Company Reports

In fiscal 2026, Charter Hall Long WALE REIT delivered both operating earnings and distributions of AUD 25.5 cents per security, up 2% from last year. Management expects flat operating earnings and distributions in fiscal 2027.

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.

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 Dec. 31, 2025, 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: 50% of the properties are retail (pubs, service stations and department stores mostly), a quarter 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.

Charter Hall Long WALE established a new AUD 2 billion secured debt platform across 10 lenders, replacing the existing unsecured debts.

Charter Hall Long WALE's operating earnings rose 2% in the first half of fiscal 2026, to AUD 12.8 cents per security. Underpinning the result is like-for-like net property income growth of 3% and incremental earnings from prior-period acquisitions, partly offset by higher finance costs.

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 Dec. 31, 2025, 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: 50% of the properties are retail (pubs, service stations and department stores mostly), a quarter 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.

Alcohol consumption has gained growth momentum in the September quarter, following a slight improvement in June after several quarters of consecutive declines. Household spending on alcoholic drinks rose 2% year on year, according to the latest data release.

Charter Hall Long WALE REIT delivered operating earnings per security of AUD 0.25 in fiscal 2025, down 4% from last year. Following three consecutive years of decline, management expects operating earnings to increase in fiscal 2026.

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 9.3 years as of June 30, 2025 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: 50% of the properties are retail (pubs, service stations and department stores mostly), a quarter 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.

We initiate coverage on Charter Hall Long WALE REIT. The diversified REIT specializes in managing long lease assets across retail, industrial, office, and social infrastructure sectors.

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 10 years as of Dec. 31, 2024 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: 50% of the properties are retail (pubs, service stations and department stores mostly), a quarter 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.

As foreshadowed in our research report published on June 24, 2024, we cease coverage on Charter Hall Long Wale REIT. We provide analyst research and ratings on more than 1,600 companies globally and periodically adjust our coverage according to client demand, investor interest, and staffing.

We will discontinue analyst coverage of Charter Hall Long WALE REIT on or about July 15, 2024. Accordingly, we place Charter Hall Long WALE REIT under review. We provide analyst research and ratings on over 1,600 companies globally and periodically adjust our coverage according to investor interest and staffing.

Charter Hall Long Wale REIT’s portfolio is high-quality. Liquor retailer and pub operator Endeavour Group is the largest tenant at 19% 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, and Westpac. External fund manager Charter Hall has a strong record and good relationships with tenants. Continued acquisitions may have diluted CLW’s portfolio, particularly as long-WALE assets have been in high demand and thereby came with a hefty price tag. CLW has been acquisitive, buying properties and other REITs by using debt and issuing new equity. It issued about AUD 386 million of new equity in fiscal 2019 to fund acquisitions, including various offices, a bus terminal in Eagle Farm, Brisbane, and several agricultural logistics properties from Inghams on a sale-and-leaseback arrangement. In fiscal 2020, it issued AUD 850 million of equity to purchase telco exchanges, a Brisbane office building, Telstra’s Melbourne headquarters, and BP service stations in Australia. In fiscal 2021, it issued AUD 626 million of equity, using the proceeds to purchase Telstra exchanges, a portfolio of offices, and BP sites in New Zealand, taking its BP portfolio to about AUD 500 million in Australia and New Zealand. CLW issued substantial new equity every year since its 2016 listing, with the number of securities on issue tripling from about 208 million in June 2017 to 720 million at March 2022. Higher interest rates are likely to slow the group’s expansion and weigh on earnings, given the group’s relatively high gearing.

We keep our fair value estimate unchanged at AUD 5.10 per security after no-moat Charter Hall Long Wale REIT released half-year earnings that were broadly in line with our expectations. The REIT delivered operating earnings and distributions of AUD 0.13 per security in the first half of fiscal 2024 and reaffirmed the full-year distribution guidance of AUD 0.26 per security. This is in line with our unchanged estimate and equates to a 6.7% yield at the current security price.

