Charter Hall Long WALE REIT (CLW) H2 2025 earnings summary

Executive summary

• Portfolio valued at AUD 5.5 billion, diversified by tenant, industry, geography, and property type, with a 99.9% occupancy rate and a WALE of 9.3 years, secured by blue-chip tenants.

• FY25 operating earnings and distributions per security were AUD 0.25 (25.0 cents), in line with guidance.

• Portfolio curation included AUD 340–350 million of divestments and AUD 12 million of acquisitions, supporting a AUD 50 million security buyback and debt reduction.

• 54% of income derived from triple net lease properties, providing stable cash flow and reduced landlord obligations.

• 100% of the portfolio independently valued, with a net property valuation decrement of AUD 9 million, fully offset by a second-half uplift.

Financial highlights

• Like-for-like net property income grew 3% year-over-year, offset by reduced income from asset divestments.

• Operating EPS and DPS both at 25.0 cents, down 3.8% year-over-year.

• NTA per security at 30 June 2025 was AUD 4.59, down from AUD 4.66, a 1.5% decline due to mark-to-market derivative movements.

• Operating earnings fell 5.0% year-over-year to AUD 178.6 million.

• Statutory earnings rebounded to AUD 118.3 million from a prior year loss, driven by smaller fair value movements.

Outlook and guidance

• FY26 operating earnings and distribution per security forecast at AUD 0.255 (25.5 cents), a 2% increase, representing a 6.1% distribution yield.

• No further transaction activity is included in FY26 guidance beyond announced acquisitions.

• Expectation of valuation growth and potential cap rate compression as interest rates decline.

• Portfolio and capital structure positioned for growth, with 99.9% occupancy and long WALE.