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Charter Hall Long WALE REIT (ASX:CLW) (the REIT) today announces its half year results for the period ending 31 December 2020 (1H FY21). Key financial and operational highlights for the period are:
Avi Anger, Charter Hall Long WALE REIT Fund Manager commented:
“During 1H FY21 we further diversified and improved the resilience of CLW’s portfolio and increased the portfolio WALE. We extended our partnership with bp, acquiring an interest in 70 Long WALE triple-net (NNN) convenience retail properties in New Zealand. In December, we further expanded our telco exchange portfolio with the acquisition of Telstra’s Pitt Street, Sydney CBD telco exchange. At the end of the period, we also agreed to acquire a 50% interest in the David Jones flagship Elizabeth Street store in the Sydney CBD.
“Collectively these acquisitions further diversify the CLW portfolio and continue our focus on NNN lease properties with high underlying land value which should provide long term growth prospects for our investors. The sourcing of high quality transactions and the active asset management of properties in CLW’s portfolio is the result of the strength, ability and depth of expertise of the Charter Hall management platform which the REIT benefits from”.
During 1H FY21, CLW announced $697 million 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:
Overall, the total property portfolio has increased by approximately $852 million for the period to $4.5 billion as at 31 December 2020, driven by $696 million of net acquisitions, $150 million in net property revaluations and capex.
At the end of the period, the REIT’s diversified portfolio is 97.5% occupied and comprised 459 properties with a long WALE of 14.1 years. The portfolio weighted average capitalisation rate firmed 24 bps during the period to 5.18% as at 31 December 2020.
Strengthening the REIT’s capital position
Following these capital management initiatives, the REIT has a long-dated weighted average debt maturity of 4.1 years and a weighted average hedge maturity of 4.2 years as at 31 December 2020. Pro-forma balance sheet gearing of 29.0% as at 31 December 2020 remains within the target 25–35% range.
FY21 Operating Earnings Guidance
The REIT reaffirms its FY21 Operating EPS guidance of no less than 29.1 cents per security, reflecting Operating EPS growth over FY20 of no less than 2.8%, based on information currently available and barring any unforeseen events.
The target distribution payout ratio remains at 100% of Operating Earnings.
Announcement authorised by the Board
Click here to view the ASX Announcement
Click here to view the CLW 1H FY21 Results Presentation
Click here to view Webcast
Click here to view the Interim Financial Report
Click here to view the Appendix 4D