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Charter Hall Long WALE REIT Stapled Secs Cons of 1 DIF + 1 FSPT + 1 Finance - Stock Quote CLW

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Morningstar's Charter Hall Long WALE REIT Stapled Secs Cons of 1 DIF + 1 FSPT + 1 Finance Stock Analysis

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Is it the right time to buy or sell?

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Economic Moat

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Capital Allocation

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Charter Hall Long WALE REIT Has a Strong Existing Portfolio, and Remains Acquisitive

Alexander Prineas Equity Analyst

Business Strategy and Outlook

| Alexander Prineas |

Charter Hall Long Wale REIT’s portfolio is high quality. Liquor retailer and pub operator Endeavour Group is the largest tenant at 18% of passing income. At least four fifths of passing income comes from tenants we view as unlikely to miss a rent payment, including Endeavour Group, government agencies, Telstra, BP, Inghams, Coles, Metcash, Arnotts, Bunnings, Westpac, and Linfox. Income over the lease term is relatively assured, however, an uncertainty is growth by acquisition. External fund manager Charter Hall has a strong track record and good relationships with tenants. But continued acquisitions could dilute CLW’s existing portfolio, particularly as long-WALE assets are in high demand at present, and thereby come with a hefty price tag.

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Charter Hall Long WALE REIT Stapled Secs Cons of 1 DIF + 1 FSPT + 1 Finance's Company Profile

Business Description

Charter Hall Long WALE REIT is a diversified property trust, with assets in Australia and New Zealand. Occupancy is 99.9%, and weighted average lease length is a long 12.2 years (as at Dec. 31, 2021). More than half the REIT’s leases are triple-net, where tenants pay rates, maintenance and most outgoings. The REIT’s circa AUD 7 billion portfolio of 550 properties spans offices, industrial, retail, social infrastructure, and agricultural logistics assets, with more than three quarters of the portfolio on Australia’s eastern seaboard. Leases are evenly spread between CPI-linked (3.3% average rent increase in 2021) and fixed uplifts (average 3.1% uplift in 2021). The tenant profile is strong, with 99% of occupiers being government, multi-national or national businesses.

Contact
No. 1 Martin Place, Level 20
Sydney, NSW, 2000, Australia
T +61 286519000
Industry REIT - Diversified
Most Recent Earnings
Fiscal Year End Jun 30, 2022
Stock Type
Employees