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Charter Hall Long WALE REIT (ASX:CLW) (the REIT) today announces its full year results for the period ending 30 June 2020 (FY20). Key financial and operational highlights for the period are:
Avi Anger, Charter Hall Long WALE REIT Fund Manager commented:
“FY20 has been another portfolio enhancing period for CLW. Despite the uncertainties presented by COVID-19, we have been able to successfully deliver EPS growth of 5.2% for FY20. We have also further diversified the portfolio, improved the quality of assets and extended CLW’s WALE. CLW has benefited from the sourcing of high quality transactions and the active asset management of the Charter Hall platform, partnering with tenants to extend CLW’s portfolio WALE and increasing underlying asset values.”
During FY20, CLW announced $1.4 billion of new property acquisitions which contributed to extending the portfolio WALE, enhancing sector diversification and strengthening the quality and diversification of tenants. These transactions comprised:
• Lease extensions:
CLW has also secured long term income through active asset management:
Overall, the total property portfolio has increased by approximately $1.52 billion to $3.63 billion for the period, driven by $1.4 billion of net acquisitions and capex and $96 million in property revaluations.
At the end of the period, the REIT’s diversified portfolio is 99.8% occupied and comprised 386 properties with a long WALE of 14.0 years. The portfolio weighted average capitalisation rate firmed 53 bps during the period to 5.42% as at 30 June 2020.
Strengthening the REIT’s capital position
During FY20, CLW completed several capital management initiatives, including:
Post balance date, the REIT divested its interest in Waypoint REIT.
Following these capital management initiatives, CLW has available investment capacity of approximately $290 million, a weighted average debt maturity of 3.9 years and a weighted average hedge maturity of 4.4 years as at 30 June 2020. Pro-forma balance sheet gearing of 24.2% as at 30 June 2020 remains below the target 25–35% range and look-through gearing has fallen to 37.8%.
FY21 Operating Earnings Guidance
The REIT confirms that based on information currently available (including with respect to the COVID-19 pandemic) and barring any unforeseen events, CLW provides FY21 Operating EPS guidance of no less than 29.1 cents per security, reflecting Operating EPS growth over FY20 of at least 2.8%
The target distribution payout ratio remains at 100% of Operating Earnings.
1 Reflects balance sheet gearing, pro forma adjusted for the committed acquisition of Bunnings, Palmerston and divestment of the REIT’s 5% interest in Waypoint REIT. Unadjusted balance sheet gearing as at 30 June 2020 was 26.1%
Announcement authorised by the Board
Click here to view the CLW FY20 Results Webcast Briefing
Click here to view the ASX Announcement
Click here to view the Presentation
Click here to view the FY20 Financial Report
Click here to view the Appendix 4E