Charter Hall Long WALE REIT (CLW) H1 2026 earnings summary

Executive summary

• Operating earnings per security for the half-year were 12.75 cents (AUD 0.1275), up 2% year-over-year, with statutory profit surging to $153.6 million, driven by strong property revaluations and early adoption of AASB 18.

• Portfolio value increased to $6.0bn, with a 2.8% valuation uplift and 99.9% occupancy, underpinned by blue-chip and government tenants and a WALE of 9.2 years.

• Like-for-like net property income grew 3% year-over-year, and 86% of the portfolio was independently valued.

• Distributions per security for the half were 12.75 cents, up from 12.50 cents year-over-year.

• 52% of lease rent reviews are CPI-linked, supporting long-term income security.

Financial highlights

• Net tangible assets per security increased 2% to $4.68 as of 31 December 2025, driven by positive revaluations.

• Like-for-like net property income grew 3% year-over-year to $147.0m in 1H FY26.

• Finance costs rose 13.6% due to higher average debt drawn and increased cost of debt.

• Statutory earnings for 1H FY26 were $153.6m, up from $49.7m in 1H FY25, mainly due to fair value movements.

• Net fair value gain on investment properties was $118.5 million, compared to a loss of $15.3 million in the prior year.

Outlook and guidance

• FY26 guidance reaffirmed for operating earnings and distribution per security at 25.5 cents, representing 2% growth over FY25.

• Forecast distribution yield for FY26 is 6.8% based on the latest closing price.

• Portfolio benefits from high proportion of CPI and CPI+ linked rental escalators and interest rate hedging.