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Charter Hall Long WALE REIT
(Sydney:CLW)
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Rating:64Neutral
Price Target:
AU$4.00
▲(8.70% Upside)
Action:Reiterated
Date:08/04/26
The score is primarily held back by weaker financial performance trends (notably declining revenue and unstable profitability), partially offset by supportive cash generation. Technicals are constructive with the price above key moving averages and positive MACD, while valuation is helped by a moderate P/E and high yield. The latest earnings call was a net positive due to reaffirmed guidance and strong portfolio metrics, though higher financing costs and gearing remain key risks.
Positive Factors
Long WALE & High Occupancy
Near‑100% occupancy combined with a 9.2 year WALE gives highly predictable contracted rental cash flows and materially reduces rollover risk. Over a 2–6 month horizon this supports stable distributions and lowers earnings volatility versus short‑lease portfolios.
Negative Factors
Revenue decline & margin volatility
A material fall in reported revenue and unstable net profit margins indicate pressure on core earnings power. Over months this can force greater reliance on valuation uplifts or asset sales to sustain distributions and may constrain reinvestment without recurring operating income improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Long WALE & High Occupancy
Near‑100% occupancy combined with a 9.2 year WALE gives highly predictable contracted rental cash flows and materially reduces rollover risk. Over a 2–6 month horizon this supports stable distributions and lowers earnings volatility versus short‑lease portfolios.
Read all positive factors
Charter Hall Long WALE REIT (CLW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.59B
Dividend Yield7.12%
Average Volume (3M)1.26M
Price to Earnings (P/E)11.4
Beta (1Y)0.77
Revenue Growth39.66%
EPS Growth133.43%
CountryAU
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.39
Shares Outstanding722,356,260
10 Day Avg. Volume963,647
30 Day Avg. Volume1,257,385
Financial Highlights & Ratios
PEG Ratio-0.19
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$3.76Price Target Upside2.11% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.26
Revenue Forecast (FY)AU$338.71M
Charter Hall Long WALE REIT Business Overview & Revenue Model
Company Description
Charter Hall Long WALE REIT (CLW.AX) is an Australian Real Estate Investment Trust listed on the ASX, focusing its investments on prime property assets across Australasia. These properties are predominantly leased to corporate and government entit...
How the Company Makes Money
CLW makes money primarily by owning investment properties and leasing them to tenants under long-term lease agreements, generating recurring rental income. Its core revenue stream is contracted rent (including base rent and, where applicable, rent...
Charter Hall Long WALE REIT Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2027
Earnings Call Sentiment Positive
The call presents a predominantly positive outlook driven by stable earnings growth (2% increase in DPS/OPS), NTA uplift (+2.6%), strong portfolio metrics (99.9% occupancy, 9.2-year WALE), successful active portfolio management (net transactions, $188m valuation uplift) and a transformational $2bn refinance that lowered margins and extended debt tenor. Key challenges include higher finance costs (up 18.4%), some near-term expiries (3.7% in FY '27) with assumed downtime for specific assets, and exposure to higher market interest rates beyond FY '27 given lower hedge coverage into FY '28. Overall, positives materially outweigh the headwinds.Positive Updates
Earnings and Distributions
Operating earnings and distributions per security of $0.255, representing 2% growth on FY '25 and in line with management guidance. FY '27 guidance maintained at $0.255 DPS/OPS.
Negative Updates
Increased Finance Costs
Finance costs increased 18.4% year-on-year due to higher average debt drawn to fund transactions and a higher weighted average cost of debt driven by elevated floating rates in H2 FY '26.
Read all updates
Q4-2026 Updates
Positive
Negative
Earnings and Distributions
Operating earnings and distributions per security of $0.255, representing 2% growth on FY '25 and in line with management guidance. FY '27 guidance maintained at $0.255 DPS/OPS.
