The Charter Hall Long WALE REIT (ASX: CLW), owned by Charter Hall Group Ltd (ASX: CHC), has announced three new acquisitions and an equity raising of $180 million, placing shares in a trading halt.
About Charter Hall
Charter Hall is one of Australia’s leading property groups, with more than $28.4 billion of leased property in the office, retail, industrial and social infrastructure sectors.
Charter Hall Long WALE REIT (CLW) is one of the many real estate investment trusts that they operate. CLW consists of 114 properties with a total valuation of approximately $1.9 billion. The “WALE” part of the name refers to the weighted average lease expiry, which is 12.6 years for this portfolio.
Three New Acquisitions
CLW has entered agreements to acquire:
- 50% of Brisbane City Council Bus Network Terminal, Eagle Farm, for $51.3 million
- Yield of 5% and a remaining lease term of 19.2 years
- 100% of Thales Australian Head Office, Sydney Olympic Park, for $46.2 million
- Yield of 5.4% and a remaining lease term of 11.9 years
- 100% of Telstra Canberra Head Office for $108.5 million
- Yield of 6.9% and a remaining lease term of 6.6 years
The total consideration for the three properties is $206 million, and the weighted average initial passing yield is 6.1%.
CLW will conduct a fully underwritten institutional placement to raise $180 million. The securities will be issued at a fixed price of $4.74 per security, representing a 3.9% discount to the last close price.
A security purchase plan (SPP) is expected to raise up to a further $10 million. The SPP will allow eligible shareholders to purchase up to $15,000 of new securities at an offer price of $4.669 per security.
Impact And Guidance
Following the three acquisitions and equity raising, FY19 operating EPS is expected to be 26.9 cents per security, which sits at the upper end of previous guidance. CLW also gave guidance for FY20 operating EPS growth of no less than 3.75%.
Securities will remain in a trading halt until tomorrow.
If you’re looking for dividends, check out the three proven, dividend-paying companies in the free report below.
Finding ASX shares offering exceptional long term growth and dividends over 3% is rare. Fortunately, the Rask Group's top expert investment analyst has released a FREE investing report which reveals 3 proven ASX shares.
These three companies have proven themselves to be reliable dividend + growth shares over a decade. Click here to get instant access to his report.
Past performance is not indicative of future performance but as he says in his report, there are many reasons to keep a close watch on these 3 shares in 2019 and beyond.
Absolutely no credit card details or payment required.
Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.