Highlights

  • FY26 operating Earnings were $181.9 million, equal to 25.5 cents per security.
  • The REIT ended FY26 with 99.9% portfolio occupancy and a 9.2-year weighted average Lease expiry.
  • Independent portfolio valuations produced a net uplift of $188 million during FY26.
  • The trust invested $572 million and sold $324 million of Assets as part of portfolio recycling.
  • FY27 guidance is for operating earnings and distributions of 25.5 cents per security.

Charter Hall Long WALE REIT (ASX:CLW) is an Australian real estate Investment trust focused on high-quality properties predominantly leased to corporate and government tenants on long-term leases. Its FY26 result highlighted income stability, near-full occupancy, valuation gains and active portfolio recycling, while FY27 guidance points to a steady earnings profile as management continues to balance asset quality, long lease duration and funding discipline.

FY26 Earnings and Portfolio Position

For the year ended 30 June 2026, CLW (ASX:CLW) reported operating earnings of $181.9 million, or 25.5 cents per security. Statutory earnings were $275.9 million, reflecting the impact of property valuation movements alongside recurring operating performance. The FY26 distribution was also 25.5 cents per security. Net tangible assets were $4.71 per security, while Balance Sheet gearing stood at 27.5%, within the trust’s stated 25% to 35% target range. Average annual net property income growth was 3.1%.

Long Lease Profile Supports Income Visibility

At 30 June 2026, CLW’s portfolio comprised 505 properties valued at $6.1 billion. Occupancy was 99.9% and the weighted average lease expiry was 9.2 years. The portfolio was independently valued during FY26, resulting in a net valuation uplift of $188 million, or 3.2%. The weighted average Capitalisation rate was 5.4%. The trust also reported that all leases include annual rent increases, with 54% of rent reviews linked to CPI.

Portfolio Recycling and Funding

During FY26, CLW (ASX:CLW) completed $572 million of new investments at an average Yield of 7.4% and an average lease expiry of 13.5 years. It also sold $324 million of assets at an average yield of 4.7%, resulting in net transaction activity of $248 million. The trust refinanced into a $2.0 billion secured Debt platform, reduced its average Credit Margin to 1.2% and reported a weighted average debt Maturity of 4.1 years. Around 85% of forecast FY27 debt was hedged.

FY27 Guidance Keeps Earnings Steady

For FY27, CLW guided to operating earnings of 25.5 cents per security and a distribution of 25.5 cents per security. The guidance is unchanged from FY26 on a per-security basis. This places emphasis on the trust’s contracted rent profile, portfolio recycling and funding settings rather than on near-term earnings expansion. With gearing inside the stated target range and a long lease profile, future results will depend on rental growth, transaction activity, financing costs and property valuation conditions.

Key Insights

CLW enters FY27 with a large diversified property portfolio, near-full occupancy and long lease duration. FY26 portfolio recycling shifted capital toward higher-yielding assets with longer lease terms, while refinancing extended funding visibility. The trust’s FY27 guidance indicates a focus on maintaining operating earnings and distributions rather than accelerating per-security growth. Property valuations, interest rates, capitalisation rates and future transaction activity remain important factors for investors assessing the REIT’s financial performance.