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Highlights:

  • Charter Hall Long WALE REIT reports FY25 operating earnings of 25.0 cents per security
  • CLW completes AUD 338.8 million in divestments and announces AUD 229.3 million in post-year acquisitions
  • CLW portfolio reports 99.9% occupancy and WALE of 9.3 years as at 30 June 2025

Charter Hall Long WALE REIT (ASX:CLW) has released its financial and operational results for the year ended 30 June 2025 (FY25), reporting operating earnings of AUD 178.6 million, equivalent to 25.0 cents per security. A full-year distribution of 25.0 cents per security has been declared. The REIT’s net tangible assets (NTA) per security declined marginally to AUD 4.59, from AUD 4.66 in the prior year, reflecting a 1.5% decrease primarily due to the movement in the mark-to-market value of interest rate swaps. Statutory earnings came in at AUD 118.3 million.

The portfolio continued to generate like-for-like Net Property Income growth of 3.0%, with occupancy at 99.9% and a weighted average lease expiry (WALE) of 9.3 years. These metrics were supported by a combination of long-term leases and the predominance of triple-net lease structures across the portfolio. During FY25, AUD 338.8 million in net property divestments were completed, including the sale of the Inghams agri-logistics portfolio and several partial and full interests in commercial and retail assets. These divestments were aligned with CLW’s strategy of curating the portfolio and recycling capital.

At the same time, the REIT announced post-balance date acquisitions totalling AUD 229.3 million, comprising Commonwealth Government-leased social infrastructure assets. These included:

  • A 49.9% interest in the Department of Defence facility in Canberra for AUD 44 million (passing yield: 14.9%)
  • The Australian Border Force facility in Melbourne for AUD 62 million (lease term: 11.4 years)
  • An incremental stake in the Geoscience Australia building, lifting ownership from 25% to 33.3%

Across FY25, CLW also acquired the remaining 49.9% interest in the Westpac building in Kogarah, bringing total ownership to 100%, and divested multiple hotel and retail assets. The entire portfolio was independently revalued during the year, resulting in a net decline of AUD 9 million, or 0.1% of total value. The weighted average capitalisation rate remained steady at 5.4%, reflecting a stabilisation in asset valuations.

In terms of capital management, CLW reported balance sheet gearing of 31.4%, within the target range of 25%–35%. Look-through gearing stood at 38.8%. The REIT refinanced AUD 310 million in debt, extending maturities to FY30, and entered into AUD 715 million of new interest rate swaps, resulting in 89% of debt hedged as at 30 June 2025.

During the year, CLW also completed a AUD 50 million on-market security buyback. Moody’s reaffirmed the REIT’s Baa1 investment grade rating in December 2024. For FY26, CLW has provided guidance of 25.5 cents per security for both operating earnings and distributions, representing a forecast distribution yield of 6.1% based on the prior day’s closing price.

CLWA is trading 2.15% higher at AUD 4.2700 per share as of 6 August 2025.