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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.
Diversified, high‑quality portfolio
A broad $6bn portfolio with a large share of triple‑net leases and contractual annual rent escalations supports durable net property income. Diversification across property types and long‑dated, creditworthy leases reduces single‑asset concentration risk and underpins steady cash generation.
Strong hedging and improved funding margins
High hedging coverage (~80%) and recent accretive refinancing lower interest rate volatility exposure and lock in a material portion of funding costs. Combined with reduced all‑in margins, this gives multi‑period protection for distributable earnings and supports capital management discipline.
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.
Elevated look‑through gearing limits balance‑sheet flexibility
A 41% look‑through gearing level narrows headroom for additional balance‑sheet funded acquisitions and increases reliance on recycling or equity to grow. This structural constraint can slow portfolio expansion and reduce optionality for accretive deals over the medium term.
Revenue decline and volatile profitability
A large recent drop in reported revenue and prior negative net margins indicate earnings volatility despite strong operating cash flow. Structural profitability weakness can limit retained earnings for reinvestment and raises dependency on asset recycling or capital markets to sustain distributions long term.
Charter Hall Long WALE REIT (CLW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.68B
Dividend Yield6.14%
Average Volume (3M)1.26M
Price to Earnings (P/E)12.1
Beta (1Y)0.86
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$4.13Price Target Upside11.11% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.25
Revenue Forecast (FY)AU$329.70M
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 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 strategically located and have long WALE (Weighted Average Lease Expiry), which minimizes vacancy risk and ensures predictable cash flows. Key revenue streams include base rent, percentage rent from retail leases, and other ancillary income from property management activities. Significant partnerships include collaborations with leading corporations and government entities that occupy its properties, enhancing the reliability of rental income. Additionally, CLW benefits from a diversified tenant base and active property management, which contribute to stable and growing earnings over time.
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.Q2-2026 Updates
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.
Net Tangible Asset (NTA) Improvement
NTA per security increased to $4.68 at 31 December 2025, up 2% from 30 June 2025, driven by positive revaluations (partly offset by fair value movement of debt and derivatives).
Like-for-Like Net Property Income Growth
Like-for-like net property income grew by 3% in the half, supported by net transaction activity adding incremental income to the portfolio.
High Portfolio Occupancy and Long WALE
Portfolio occupancy at 99.9% and weighted average lease term (WALE) of 9.2 years, supporting predictable long-term rental cash flows and resilience of income.
Valuation Uplift from Independent Valuations
86% of the portfolio was independently valued during the half, producing a $139 million net valuation uplift (c. 2.8% increase for properties independently valued).
Strong Capital Management and Hedging
Completed ~$700m of earnings-accretive debt refinancing initiatives and established $1.1bn of new interest rate hedging. Hedging coverage ~80% for the balance of FY26 and ~71% on average for FY27; look-through weighted average cost of debt ~4.4% with average fixed hedged rate ~2.6%.
Improved Funding Margins
All-in margin across the platform reduced to ~140 basis points (from ~145 bps previously and ~150 bps earlier), reflecting successful refinancing initiatives and JV-level financing (including a $375m ALE facility).
Strategic Acquisitions and Portfolio Enhancements
Settled $376m of net transactions (acquisitions $455m, divestments $79m). Notable acquisitions: 49.9% interest in a new Coles automated distribution centre (20-year lease; CLW share on completion value $219.6m; on-completion value forecast $440m; completion 2027) and a $17.6m equity stake in a long-WALE CBD office partnership (98% occupied, 18-year WALE).
Diversified $6bn Portfolio and Attractive Yield
Portfolio ~515 properties valued at ~ $6 billion, average cap rate c. 5.4%, 49% of income from triple-net leases, average annual rent increases ~3.1%. Based on recent price, forecast distribution yield ~6.8% for FY26.
Credit Rating and Liquidity Metrics
Moody's reaffirmed CLW's Baa1 investment-grade credit rating. Balance sheet gearing 29.8% (within 25–35% target); look-through gearing 41% with covenant headroom (covenant at 50%). Interest coverage ratio ~2.9x as at 31 December 2025.
ESG and Sustainability Progress
Maintained net zero Scope 1 and 2 emissions for assets under Charter Hall operational control, installed 9.4 MW of solar (up 0.5 MW in 6 months), NABERS Energy 5.4 and Water 4.9 (up 0.2), and achieved a GRESB score of 82 (up 4 points year-on-year).
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.
Market Pricing and Discount to NTA
Security price volatility and a material discount to NTA (example referenced movement from ~$4.70 to ~$3.75) has created a large distribution yield but pricing headwinds; management currently has no buyback planned.
Look-through Gearing and Growth Constraints
Look-through gearing at 41% (versus balance sheet gearing 29.8%); while covenants sit at ~50% there is potential constraint on aggressive balance-sheet funded growth, meaning future acquisitions may rely on recycling or equity raises.
