 Jul 2021 | 83,125 | ||
| Myer, Melbourne VIC (33.3% interest) | 30 Jul 2021 | 135,167 | ||
| Modern Star, Brendale QLD | 12 Aug 2021 | 32,250 | ||
| Terrey Hills Tavern, Terrey Hills NSW (49.9% interest) | 23 Aug 2021 | 12,887 | ||
| Mitre 10, 74 Pitt St, Sydney NSW | 31 Aug 2021 | 18,000 | ||
| Cleanaway & Resource Co, Wetherill Park NSW | 10 Sep 2021 | 34,600 | ||
| Toyota Material Handling, Larapinta QLD | 1 Oct 2021 | 21,000 | ||
| ALE portfolio (50% interest) | 17 Dec 2021 | 814,495 | ||
| 1,200,524 | ||||
Source: Charter Hall Long WALE REIT.
