Key Highlights

  • FY26 distributions were 25.5 cents per security, and FY27 guidance is also 25.5 cents.
  • Operating earnings were $181.9 million, or 25.5 cents per security, up 2.0%.
  • The portfolio has a weighted average lease expiry of 9.2 years and occupancy of 99.9%.
  • The approximate yield is near 7.8%, unfranked, with a reinvestment plan available.

Charter Hall Long WALE REIT (ASX:CLW) announced its full year results for the year ended 30 June 2026 on 13 August 2026, reporting growth in operating earnings and distributions. Charter Hall Long WALE REIT (ASX:CLW) describes itself as Australia's largest diversified net lease REIT. It owns property leased on long terms to government, ASX-listed, multinational and national tenants across sectors such as convenience retail, data centres and telecommunications, banking, and food and grocery distribution. Charter Hall WALE Limited acts as responsible entity within the wider Charter Hall group.

In net lease arrangements tenants typically pay most property outgoings, and about 51% of the REIT's leases are triple net. The portfolio has a weighted average lease expiry of 9.2 years and occupancy of 99.9%, and all leases carry annual rent increases, with 54% of reviews linked to CPI. Tenants named in the release include the Commonwealth Government, Coles Group, Telstra Corporation and Sonic Healthcare. The REIT's earnings and distributions therefore rest on long contracted rent rather than on short-term leasing.

The Dividend Picture

CLW's yield is approximately 7.8% at a price near $3.29, with no franking and a distribution reinvestment plan on offer. The press release states FY26 distributions of 25.5 cents per security, equal to operating earnings per security of 25.5 cents, so the payout was effectively all of operating earnings. Both operating earnings per security and distributions increased 2.0%. FY27 guidance for operating earnings and distributions is 25.5 cents each, so the REIT indicates no growth in the distribution next year.

Understanding the Dividend Data for Charter Hall Long WALE REIT

At a share price of approximately $3.29, the approximate yield is 7.8%. There is no franking, so the grossed-up yield is the same as the cash yield and no tax credits are attached to the payments. A distribution reinvestment plan is available, which allows holders to take additional securities in place of cash. As an illustration of the arithmetic only, a holding worth $10,000 at that price and yield would correspond to roughly $775 of cash distributions over a year before tax, calculated from the stated percentage. FY27 guidance of 25.5 cents equals FY26, so the trailing and forward amounts match. Yields of this kind depend on the share price on the day and on which payments are counted, so they move as the share price changes and are not a forecast.

FY26 Results

Operating earnings were $181.9 million, up 2.0% on the prior period, and statutory earnings were $275.9 million. Net tangible assets were $4.71 per security, up 2.6% from 30 June 2025. Average annual net property income growth was 3.1%. Independent valuation of the whole portfolio during the year produced a net uplift of $188 million, or 3.2%.

Portfolio Quality

The portfolio had a weighted average lease expiry of 9.2 years, which the REIT says provides long-term income security, and occupancy of 99.9%, which it describes as a near-100% record since IPO. The release notes practical completion of a cold storage expansion at a Coles distribution centre, and a post balance date acquisition of a 25% interest in a Sonic Healthcare property in Brisbane.

Balance Sheet

Gearing was 27.5% on a pro forma basis, at the lower end of a 25% to 35% target range. The REIT completed a $2.0 billion refinance of its balance sheet debt with a new secured debt platform with extended maturities, improved pricing and enhanced covenants. New hedging means average forecast debt hedged is 85% in FY27, which reduces exposure to interest rate swings.

Capital Recycling and Lease Quality

The REIT divested $324 million of assets at an average yield of 4.7% and a lease expiry of 8.4 years, and recycled proceeds into $572 million of new investments at an average yield of 7.4% and a lease expiry of 13.5 years. It describes the net $248 million of transaction activity as earnings accretive and as lengthening the portfolio's lease expiry, with new leases to tenants such as the Commonwealth Government, Coles Group, Telstra and Sonic Healthcare. About 51% of leases are triple net, which reduces capital expenditure leakage, and all leases have annual rent increases, with 54% of rent reviews linked to CPI.

Income Security

The REIT's chief executive describes the portfolio as resilient, with 99.9% occupancy, a 9.2 year weighted average lease expiry and 99% of income from government, ASX-listed, multinational and national tenants. The practical completion of the cold storage expansion at the Coles distribution centre in Perth resets the lease term to 12 years across the whole facility. These features underpin the guidance of an unchanged distribution, though flat guidance also means the distribution does not grow in FY27.

How the Payout Measure Works

The measure that matters for this dividend is operating earnings. Charter Hall reports operating earnings that exclude fair value and other non-operating items. Operating earnings of 25.5 cents per security equal the distribution, so there is no retained cushion in that measure, though the balance sheet and valuation gains are separate. Investors comparing the figure with a yield should remember that the yield is calculated on a price, while the payout compares the dividend with the company's own earnings measure, so the two answer different questions. A high payout can leave little retained cash, while a low payout can leave room for growth or debt reduction, and the right balance depends on the business.

Key Dates and Timing

The results were released on 13 August 2026. The release gives FY27 guidance of 25.5 cents, and its extract does not give a payment date. Dividend and distribution amounts can change from period to period, and the announcement is the source for amounts and dates. Anyone relying on a date should confirm it against the company's notice, because record dates and payment dates vary by security.