Charter Hall Long WALE REIT (ASX:CLW) has weathered another turbulent financial year, reporting a 7% decline in operating earnings compared to FY23, largely due to rising interest costs and the impact of asset sales. Operating earnings for FY24 came in at 26 cents per security, matching the company’s guidance, while distributions per security also held at 26 cents.
One of the key highlights of FY24 was CLW’s strategic divestment program, which saw the sale of $762 million in assets, representing around 11% of the portfolio. Fund Manager Avi Anger noted, “This asset sale program allowed us to reduce near-term lease expiry risk while strengthening our balance sheet for the future.” These sales helped reduce balance sheet gearing to 30.1%, within the company’s target range, and provided room for additional capital management initiatives such as a $50 million security buy-back.
Despite these financial challenges, the REIT's portfolio remains resilient, with a high 99.9% occupancy rate and a weighted average lease expiry (WALE) of 10.5 years. CLW continues to focus on high-quality tenants, with 99% of its income coming from blue-chip companies, including government bodies and large corporates.
