Charter Hall Long WALE REIT (AU:CLW)
ASX:CLW
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Charter Hall Long WALE REIT
(Sydney:CLW)
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Rating:54Neutral
Price Target:
AU$4.00
▲(7.53% Upside)
Action:ReiteratedDate:02/12/26
Overall score reflects mixed fundamentals (declining revenue and uneven profitability but steadier cash flow), a weak technical trend (below key moving averages with negative momentum), and support from the earnings call (reaffirmed guidance plus strong occupancy/WALE and valuation uplift). The high dividend yield helps, though it is tempered by the P/E level and financing/gearing risks discussed.
Positive Factors
Very long WALE and near‑100% occupancy
A 9.2‑year WALE and 99.9% occupancy provide highly predictable, contracted rental cash flows and low leasing churn. Over a 2–6 month horizon this structural income visibility supports distribution coverage, lowers vacancy risk and cushions earnings versus cyclical tenant demand.
Negative Factors
Rising finance costs
A 13.6% jump in finance costs and a higher look‑through cost of debt compress net income and distribution margins. Over several months elevated funding expenses reduce free cash flow available for reinvestment and make distributions more sensitive to future rate moves despite hedges.
Read all positive and negative factors
Positive Factors
Negative Factors
Very long WALE and near‑100% occupancy
A 9.2‑year WALE and 99.9% occupancy provide highly predictable, contracted rental cash flows and low leasing churn. Over a 2–6 month horizon this structural income visibility supports distribution coverage, lowers vacancy risk and cushions earnings versus cyclical tenant demand.
Read all positive factors
Charter Hall Long WALE REIT (CLW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.47B
Dividend Yield6.14%
Average Volume (3M)1.26M
Price to Earnings (P/E)4.7
Beta (1Y)0.88
Revenue Growth-9.63%
EPS GrowthN/A
CountryAU
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.13
Shares Outstanding715,697,200
10 Day Avg. Volume963,647
30 Day Avg. Volume1,257,385
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.90
Price to Sales (P/S)16.05
P/FCF Ratio16.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$4.07Price Target Upside9.32% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.26
Revenue Forecast (FY)AU$329.70M
Charter Hall Long WALE REIT Business Overview & Revenue Model
Company Description
Charter Hall Long WALE REIT is an Australian Real Estate Investment Trust (REIT) listed on the ASX and investing in high quality Australasian real estate assets that are predominantly leased to corporate and government tenants on long term leases....
How the Company Makes Money
Charter Hall Long WALE REIT generates revenue primarily through rental income from its portfolio of properties leased to high-quality tenants, often on long-term agreements. The company's revenue model is built on acquiring properties that are str...
Charter Hall Long WALE REIT Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial performance: modest earnings and NTA growth, strong like-for-like income growth, near-100% occupancy, a high-quality diversified $6bn portfolio with long WALE, meaningful valuation uplift, improved funding margins and substantial hedging coverage. Management reinforced disciplined capital management (gearing within target, Moody's Baa1 rating) and executed strategic accretive transactions including a 20-year Coles DC and an 18-year WALE office partnership. Key risks discussed include higher finance costs (finance costs +13.6%), look-through gearing (41%) which may limit purely debt-funded growth, tenant transition and leasing risk at select assets (e.g., Telstra Canberra), and sensitivity to elevated market interest rates/hedge levels. On balance, positives (income growth, valuation uplift, occupancy, hedging, and capital management) outweigh the highlighted challenges, but interest rate and gearing considerations remain notable.Positive Updates
Operating Earnings and Distribution Growth
Operating earnings per security of $0.1275 for H1 FY26 (2% growth year-on-year). Reaffirmed FY26 operating earnings and distribution guidance of $0.255 per security, reflecting 2% growth over FY25.
Negative Updates
Higher Finance Costs and Debt Pricing
Finance costs increased 13.6% in the half due to higher average debt drawn to fund transactions and an elevated weighted average cost of debt (~4.4% look-through), reflecting the higher global interest rate environment.
Read all updates
Q2-2026 Updates
Positive
Negative
Operating Earnings and Distribution Growth
Operating earnings per security of $0.1275 for H1 FY26 (2% growth year-on-year). Reaffirmed FY26 operating earnings and distribution guidance of $0.255 per security, reflecting 2% growth over FY25.