Read all positive updates
Company Guidance
Charter Hall Long WALE REIT (CLW) provided FY‑27 guidance of operating earnings and distributions per security of $0.255 (a 6.7% distribution yield at yesterday’s close), noting this assumes no further accretive transactions beyond those already completed; the REIT enters FY‑27 with pro‑forma balance sheet gearing of 27.5% (target range 25–35%), NTA $4.71 per security (up 2.6% year‑on‑year) and a $6.1bn portfolio valued with a $188m uplift (3.2% during FY‑26), featuring 99.9% occupancy, a 9.2‑year WALE (extendable to ~30 years with options), a 5.4% average cap rate, 3.1% average annual NPI growth with 54% of income CPI‑linked and 51% triple‑net income; CLW also completed a $2.0bn secured debt platform that extended average debt maturity by 1.6 years to 4.3 years, lowered average credit margins by ~20bps to 1.2%, and has a weighted average cost of debt of ~4.7% (spot BBSY 4.5%) with 85% FY‑27 hedging at an average fixed hedge rate of ~3.1% (49% hedged for FY‑28), and expects a modest ~10–15bps marginal headwind to cost of debt into FY‑27.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 | 256.37M | 181.62M | 217.92M | 222.51M | 219.70M | 154.60M |
| Gross Profit | 188.12M | 124.48M | 150.73M | 157.21M | 159.48M | 112.96M |
| EBITDA | 358.48M | 184.49M | -426.97M | 153.24M | 945.04M | 638.69M |
| Net Income | 275.90M | 118.28M | -510.88M | -188.99M | 911.90M | 618.31M |
Balance Sheet | ||||||
| Total Assets | 4.98B | 4.93B | 5.25B | 6.20B | 6.48B | 4.69B |
| Cash, Cash Equivalents and Short-Term Investments | 18.32M | 55.37M | 22.68M | 19.68M | 19.00M | 76.97M |
| Total Debt | 1.51B | 1.53B | 1.70B | 1.94B | 1.83B | 1.34B |
| Total Liabilities | 1.59B | 1.67B | 1.88B | 2.13B | 2.02B | 1.41B |
| Stockholders Equity | 3.39B | 3.26B | 3.37B | 4.07B | 4.46B | 3.28B |
Cash Flow | ||||||
| Free Cash Flow | 528.67M | 172.11M | 185.18M | 231.06M | 870.83M | 162.30M |
| Operating Cash Flow | 528.67M | 172.11M | 185.18M | 179.68M | 187.67M | 162.30M |
| Investing Cash Flow | -283.32M | 309.45M | 260.12M | -51.84M | -683.16M | -1.09B |
| Financing Cash Flow | -282.40M | -448.87M | -444.46M | -127.16M | 437.52M | 970.75M |
Charter Hall Long WALE REIT Technical Analysis
Negative
3.68
Price Trends
3.69
Negative
3.54
Positive
3.67
Negative
Market Momentum
0.02
Positive
36.15
Neutral
20.29
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 3.68 is below the 20-day moving average (MA) of 3.76, below the 50-day MA of 3.69, and above the 200-day MA of 3.67, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 20.29 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | AU$9.83B | 12.05 | 7.84% | 4.90% | 3.78% | ― | |
70 Outperform | AU$10.99B | 20.39 | 19.38% | 2.28% | 18.04% | 71.29% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$2.59B | 11.39 | 6.69% | 6.93% | 39.66% | 133.43% | |
62 Neutral | AU$60.67B | 35.75 | 7.19% | 1.05% | 1.76% | 73.69% | |
57 Neutral | AU$790.89M | 9.86 | 5.12% | 9.19% | 4.64% | ― | |
56 Neutral | AU$6.31B | 13.36 | 4.78% | 6.46% | -1.07% | ― |
* Real Estate Sector Average
AU:CLW
Charter Hall Long WALE REIT
3.58
-0.63
-14.88%
AU:CHC
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23.24
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5.88
-1.18
-16.74%
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Goodman Group
29.67
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-16.42%
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GPT Group
5.13
<0.01
0.02%
AU:ABG
Abacus Property Group
0.89
-0.26
-22.50%
Charter Hall Long WALE REIT Corporate Events
BlackRock exits substantial holder position in Charter Hall Long WALE REIT
Jul 26, 2026
BlackRock Group has notified Charter Hall Long WALE REIT that it has ceased to be a substantial holder in the trust, filing a formal notice of ceasing substantial shareholding under section 671B of the Corporations Act 2001. The change, authorised...
BlackRock Ceases to Be Substantial Holder in Charter Hall Long WALE REIT
Jul 21, 2026
BlackRock Group has lodged a Form 605 notice stating it has ceased to be a substantial holder in Charter Hall Long WALE REIT, marking a change in the REIT’s institutional investor base. The filing, signed by an authorised BlackRock signatory...
Charter Hall Long WALE REIT Declares June Quarter Distribution
Jun 19, 2026
Charter Hall Long WALE REIT, an Australian real estate investment trust specialising in long-lease commercial properties, offers investors exposure to stable rental income backed by long-duration tenant agreements. The trust is listed on the ASX u...
Charter Hall Long WALE REIT Updates Market on Director’s Increased Security Holdings
May 21, 2026
Charter Hall Long WALE REIT has disclosed changes in the security holdings of director David William Harrison, reflecting both direct and indirect increases in his interest in the trust. The adjustments stem from participation in the distribution ...
Charter Hall Long WALE REIT Updates Market on Director’s Increased Security Holding
May 21, 2026
Charter Hall Long WALE REIT has disclosed a change in director Ceinwen Kirk-Lennox’s interests, reflecting a modest increase in her direct holding of ordinary securities through participation in the REIT’s dividend reinvestment plan. T...
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.