Charter Hall Long WALE REIT Stapled (2 Units) CLW

Morningstar Rating
A$3.18 −0.05 (1.55%)
View Full Chart

Company Report

Securities Attractive Underpinned by Charter Hall Long WALE's Solid Portfolio

The investment objective of Charter Hall Long WALE REIT is to earn stable and secure income. Its rents are secured with long leases, geography and sector diversification, and solid tenants. The portfolio’s weighted average lease expiry of 9.2 years as of June 30, 2026, is longer than most REIT’s. Majority of the assets are located on the Eastern Seaboard of Australia, with half in New South Wales and Victoria. The sector exposure is diversified: almost 50% of the properties are retail (pubs, service stations and department stores mostly), a fourth industrial and logistics, 15% offices, and the rest data centers and social infrastructure. Top 10 tenants, government, publicly listed, and multinational and national businesses, make up of vast majority of the rental income.

Price vs Fair Value

CLW is trading at a LOCK|!X<sgn premium.
Price
A$3.18
Fair Value
LOCK|xp
Uncertainty
LOCK|%?
1-Star Price
LOCK|^$P
5-Star Price
LOCK|&>
Economic Moat
LOCK|^T
Capital Allocation
LOCK|tG%$lL

Bulls Say, Bears Say

Bulls

Charter Hall Long WALE’s income is relatively predictable for the next decade, secured by long-term tenancy agreements. Half the leases have inflation-linked rental uplifts baked in.

Bears

Long WALE assets lack flexibility. Charter Hall Long WALE’s rents may lag prevailing market rates, causing the portfolio to underperform.

Trading Information

Previous Close Price
A$3.23
Day Range
A$3.18–3.29
52-Week Range
A$3.18–4.46
Bid/Ask
A$3.18 / A$3.29
Shares Outstanding
722.36M
Market Cap
A$2.30B
Volume/Avg
2M / 2M

Key Statistics

Price/Earnings (Normalized)
22.48
Price/Sales
11.83
Dividend Yield (Trailing)
8.02%
Dividend Yield (Forward)
8.02%
Dividend Payment Schedule
Feb, May, Aug, Nov
Total Yield
10.20%

Company Profile

Charter Hall Long WALE REIT is a listed investment vehicle established and managed by Charter Hall Group. The REIT pays management fees to the parent group. There are over 500 properties on balance sheet and in joint ventures, spanning retail, industrial, office, data centers and social infrastructure. The portfolio typically has near full occupancy and long weighted average lease expiry, or WALE, of around 10 years. About half the leases are subject to annual inflation-linked rental uplifts, and half to fixed annual increases (typically 3%). One third of the REIT’s income is rents collected from the properties held on its own balance sheet and the rest is co-investment earnings from a dozen joint ventures.
Sector
Real Estate
Industry
REIT - Diversified
Stock Style Box
Small Value
Total Number of Employees
—

Competitors

Valuation

Metric
CLW
WPR
BWP
Price/Earnings (Normalized)
22.4812.5411.53
Price/Book Value
0.670.720.81
Price/Sales
11.838.6112.29
Price/Cash Flow
14.3212.5518.95
Price/Earnings
CLW
WPR
BWP

Financial Strength

Metric
CLW
WPR
BWP
Quick Ratio
0.580.371.17
Current Ratio
2.040.611.22
Interest Coverage
3.283.4610.52
Quick Ratio
CLW
WPR
BWP

Profitability

Metric
CLW
WPR
BWP
Return on Assets (Normalized)
3.58%4.47%3.43%
Return on Equity (Normalized)
5.47%6.80%4.49%
Return on Invested Capital (Normalized)
3.57%6.33%4.55%
Return on Assets
CLW
WPR
BWP

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