Charter Hall Long WALE REIT - Portfolio Valuation Updateright-arrow
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by Charter Hall Announcements

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Charter Hall Long WALE REIT (CLW) today announces the results of June portfolio valuations.

CLW had 458 properties, or 92% of the portfolio by gross asset value independently valued as at 30 June 20211.

The valuations resulted in a $373.4 million, or 7.6% uplift on prior book values. The overall portfolio value has increased from $4.9bn to $5.3bn and the portfolio average cap rate has compressed 38bps from 5.14% to 4.76%.

The below table summarises the 6-month change in valuation:

SectorPrior book value (A$m)Valuation
(A$m)
Valuation uplift (A$m)ChangePrior cap rateCurrent cap rateChange
Long WALE Retail1,512.31,614.2
101.96.7%5.15%4.84%(0.31%)
Office1,311.71,364.052.34.0%5.33%5.11%(0.22%)
Industrial & Logistics1,064.11,165.7101.69.5%5.17%4.61%(0.56%)
Social Infrastructure777.4833.355.97.2%4.36%4.07%(0.29%)
Agri-logistics240.5302.361.825.7%6.44%5.21%(1.24%)
Total4,906.15,279.5373.47.6%5.14%4.76%(0.38%)

The table below summarises the 12-month change in valuation, noting that this reflects CLW’s like-for-like stabilised portfolio (i.e. does not include properties acquired during the period):

SectorJune 2020 valuation (A$m)June 2021 valuation (A$m)Valuation uplift (A$m)ChangeJune 2020 cap rateJune 2021 cap rateChange
Long WALE Retail993.81,124.7
130.913.2%5.38%4.82%(0.56%)
Office984.31,054.269.97.1%5.60%5.21%(0.39%)
Industrial & Logistics1,009.51,165.7156.215.5%5.42%4.61%(0.80%)
Social Infrastructure401.3463.261.915.4%4.47%3.85%(0.62%)
Agri-logistics240.5302.361.725.7%6.44%5.21%(1.24%)
Total3,629.54,110.1480.613.2%5.42%4.78%(0.64%)

Avi Anger, Fund Manager of CLW commented:

“The valuations announced today highlight the quality of the CLW portfolio and the benefits of properties with long leases to strong tenants. All our sectors reported improvements in valuations, with particular strength in our long WALE retail, industrial and agri-logistics assets. Collectively, our NNN portfolio saw a 9.7% uplift from prior book values. Charter Hall has carefully curated the CLW portfolio and it is pleasing to see the results of our asset and sector selection being rewarded with strong valuation gains.”

The unaudited impact of the valuations announced today is an increase to the pro-forma NTA per security from $4.65 to $5.24, a $0.59 or 12.8% increase on the December 2020 NTA2.

CLW will report the REIT’s Financial Year 2021 Results on 9th August 2021.

 

1 The $415.4 million of property acquisitions announced to ASX on 18 May 2021 and the acquisition of Bunnings Caboolture announced to ASX on 9 December 2020 were not revalued given their recent acquisition
2 December 2020 NTA pro-forma adjusted as outlined in Appendix A of the acquisitions and equity raising investor presentation released to ASX on 18 May 2021

Announcement authorised by the Board

Click here to view the ASX Announcement