Key Highlights

  • Charter Hall Long WALE REIT (ASX:CLW) delivered FY26 operating Earnings of $181.9 million, or 25.5 cents per security, representing 2.0% growth.
  • Portfolio occupancy remained at 99.9%, with a weighted average Lease expiry of 9.2 years and 99% of income leased to government, listed, multinational and national tenants.
  • The REIT completed $248 million of net property transactions, recycling Capital from selected disposals into longer-duration Assets across defensive sectors.
  • CLW strengthened its Balance Sheet through a $2.0 billion refinancing and expects FY27 operating earnings and distributions of 25.5 cents per security.

Charter Hall Long WALE REIT (ASX:CLW) reported FY26 operating earnings of $181.9 million, equivalent to 25.5 cents per security and an increase of 2.0% from the prior corresponding period. Distributions also increased 2.0% to 25.5 cents per security.

Statutory earnings were $275.9 million, while net tangible assets increased 2.6% to $4.71 per security. The result was supported by portfolio income growth and an increase in property values during the financial year.

Average annual net property income growth was 3.1%, reflecting contracted rental increases across the portfolio. All leases include annual rent increases, while 54% of rent reviews are linked to the Consumer Price Index.

Portfolio Maintains High Occupancy and Long Lease Duration

CLW finished FY26 with a portfolio of 505 properties valued at approximately $6.1 billion. Occupancy was 99.9%, maintaining the REIT’s near-full occupancy record since listing.

The portfolio’s weighted average lease expiry was 9.2 years, providing a relatively long contractual period for rental income. Around 99% of income is leased to government, ASX-listed, multinational and national tenants.

The portfolio spans convenience retail, industrial and logistics, data centres, social infrastructure and office assets. Defensive tenant exposures include government, grocery and distribution, telecommunications, banking, food Manufacturing and healthcare.

Property Valuations Support Net Tangible Assets

CLW independently valued its entire portfolio during FY26. The process resulted in a net property valuation increase of $188 million, equivalent to 3.2%.

The portfolio’s weighted average Capitalisation rate was 5.4% at 30 June 2026. The valuation movement contributed to the increase in NTA per security to $4.71.

The portfolio changes during the year also focused on increasing exposure to assets with longer lease terms and tenants operating in sectors considered important to essential services and infrastructure.

Capital Recycling Targets Longer Lease Income

During FY26, CLW completed $324 million of asset disposals at an average Yield of 4.7% and an average WALE of 8.4 years. This was offset by $572 million of new investments at an average yield of 7.4% and an average WALE of 13.5 years.

The resulting $248 million of net transaction activity included an increased Investment in a Telco Exchanges portfolio leased to Telstra, as well as a 25% interest in a Brisbane pathology laboratory leased to Sonic Healthcare under a 20-year triple-net lease.

The REIT also divested selected Bunnings properties, the Club Waterford Hotel and a portfolio of industrial and waste transfer properties leased to Veolia and Cleanaway.

Refinancing Strengthens Balance Sheet

CLW completed a $2.0 billion refinancing during FY26 and transitioned its balance sheet Debt to a new secured debt platform. The refinancing extended weighted average debt Maturity to 4.1 years, with maturities staggered through FY32.

Average Credit margins across balance sheet debt facilities declined by 20 basis points to 1.2%. The REIT also diversified its lending group across 10 counterparties.

Balance sheet gearing stood at 27.5% at 30 June 2026, within CLW’s target range of 25% to 35%. New interest-rate hedging means average forecast debt hedged is expected to be 85% during FY27.

FY27 Earnings Guidance Maintained

CLW enters FY27 with guidance for operating earnings of 25.5 cents per security and distributions of 25.5 cents per security, subject to unforeseen events and changes in available information.

The REIT intends to continue active portfolio management, including tenant retention, asset management, strategic partnerships and selective investment activity. The completed refinancing and hedging program provide a framework for managing funding requirements while maintaining the long-term lease profile of the portfolio.

Conclusion

Charter Hall Long WALE REIT’s FY26 result reflects continued growth in operating earnings and distributions alongside a portfolio characterised by near-full occupancy and long lease durations. The REIT also used the year to recycle capital into assets with longer WALEs and exposure to government, healthcare, telecommunications and other defensive sectors. The $2.0 billion refinancing and higher level of interest-rate hedging further reshape the balance sheet ahead of FY27. With operating earnings and distributions both guided at 25.5 cents per security, the company’s near-term focus remains on maintaining income quality, managing capital efficiently and continuing selective portfolio curation.