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Charter Hall Long WALE REIT (AU:CLW)
ASX:CLW
Australian Market

Charter Hall Long WALE REIT (CLW) AI Stock Analysis

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AU

Charter Hall Long WALE REIT

(Sydney:CLW)

Rating:71Outperform
Price Target:
AU$4.50
▲(7.14%Upside)
The overall stock score of 71 is primarily driven by strong technical analysis indicators showing bullish momentum and positive cash flow, despite a challenging financial performance with declining revenue and net losses. While the attractive dividend yield adds value, the negative P/E ratio indicates valuation concerns.

Charter Hall Long WALE REIT (CLW) vs. iShares MSCI Australia ETF (EWA)

Charter Hall Long WALE REIT Business Overview & Revenue Model

Company DescriptionCharter 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. Charter Hall Long WALE REIT is managed by Charter Hall Group (ASX:CHC). With over 29 years' experience in property investment and funds management, we're one of Australia's leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across our core sectors - office, industrial & logistics, retail and social infrastructure. Operating with prudence, we've carefully curated a $45 billion diverse portfolio of over 1,300 high quality, long leased properties. Partnership and financial discipline are at the heart of our approach. Acting in the best interest of customers and communities, we combine insight and inventiveness to unlock hidden value. Taking a long-term view, our $6.8 billion development pipeline delivers sustainable, technologically enabled projects for our customers. The impacts of what we do are far-reaching. From helping businesses succeed by supporting their evolving workplace needs, to providing investors with superior returns for a better retirement, we're powered by the drive to go further.
How the Company Makes MoneyCharter Hall Long WALE REIT makes money primarily through rental income generated from its diversified portfolio of real estate assets. The company's revenue model is anchored on acquiring properties with long Weighted Average Lease Expiry (WALE), ensuring consistent and predictable cash flows. Key revenue streams include lease payments from tenants across industrial, office, retail, and social infrastructure sectors. Additionally, CLW benefits from strategic partnerships with experienced property managers and developers, which enhances asset management efficiencies and supports portfolio growth. The trust may also engage in selective property development or asset recycling to optimize portfolio performance and realize capital gains, contributing to its earnings.

Charter Hall Long WALE REIT Financial Statement Overview

Summary
Charter Hall Long WALE REIT faces a challenging financial landscape with declining revenues and significant net losses impacting profitability. While the balance sheet reflects moderate leverage and a strong equity base, cash flows remain positive, highlighting operational efficiency. Continued focus on revenue growth and cost management is essential for future financial stability.
Income Statement
62
Positive
The income statement reveals a challenging environment with declining revenues from $222.5M to $144.1M in the latest year, and a net loss of $510.9M. Gross profit margin decreased from 70.7% to 53.4%, indicating reduced profitability. However, EBIT margin remains relatively stable at 49.1%, showing operational resilience. The significant EBITDA loss suggests potential non-cash or one-time charges.
Balance Sheet
68
Positive
The balance sheet shows reasonable financial stability with a debt-to-equity ratio of 0.51, reflecting moderate leverage. The equity ratio of 64.2% indicates a strong equity base relative to assets. However, declining total assets and equity over time suggest pressure on asset management and shareholder value.
Cash Flow
75
Positive
Cash flow analysis shows positive operating cash flow at $185.2M, indicating adequate cash from operations despite net income losses. Free cash flow is stable, but limited growth in free cash flow from $231.1M to $185.2M suggests some operational headwinds. The operating cash flow to net income ratio is not meaningful due to negative net income.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
243.09M217.92M222.51M219.70M154.60M126.68M
Gross Profit
209.79M150.73M157.21M159.48M112.96M93.73M
EBIT
203.58M129.41M153.24M222.20M110.37M76.23M
EBITDA
113.94M-426.97M-128.62M222.20M110.37M-61.09M
Net Income Common Stockholders
-201.22M-510.88M-188.99M911.90M618.31M122.42M
Balance SheetCash, Cash Equivalents and Short-Term Investments
26.34M22.68M19.68M19.00M76.97M38.42M
Total Assets
4.94B5.25B6.20B6.48B4.69B3.09B
Total Debt
1.58B1.70B1.94B1.83B1.34B829.91M
Net Debt
1.55B1.68B1.92B1.82B1.26B791.48M
Total Liabilities
1.66B1.88B2.13B2.02B1.41B900.58M
Stockholders Equity
3.28B3.37B4.07B4.46B3.28B2.19B
Cash FlowFree Cash Flow
178.52M185.18M231.06M870.83M162.30M105.66M
Operating Cash Flow
178.52M185.18M179.68M187.67M162.30M105.66M
Investing Cash Flow
602.32M260.12M-51.84M-683.16M-1.09B-1.13B
Financing Cash Flow
-779.36M-444.46M-127.16M437.52M970.75M1.06B