Charter Hall Long Wale REIT’s portfolio is high-quality. Liquor retailer and pub operator Endeavour Group is the largest tenant at 19% 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, and Westpac. External fund manager Charter Hall has a strong record and good relationships with tenants. Continued acquisitions may have diluted CLW’s portfolio, particularly as long-WALE assets have been in high demand and thereby came with a hefty price tag. CLW has been acquisitive, buying properties and other REITs by using debt and issuing new equity. It issued about AUD 386 million of new equity in fiscal 2019 to fund acquisitions, including various offices, a bus terminal in Eagle Farm, Brisbane, and several agricultural logistics properties from Inghams on a sale-and-leaseback arrangement. In fiscal 2020, it issued AUD 850 million of equity to purchase telco exchanges, a Brisbane office building, Telstra’s Melbourne headquarters, and BP service stations in Australia. In fiscal 2021, it issued AUD 626 million of equity, using the proceeds to purchase Telstra exchanges, a portfolio of offices, and BP sites in New Zealand, taking its BP portfolio to about AUD 500 million in Australia and New Zealand. CLW issued substantial new equity every year since its 2016 listing, with the number of securities on issue tripling from about 208 million in June 2017 to 720 million at March 2022. Higher interest rates are likely to slow the group’s expansion and weigh on earnings, given the group’s relatively high gearing.

The federal government’s migration review was released on Dec. 11 and it suggests high population growth remains the status quo. The review tinkers with various visa rules, but contains no major reduction in migrant numbers, suggesting high migration will persist, relative to precoronavirus levels and versus other developed countries.

Charter Hall Long Wale REIT’s, or CLW's, portfolio is high-quality. Liquor retailer and pub operator Endeavour Group is the largest tenant at 19% 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, and Westpac. External fund manager Charter Hall has a strong track record and good relationships with tenants. Continued acquisitions may have diluted CLW’s portfolio, particularly as long-Wale assets have been in high demand, and thereby came with a hefty price tag. CLW has been acquisitive, buying properties and other REITs, using debt, and issuing new equity. It issued about AUD 386 million of new equity in fiscal 2019 to fund acquisitions, including various offices, a bus terminal in Eagle Farm, Brisbane, and several agricultural logistics properties from Inghams on a sale-and-leaseback arrangement. In fiscal 2020 it issued AUD 850 million of equity to purchase telco exchanges, a Brisbane office building, Telstra’s Melbourne headquarters, and BP service stations in Australia. In fiscal 2021 it issued AUD 626 million of equity, using the proceeds to purchase Telstra exchanges, a portfolio of offices, and BP sites in New Zealand, taking its BP portfolio to about AUD 500 million in Australia and New Zealand. CLW issued substantial new equity every year since its 2016 listing, with the number of securities on issue tripling from about 208 million in June 2017 to 720 million at March 2022. Higher interest rates are likely to slow the group’s expansion and weigh on earnings, given the group’s relatively high gearing.

Charter Hall Long Wale REIT's, or CLW's, market update this week revealed a 4.1% valuation increase for its BP Australia portfolio and a 2.2% uplift for its Long Wale Investment Partnership pub assets. These assets collectively account for about one-fifth of CLW’s property portfolio. The increases were driven by inflation-linked rent increases, based on the recently released September Consumer Price Index numbers. We had previously highlighted that CPI clauses in the leases could provide some support to valuations, and this news vindicates that view. We had also previously noted that CLW’s gearing is higher than we’d prefer, so the valuation increases provide welcome additional headroom with respect to its debt covenants. We still think the REIT has too much debt, and the devaluation of other assets in the portfolio remains a risk.

Charter Hall Long Wale REIT’s, or CLW's, portfolio is high-quality. Liquor retailer and pub operator Endeavour Group is the largest tenant at 19% 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, and Westpac. External fund manager Charter Hall has a strong track record and good relationships with tenants. Continued acquisitions may have diluted CLW’s portfolio, particularly as long-Wale assets have been in high demand, and thereby came with a hefty price tag. CLW has been acquisitive, buying properties and other REITs, using debt, and issuing new equity. It issued about AUD 386 million of new equity in fiscal 2019 to fund acquisitions, including various offices, a bus terminal in Eagle Farm, Brisbane, and several agricultural logistics properties from Inghams on a sale-and-leaseback arrangement. In fiscal 2020 it issued AUD 850 million of equity to purchase telco exchanges, a Brisbane office building, Telstra’s Melbourne headquarters, and BP service stations in Australia. In fiscal 2021 it issued AUD 626 million of equity, using the proceeds to purchase Telstra exchanges, a portfolio of offices, and BP sites in New Zealand, taking its BP portfolio to about AUD 500 million in Australia and New Zealand. CLW issued substantial new equity every year since its 2016 listing, with the number of securities on issue tripling from about 208 million in June 2017 to 720 million at March 2022. Higher interest rates are likely to slow the group’s expansion and weigh on earnings, given the group’s relatively high gearing.