Charter Hall Long WALE REIT HY22 results

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