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:
Unfortunately, legal restrictions prevent us from allowing you access to this website. If you have any questions, please contact us by e-mail by clicking on the link below.
Charter Hall Long WALE REIT (ASX:CLW) (the REIT) today announces its full year results for the period ending 30 June 2024 (FY24). Key financial and operational highlights for the period are:
– $462.9 million of assets settled;
– $225.3 million unconditionally exchanged; and
– $74.0 million exchanged with settlement awaiting FIRB approval
Avi Anger, Charter Hall Long WALE REIT Fund Manager commented:
“CLW has successfully completed a strategic program of divesting assets, reducing near term lease expiry risk, strengthening the balance sheet and curating the portfolio for the future. The portfolio at 30 June 2024 now features an increased weighting towards triple-net leases of 55%, occupancy of 99.9% and like for like income growth of 4.7% as a result of an attractive mix of fixed and CPI linked annual increases”
Portfolio curation remains a key strength of the Charter Hall platform. During FY24, CLW executed $762.2 million of completed or exchanged divestments.
At the end of the period, the REIT’s $5.8 billion diversified portfolio is 99.9% occupied and comprised 540 properties with a long WALE of 10.5 years.
CLW had 100% of the portfolio by gross asset value independently valued during FY24 resulting in a net valuation decrease of $626 million over the twelve-month period. The portfolio weighted average capitalisation rate expanded 63bps from 4.8% to 5.4%.
With the completion of the asset divestment program, CLW has de-levered and strengthened its balance sheet position with all pro forma gearing metrics reduced as follows:
Based on the REIT’s current position, there remains material headroom to debt gearing covenant (<50%) with portfolio cap rates needing to expand 136bps or 20% valuation decline.
In July 2024, Moody’s reaffirmed CLW’s Baa1 investment grade rating.
Post balance-date, CLW has also entered into a zero-cost hedge restructure that increases FY26 hedging.
CLW has a weighted average debt maturity of 4.1 years with staggered maturities over a six-year period from FY27 to FY32. Including the proceeds from contracted but unsettled disposals, CLW’s look-through drawn debt is 72% hedged with a weighted average hedge maturity of 2.0 years. CLW has $344 million of cash and undrawn debt.
The REIT also announces its intention to conduct an on-market buy-back3 of securities in CLW for up to $50 million.
Based on information currently available and barring any unforeseen events, CLW provides FY25 operating earnings per security guidance of 25.0 cents and distributions per security guidance of 25.0 cents. Based upon yesterday’s closing price, this represents a 7.2% distribution yield4.
1 As at 30 June 2024 pro forma adjusted for the settlement of the Inghams Portfolio (unconditionally exchanged) and Red Cross, Sydney (exchanged with settlement subject to FIRB approval)
2 Subject to FIRB approval
3 Please refer to the accompanying Appendix 3C for further information relating to the buy-back program. The timing and volume of securities purchased under the buyback will depend on prevailing market conditions, the market price of securities and other factors. Charter Hall WALE Limited, as Responsible Entity of CLW, reserves the right to vary, suspend or terminate the on-market buy-back program at any time.
4 Based on CLW forecast FY25 DPS of 25.0c divided by the CLW security price of $3.46 as at 7 August 2024
Announcement Authorised by the Board
Click here to view the PDF ASX Release
Click here to view the PDF FY24 Results Presentation
Click here to view the PDF Appendix 4E and Financial Report