Charter Hall’s Long Wale REIT extends full-year loss
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The news: Charter Hall’s Long Wale REIT (CLW) significantly extended its full-year loss in the 12 months to June, as higher interest rates drove up finance costs and an independent valuation shed $626 billion of its real estate portfolio.
The numbers: CLW recorded a statutory loss of $510.9 million for FY24, extending a loss of $189 million a year prior. Revenue totalled $219.7 million, dipping 1.3% compared to the prior corresponding period. Operating earnings fell 7.1% year on year to $188 million.
CLW had 100% of its portfolio by gross asset value independently valued during the year, resulting in a net valuation decrease of $626 million during the year.
However, net property income increased by 2.5% to $332.7 million, driven by like-for-like growth of 4.7%, offset by divestment activity.
CLW provided FY25 operating earnings per security guidance of 25 cents and distributions per security guidance of 25 cents, down from 26 cents in FY24.
The REIT also announced its intention to conduct an on-market buy back of securities in CLW for up to $50 million.
The context: The commercial real estate fund said portfolio curation remains a "key strength" of the Charter Hall platform, as the REIT executed $762.2 million of completed or exchanged divestments during the year.
The divestments comprised retail assets such as the part sale of Myer Melbourne, and agri-logistics assets with the sale of its Inghams portfolio. CLW also divested a number of assets across its industrial and logistics, office, and social infrastructure segments.
What they said: CLW fund manager Avi Anger said: "CLW has successfully completed a strategic program of divesting assets, reducing near term lease expiring risk, strengthening the balance sheet and curating the portfolio for the future".
"The portfolio at 30 June 2024 now features an increased weighting towards triple-net leases of 55%, occupancy of 99.9% and like for like income growth of 4.7% as a result of an attractive mix of fixed and CPI linked annual increased," he said.
The source: ASX announcement
