charter-hall-long-wale-reit-feature
Image: Charter Hall Long WALE REIT.
  • 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.



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