Read all positive updates
Company Guidance
Charter Hall Long WALE REIT reaffirmed FY‑26 guidance of operating earnings and distributions of $0.255 per security (2% growth vs FY‑25), implying a c.6.8% distribution yield (based on yesterday’s close); this guidance sits alongside balance sheet gearing of 29.8% (target 25–35%) and look‑through gearing of 41%, a weighted average cost of debt of ~4.4% (look‑through debt drawn $2.5bn; total look‑through facilities $3.0bn; weighted average debt maturity 3.4 years), and c.80% hedging coverage for the remainder of FY‑26 (look‑through hedges $1.8bn at an average fixed rate of 2.6%; $1.1bn of new hedges established). Management cites portfolio strength supporting guidance: 99.9% occupancy, 9.2‑year WALE, 3% like‑for‑like NPI growth, NTA $4.68 (+2% since June), and a $139m valuation uplift (2.8%) on 86% of the portfolio.Charter Hall Long WALE REIT Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 159.10M | 181.62M | 217.92M | 222.51M | 219.70M | 154.60M |
| Gross Profit | 65.31M | 124.48M | 150.73M | 157.21M | 159.48M | 112.96M |
| EBITDA | 238.59M | 184.49M | -426.97M | -128.62M | 222.20M | 110.37M |
| Net Income | 220.57M | 118.28M | -510.88M | -188.99M | 911.90M | 618.31M |
Balance Sheet | ||||||
| Total Assets | 5.35B | 4.93B | 5.25B | 6.20B | 6.48B | 4.69B |
| Cash, Cash Equivalents and Short-Term Investments | 24.27M | 55.37M | 22.68M | 19.68M | 19.00M | 76.97M |
| Total Debt | 1.84B | 1.53B | 1.70B | 1.94B | 1.83B | 1.34B |
| Total Liabilities | 2.01B | 1.67B | 1.88B | 2.13B | 2.02B | 1.41B |
| Stockholders Equity | 3.34B | 3.26B | 3.37B | 4.07B | 4.46B | 3.28B |
Cash Flow | ||||||
| Free Cash Flow | 178.54M | 172.11M | 185.18M | 231.06M | 870.83M | 162.30M |
| Operating Cash Flow | 178.54M | 172.11M | 185.18M | 179.68M | 187.67M | 162.30M |
| Investing Cash Flow | -266.01M | 309.45M | 260.12M | -51.84M | -683.16M | -1.09B |
| Financing Cash Flow | 85.40M | -448.87M | -444.46M | -127.16M | 437.52M | 970.75M |
Charter Hall Long WALE REIT Technical Analysis
Negative
3.72
Price Trends
3.73
Negative
3.91
Negative
4.06
Negative
Market Momentum
-0.09
Positive
35.12
Neutral
39.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CLW, the sentiment is Negative. The current price of 3.72 is above the 20-day moving average (MA) of 3.57, below the 50-day MA of 3.73, and below the 200-day MA of 4.06, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 35.12 is Neutral, neither overbought nor oversold. The STOCH value of 39.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:CLW.
Charter Hall Long WALE REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$9.00B | 10.60 | 19.38% | 1.97% | 15.06% | 47.66% | |
69 Neutral | AU$8.75B | 10.58 | 7.84% | 4.41% | 12.66% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | AU$911.53M | 5.68 | 1.70% | 7.11% | 4.69% | ― | |
56 Neutral | AU$6.49B | 5.34 | 4.78% | 5.32% | 4.52% | ― | |
54 Neutral | AU$2.47B | 4.72 | 6.69% | 6.14% | -9.63% | ― | |
53 Neutral | AU$1.62B | 7.35 | 1.57% | 8.12% | -0.33% | 58.26% |
* Real Estate Sector Average
AU:CLW
Charter Hall Long WALE REIT
3.42
-0.18
-5.00%
AU:CHC
Charter Hall Group
18.68
2.47
15.24%
AU:DXS
Dexus
5.99
-0.79
-11.68%
AU:GPT
GPT Group
4.53
0.30
7.12%
AU:GOZ
Growthpoint Properties Australia
2.12
>-0.01
-0.19%
AU:ABG
Abacus Property Group
1.00
-0.04
-4.03%
Charter Hall Long WALE REIT Corporate Events
Charter Hall Long WALE REIT Details December Quarter Fund Payment
Feb 10, 2026
Charter Hall Long WALE REIT has confirmed its status as an Attribution Managed Investment Trust for the quarter ended 31 December 2025 and detailed the fund payment components tied to its latest distribution. The REIT, which includes the Charter H...
Charter Hall Long WALE REIT Announces New Distribution for Investors
Dec 12, 2025
Charter Hall Long WALE REIT has announced a new distribution for its fully paid units stapled securities, with a distribution amount of AUD 0.06375 per unit. The distribution relates to the quarter ending December 31, 2025, with the ex-date set fo...
Charter Hall Long WALE REIT Director Increases Stake
Nov 17, 2025
Charter Hall Long WALE REIT announced a change in the director’s interest, with David William Harrison acquiring additional ordinary securities through direct and indirect interests. This acquisition, part of a dividend reinvestment plan, in...
Charter Hall Long WALE REIT Director Increases Stake
Nov 17, 2025
Charter Hall Long WALE REIT announced a change in the director’s interest, with Ceinwen Kirk-Lennox acquiring 902 ordinary securities through participation in the Dividend Reinvestment Plan. This change reflects the director’s increase...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.