Under-rented ALE (Endeavour) Portfolio and Upcoming Market Review
The acquired ALE portfolio has been described as 'significantly under-rented' (historically noted ~30% under-rented at acquisition). A material market review for a portion of the portfolio (November 2028) presents both negotiation risk and opportunity for rent reversion.
Tenant Transition Risk (Telstra Canberra)
Telstra is vacating the Canberra building in stages (partial 6-month extension obtained). This creates near-term leasing risk and potential downtime though management reports encouraging interest from private and government tenants.
Interest Rate Uncertainty and Higher Hedge Rates
Hedges were established at higher market swap rates (mid-3s), pushing up the effective cost of hedging; while execution costs were immaterial, the market rates used for hedges are higher than prior periods and present an ongoing earnings sensitivity to rates.
Transaction Pricing and WALE Trade-offs
Some portfolio recycling involved selling older, shorter-WALE assets; in at least one instance the divestment was at or below prior June book value due to shortened WALE and cap rate movement, indicating execution timing and pricing risk on asset recycling.
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
Financials are mixed: the income statement shows a sharp revenue decline and unstable profitability (including a prior negative net margin), while the balance sheet has manageable leverage but negative recent ROE. Cash flow is comparatively resilient with strong operating cash flow and a solid free-cash-flow-to-net-income relationship.Income Statement
The income statement shows a significant decline in revenue growth rate, with a notable decrease of 25.29% in the latest period. Gross profit margin remains relatively strong, but net profit margin has been volatile, with a substantial negative margin in the previous year. EBIT and EBITDA margins have also shown instability, reflecting challenges in maintaining profitability.45
Neutral
Balance Sheet
The balance sheet indicates a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity has been negative in recent periods, indicating challenges in generating returns for shareholders. The equity ratio is stable, reflecting a solid capital structure.60
Neutral
Cash Flow
Cash flow analysis reveals a slight decline in free cash flow growth, but operating cash flow remains robust relative to net income. The free cash flow to net income ratio is strong, indicating efficient cash generation despite recent profitability issues.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
3.92
Negative
4.04
Negative
4.10
Negative
Market Momentum
-0.05
Negative
41.78
Neutral
50.57
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 below the 20-day moving average (MA) of 3.76, below the 50-day MA of 3.92, and below the 200-day MA of 4.10, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 41.78 is Neutral, neither overbought nor oversold. The STOCH value of 50.57 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$10.39B | 27.44 | 24.58% | 1.97% | 15.06% | 47.66% | |
69 Neutral | $9.62B | 9.88 | 3.56% | 4.41% | 12.66% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | AU$956.21M | 12.03 | 1.70% | 7.11% | 4.69% | ― | |
56 Neutral | AU$7.18B | 15.15 | 1.32% | 5.32% | 4.52% | ― | |
54 Neutral | AU$2.68B | 12.11 | 3.57% | 6.14% | -9.63% | ― | |
53 Neutral | AU$1.68B | 46.09 | -5.04% | 8.12% | -0.33% | 58.26% |
* Real Estate Sector Average
AU:CLW
Charter Hall Long WALE REIT
3.69
0.06
1.65%
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21.48
4.76
28.49%
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Dexus
6.58
-0.59
-8.23%
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GPT Group
4.86
0.42
9.48%
AU:GOZ
Growthpoint Properties Australia
2.20
-0.03
-1.57%
AU:ABG
Abacus Property Group
1.05
-0.03
-2.34%
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 Hall Direct Industrial Fund and LWR Finance Trust, reported a total cash distribution of 6.375 cents per stapled security, with a fund payment component of 4.3956 cents per unit primarily relevant to non-resident investors and custodians.
The Finance Trust will not pay a distribution for the quarter, while the Direct Industrial Fund accounts for the full cash payout and associated withholding tax classifications. Full-year tax components will be provided in AMIT Member Annual Statements expected in August 2026, giving investors clarity on the tax treatment of their income and reinforcing the trust’s compliance and transparency around distributions.
The most recent analyst rating on (AU:CLW) stock is a Hold with a A$4.00 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 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 for December 30, 2025, and payment scheduled for February 13, 2026. This announcement underscores the company’s commitment to providing consistent returns to its investors, reinforcing its position in the real estate investment sector.
The most recent analyst rating on (AU:CLW) stock is a Hold with a A$4.25 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 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, indicates a continued commitment to the company’s growth and stability, potentially enhancing investor confidence.
The most recent analyst rating on (AU:CLW) stock is a Hold with a A$4.25 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 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 increased investment in the company, potentially indicating confidence in the company’s future performance and stability.
The most recent analyst rating on (AU:CLW) stock is a Hold with a A$4.25 price target. To see the full list of analyst forecasts on Charter Hall Long WALE REIT stock, see the AU:CLW Stock Forecast page.
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.