Charter Hall Long WALE REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.20
Price Trends
50DMA
3.91
Positive
100DMA
3.84
Positive
200DMA
3.82
Positive
Market Momentum
MACD
0.08
Negative
RSI
68.97
Neutral
STOCH
93.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CLW, the sentiment is Positive. The current price of 4.2 is above the 20-day moving average (MA) of 4.10, above the 50-day MA of 3.91, and above the 200-day MA of 3.82, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 68.97 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CLW.

Charter Hall Long WALE REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCLW
71
Outperform
AU$2.98B-5.75%6.07%-15.42%65.86%
61
Neutral
$2.82B10.880.42%8438.92%5.74%-20.95%
$5.91B308.971.03%2.43%
$4.89B-9.22%5.82%
$6.06B-1.94%4.97%
$12.53B18.185.94%4.68%
AUGOZ
61
Neutral
AU$1.89B-10.45%8.34%2.70%-8.39%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CLW
Charter Hall Long WALE REIT
4.21
1.01
31.56%
CTOUF
Charter Hall Group
12.54
4.49
55.78%
DEXSF
Dexus
4.51
0.10
2.27%
GPTGF
GPT Group
3.18
0.48
17.78%
STGPF
Scentre Group
2.42
0.42
21.00%
AU:GOZ
Growthpoint Properties Australia
2.48
0.33
15.35%

Charter Hall Long WALE REIT Corporate Events

Charter Hall Long WALE REIT Declares Quarterly Distribution
May 13, 2025

Charter Hall Long WALE REIT announced a distribution of 6.25 cents per stapled security for the quarter ending 31 March 2025, with a fund payment component of 3.8531 cents. This declaration as an Attribution Managed Investment Trust (AMIT) impacts non-resident securityholders and custodians, while Australian residents are unaffected for tax purposes. The announcement reflects the REIT’s ongoing commitment to providing stable returns to its investors through long-term leases with high-quality tenants.

The most recent analyst rating on (AU:CLW) stock is a Hold with a A$4.08 price target. To see the full list of analyst forecasts on Charter Hall Long WALE REIT stock, see the AU:CLW Stock Forecast page.

Charter Hall Long WALE REIT Announces Registry Office Relocation
Apr 14, 2025

Charter Hall Long WALE REIT announced a change in the address of its units registry office in Sydney, effective 14 April 2025. The registry, managed by MUFG Corporate Markets (AU) Limited, is relocating to Liberty Place, Level 41, 161 Castlereagh St, Sydney. This change does not affect the postal address or telephone number, ensuring minimal disruption for stakeholders.

Director’s Interest Change at Charter Hall Long WALE REIT
Apr 9, 2025

Charter Hall Long WALE REIT has announced a change in the director’s interest, with Director Raymond Fazzolari acquiring 5,000 ordinary securities through an on-market trade. This acquisition, valued at $17,555, reflects an increase in Fazzolari’s stake in the company, potentially signaling confidence in the company’s future performance and stability.

Charter Hall Long WALE REIT Announces New Distribution
Mar 19, 2025

Charter Hall Long WALE REIT has announced a new distribution of AUD 0.0625 per fully paid unit stapled security, with the ex-date set for March 28, 2025, and the payment date on May 15, 2025. This distribution reflects the company’s ongoing commitment to delivering consistent returns to its investors, reinforcing its position in the real estate investment market as a reliable source of income for stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.