4 ASX 200 REITs With Indicative Distribution Yields Above 7%

Seven per cent is a round number that many income investors keep in the back of their minds, and in September 2026 only four ASX 200 names clear it: Arena REIT (ASX:ARF) at 8.95%, HomeCo Daily Needs REIT (ASX:HDN) at 7.85%, Waypoint REIT (ASX:WPR) at 7.53% and Charter Hall Long WALE REIT (ASX:CLW) at 7.52%. that many income investors keep in the back of their minds, and in September 2026 only a handful of ASX 200 names clear it. Among the ten high-yield names in our list, four carry indicative yields above 7% on their latest confirmed full-year payouts, and all four are real estate Investment trusts: Arena REIT (ASX:ARF), HomeCo Daily Needs REIT (ASX:HDN), Waypoint REIT (ASX:WPR) and Charter Hall Long WALE REIT (ASX:CLW). Each looks attractive on the headline figure, but each tells a different story about Lease terms, Debt and guidance for the year ahead. The yields below are our calculation, dividing each trust's latest full-year distribution by its reference price after the close on Wednesday 23 September 2026, and they will move as security prices do.

Source note: Dividend and distribution amounts are the latest confirmed full-year payouts from official ASX company announcements. Reference prices are from an S&P/ASX 200 component snapshot after the close on 23 September 2026. Indicative Yield = annual payout ÷ reference price (our calculation, not an ASX-published figure); cash yields exclude franking credits.

*Waypoint REIT reports on a calendar-year basis; FY2025 (year to 31 December 2025) is its latest completed full year.

Why are 7%-plus distribution yields attracting attention?

Following the June–August reporting season, investors have confirmed full-year payouts and fresh guidance to work with across the ASX. Property trusts attract particular interest because their income is anchored in leases, and because a REIT typically passes most of its income through to securityholders as a distribution rather than retaining it. Those distributions are not dividends and carry no franking credits, so comparing them with each other is more meaningful than comparing them with franked company payouts.

Why do only four names clear the 7% bar?

The next name down is Harvey Norman Holdings Limited (ASX:HVN), a company paying fully franked dividends, at 6.58%, short of 7%. No ordinary company in the list reaches the threshold. Within the four, the gap between the third and fourth places is tiny: Waypoint at 7.53% and Charter Hall Long WALE at 7.52% are separated by one hundredth of a percentage point, close enough that a small movement in either security price could swap their order on any given day.

What sits behind each of the four?

Arena REIT (ASX:ARF) — 8.95%

Arena's 19.25c per security FY2026 distribution, paid in four quarterly instalments of 4.8125c and up 5.5% on FY2025, gives the highest indicative distribution yield in the list at 8.95%. On paper the portfolio is long-dated and fully let: 274 early learning centres, 10 healthcare properties and 23 development sites, a weighted average lease expiry (WALE) of about 17.5 years, 100% occupancy and gearing of 24.5%.

The trailing number, however, looks backwards. In August 2026 tenant Edge Early Learning, which contributes about 14% of income through 31 leases, failed to pay rent and later entered voluntary administration. Arena now guides to an FY2027 distribution of at least 18.0c, lower than FY2026, on the assumption of no Edge rent from 1 August 2026. In other words, the 8.95% figure is based on a payout the trust does not currently expect to repeat, a point that sets Arena apart from the other three.

HomeCo Daily Needs REIT (ASX:HDN) — 7.85%

HomeCo Daily Needs owns convenience-focused centres anchored by supermarkets and everyday services, where occupancy stands at 99%. Its 8.60c distribution sat below FY2026 Funds From Operations (FFO) of 9.0c, giving some headroom. For FY2027 it has guided to FFO of 8.8c and an unchanged 8.6c distribution, holding the payout steady even as finance costs rise. Gearing of 35.7% sits within its 30–40% target range, though it is the highest of the four.

Waypoint REIT (ASX:WPR) — 7.53%

Waypoint's portfolio of about 395 service station and convenience properties, worth about $2.86bn, is leased largely to Viva Energy. Because its financial year is the calendar year, its latest full-year figure is FY2025's 16.64c, paid in quarterly amounts of 4.12c, 4.12c, 4.20c and 4.20c and equal to distributable Earnings per security, which rose 1.0%. WALE is 6.4 years, the shortest of the four, occupancy is 99.9% and gearing 32.7% against a 30–40% target. For calendar 2026 Waypoint has guided to distributable earnings of 17.14c per security, up 3%; that is an earnings forecast, not a distribution figure. It released its 1H26 result on 27 August 2026.

Charter Hall Long WALE REIT (ASX:CLW) — 7.52%

Charter Hall Long WALE is the broadest of the four, with about 505 properties worth about $6.1bn spread across convenience retail, industrial and logistics, data centres, social infrastructure and office. Its FY2026 distribution of 25.50c matched operating earnings of 25.5c, and FY2027 guidance holds both at 25.5c. WALE is 9.2 years, occupancy 99.9% and gearing 27.5%, inside a 25–35% target.

How durable are these distributions?

Coverage and debt tell much of the story. HomeCo paid less than it earned in FFO; Waypoint and Charter Hall Long WALE paid out their full earnings, leaving little buffer; and Arena's forward guidance already reflects a lost tenant. Gearing ranges from Arena's 24.5% to HomeCo's 35.7%, with HomeCo, Waypoint and Charter Hall Long WALE all inside their target ranges, and occupancy is 99% or higher across the four. Guidance is flat for HomeCo and Charter Hall Long WALE, lower for Arena, and framed as earnings growth for Waypoint.

What risks could affect future distributions?

Tenant concentration stands out: Edge at Arena and Viva Energy at Waypoint. Higher finance costs, which HomeCo has already flagged, can squeeze distributable income. Weaker property valuations can push gearing towards the top of target ranges. Shifts in the childcare, grocery and fuel industries could also change tenants' capacity to pay rent.

Why doesn't a yield above 7% automatically mean a better investment?

The 7% line is arbitrary. A yield above it may reflect a market that doubts the payout, as Arena's guidance suggests, rather than superior income. A trailing yield describes last year's distribution at today's price; it is not a forecast, and it changes whenever the price does.

What should investors monitor next?

Investors may want to monitor the Edge administration and its effect on Arena's income, HomeCo's finance costs against its flat guidance, Waypoint's quarterly distributions and calendar-2026 result, and whether Charter Hall Long WALE delivers its 25.5c. Given how close Waypoint and Charter Hall Long WALE sit, their relative ranking may also change with ordinary price movements.

Key Insights / Key Takeaways

Four ASX 200 REITs clear 7% on trailing figures, and none of the ordinary companies do. Beyond that shared threshold, they differ markedly: one has signalled a lower payout, one relies on a single dominant tenant, one carries the most gearing, and one spreads its risk across hundreds of properties. The threshold is a filter for research, not a conclusion about quality.