Charter Hall Long WALE REIT 2026 Full Year Results
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Charter Hall Long WALE REIT (ASX: CLW) (the REIT) today announces its full year results for the year ended 30 June 2026, delivering growth in operating earnings and distributions as Australia’s largest diversified Net Lease REIT.
Financial and portfolio highlights:
- FY26 operating earnings of $181.9 million, or 25.5 cents per security (cps), representing 2.0% growth on the prior corresponding period
- FY26 distributions of 25.5 cps
- Statutory earnings of $275.9 million
- Net tangible assets of $4.71 per security, up 2.6% from 30 June 2025
- 27.5% balance sheet gearing1, at the lower end of 25% to 35% target range
- 3.1% average annual net property income growth
- Portfolio weighted average lease expiry (WALE) of 9.2 years2, providing long term income security
- Portfolio occupancy of 99.9%3, continuing a track record of near 100% occupancy since IPO
- 100% of the portfolio has been independently valued during the financial year resulting in net property valuation uplift of $188 million, representing a 3.2% increase in FY26
Operating highlights:
- Completed a comprehensive $2.0 billion refinance of the REIT’s balance sheet debt, implementing a new secured debt platform with extended maturities, improved pricing and materially enhanced financial covenants
- Highly hedged position with new hedging executed, resulting in average forecast debt hedged of 85% in FY27 mitigating the impact of interest rate volatility
- Continued strategic portfolio curation with the REIT divesting $324 million of assets at an average yield of 4.7% and WALE of 8.4 years and actively recycling proceeds into $572 million of new investments, at an average yield of 7.4% and WALE of 13.5 years
- Net $248 million of transaction activity is earnings accretive, portfolio enhancing and increases the REIT’s portfolio WALE, with new long WALE investments underpinned by leases to secure corporate and government tenants including the Commonwealth Government, Coles Group, Telstra Corporation and Sonic Healthcare
- Reached practical completion of the cold storage expansion facility at the Coles Distribution Centre, Perth WA, with the lease term resetting to 12 years at completion across the entire facility (ie. the expanded area and existing facility)
- 51% of leases are triple net, materially reducing capital expenditure leakage
- All leases have annual rent increases with 54% of rent reviews being CPI linked, providing significant inflation-linked rental growth
Charter Hall Diversified CEO, Avi Anger, said: “CLW delivered a positive FY26 result, with operating earnings and distributions per security both increasing by 2.0%, while maintaining defensive income characteristics central to the REIT’s strategy.
The portfolio remains highly resilient, with 99.9% occupancy, a 9.2 year WALE and 99% of income leased to government, ASX-listed, multinational and national tenant customers. This provides investors with predictable, long-term rental cashflows supported by contracted annual rent increases.
The portfolio remains diversified by tenant, industry, property type and geography, with exposure across convenience net lease retail, industrial and logistics, data centres and social infrastructure and office. The REIT’s income is supported by defensive tenant industries including government, grocery and distribution, convenience retail, data centres and telecommunications, banking, food manufacturing and healthcare.”
Portfolio enhancing and earnings accretive transactions
In FY26, CLW completed a total of $248 million of net property transactions. In addition to those transactions already disclosed at CLW’s 1H FY26 Results, the REIT today announces it has completed the following during 2H FY26.
- Increased its investment in the Telco Exchanges portfolio, a portfolio of 36 telco exchange properties leased to Telstra Corporation, which are critical to Australia’s national fibre telecommunications networks
- Acquisition of a 25% interest in a world-class integrated pathology laboratory located in Brisbane, QLD with a 20 year, NNN lease to Sonic Healthcare Limited, a further 30 years of options and annual CPI linked reviews (capped at 3.5%)4
- Divestment of two Bunnings Warehouse properties with an average WALE of 5.6 years
- Divestment of the Club Waterford Hotel, QLD with a lease term remaining of 6.5 years
- Divestment of a portfolio of eight industrial and waste transfer properties leased to Veolia and Cleanaway5
Portfolio valuations
As at 30 June 2026, the portfolio comprised 505 properties with a portfolio valuation of $6.1 billion6. During FY26, 100% of the portfolio was independently valued, resulting in net property valuation uplift of $188 million or 3.2%. The portfolio weighted average capitalisation rate as at 30 June 2026 was 5.4%.
The valuation uplift contributed to an increase in NTA per security to $4.71.
Capital management
During FY26, CLW completed a comprehensive refinance and transition of balance sheet debt to a new $2.0 billion secured debt platform with no look through covenants.
The new debt platform provides enhanced financial flexibility, a diversified lender base across 10 lending counterparties, an improved covenant package and pricing benefits. Average credit margins across balance sheet debt facilities were reduced by 20 basis points to 1.2%, providing interest cost savings.
The refinance also extended the weighted average debt maturity to 4.1 years, with staggered maturities through to FY32. Balance sheet gearing was 27.5%.
CLW also completed interest rate hedging during the period, with average forecast debt hedged of 85% in FY27. This hedging profile significantly reduces exposure to interest rate volatility and supports earnings stability.
Outlook and FY27 guidance
CLW enters FY27 as Australia’s largest diversified Net Lease REIT, with a high quality portfolio, long WALE leases, blue-chip tenant covenants, high occupancy, mission-critical assets and a strengthened capital structure.
The REIT will continue to enhance portfolio quality through active curation and asset management, while maintaining capital efficiency through tenant retention, strategic partnerships and disciplined capital management.
Announcement Authorised by the Board
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