Charter Hall Long WALE REIT (CLW) H2 2024 earnings summary

Executive summary

• Portfolio valued at AUD 5.8 billion with 540 properties, 99.9% occupancy, and a WALE of 10.5 years, leased primarily to blue-chip and government tenants.

• FY24 operating earnings per security were AUD 0.26 (26 cps), matching guidance, with 4.7% like-for-like net property income growth.

• Completed AUD 762 million in asset divestments, reducing near-term lease expiry risk and strengthening the balance sheet.

• Moody’s reaffirmed Baa1 investment-grade credit rating, reflecting a strengthened credit profile.

• Announced a buyback of up to AUD 50 million of securities to capitalize on trading discount to NTA.

Financial highlights

• Operating earnings and distributions per security were both AUD 0.26 (26 cps), in line with guidance.

• Net property income increased by 2.5% year-over-year, driven by 4.7% like-for-like rental growth.

• NTA per security decreased 17.2% to AUD 4.66 due to a net property valuation decrement of AUD 626 million.

• Weighted average cost of debt rose to 4% year-over-year.

• Balance sheet gearing reduced to 30.1% from 34.5%, within the 25%-35% target range.

Outlook and guidance

• FY25 operating earnings and distribution guidance set at AUD 0.25 (25 cps) per security, representing a 7.2% yield on the closing price.

• Guidance incorporates all announced asset sales, current valuations, and hedging positions; buyback not included in guidance.

• Guidance reflects full-year impact of FY24 asset disposals and higher base interest rates.