By proceeding you confirm that you are a resident of Australia or New Zealand accessing this website from within Australia or New Zealand and you represent, warrant and agree that:
Charter Hall Long WALE REIT (ASX:CLW) (the REIT) today announces its full year results for the period ending 30 June 2021 (FY21). Key financial and operational highlights for the period are:
Avi Anger, Charter Hall Long WALE REIT Fund Manager commented:
“FY21 has seen the CLW portfolio continue to grow in a measured way, enhancing portfolio quality, improving asset and tenant diversification and providing investors with a growing income stream and capital growth. The portfolio is highly diversified across 468 properties valued at $5.6 billion. CLW provides security and continuity of income with a WALE of 13.2 years and 48% of leases that are NNN. These characteristics provide the REIT’s income and distributions significant insulation from market shocks. The 16.8% growth in NTA and 3.2% increase in distributions over the year demonstrates the resilience and attractive nature of our portfolio and the security of income it provides.”
During FY21, CLW announced $1.4 billion of new property acquisitions which contributed to enhancing portfolio quality, sector diversification and strengthening the quality and diversification of tenants. These transactions comprised:
Overall, the total property portfolio has increased by approximately $1.93 billion to $5.56 billion for the period, driven by $1.4 billion of net acquisitions and $523 million in property revaluation uplift.
At the end of the period, the REIT’s diversified portfolio is 98.3% occupied and comprised 468 properties with a long WALE of 13.2 years. The portfolio weighted average capitalisation rate firmed 65 bps during the period to 4.77% as at 30 June 2021.
Strengthening the REIT’s capital position
Following these capital management initiatives, CLW has a weighted average debt maturity of 5.6 years and a weighted average hedge maturity of 3.8 years as at 30 June 2021. Pro-forma balance sheet gearing of 31.4% remains in the middle of the target 25–35% range and look-through gearing is 39.7%5.
The REIT reconfirms that based on information currently available and barring any unforeseen events or further COVID-19 impacts, CLW provides FY22 Operating EPS guidance of growth of no less than 4.5% over FY21 Operating EPS of 29.2 cents. This equates to a forecast FY22 EPS of 6.4% based on CLW’s closing price as at 1 July 2021 of $4.78.
Announcement authorised by the Board
Click here to view ASX announcement
1 Gross valuation uplift less capital expenditure and amortised incentives during the period. Relates to properties which were subject to an independent valuation during the period.
2 Reflects balance sheet gearing, adjusted to include the property acquisitions announced to the ASX on 1 July 2021, the acquisition of the Terrey Hills Tavern that exchanged post-balance date and including distribution reinvestment proceeds from the June 2021 quarter. Unadjusted balance sheet gearing as at 30 June 2021 was 27.4%
3 Property acquisition announced to the ASX on 1 July 2021
4 The acquisition of the Endeavour Group leased Terrey Hills Tavern occurred post reporting date
5 Reflects balance sheet and look through gearing, adjusted to include the property acquisitions announced to the ASX on 1 July 2021, the acquisition of the Terrey Hills Tavern that exchanged post-balance date and including distribution reinvestment proceeds from the June 2021 quarter. Unadjusted balance sheet gearing as at 30 June 2021 was 27.4% and look-through gearing was 36.6%