The Charter Hall Long WALE REIT (ASX: CLW) share price has gone up more than 2% after reporting its FY25 result.
Charter Hall Long WALE REIT is a property business that owns a variety of properties across Australia, leasing them to tenants.
FY25 result
The business reported its result for the 12 months to 30 June 2025. Here are some of the highlights:
- Like-for-like property income grew 3% to $291.3 million
- Net property income from transactions declined $41.4 million to $8.4 million
- Operating earnings declined 5% to $178.6 million
- Operating earnings per security (EPS) fell 3.8% to $0.25
- Distribution per security declined 3.8% to $0,25
- NTA per security declined 1.5% to $4.59
The business noted that all of its portfolio had been independently valued during the financial year, with overall portfolio valuations remaining “broadly flat”.
Its portfolio’s weighted average lease expiry (WALE) remains long-dated, with the figure being 9.3 years at the end of the FY25 reporting period.
Its portfolio is generating almost as much revenue as it can, with a portfolio occupancy rate of 99.9%.
Acquisitions and disposals
The business announced that after 30 June 2025, it completed $222.9 million of ‘net property’ acquisitions, which it said will be portfolio-enhancing and add to its future earnings. This includes a number of critical Commonwealth Government leased, social infrastructure properties.
Charter Hall Long WALE REIT also said that it has executed agreements with Coles Group Ltd (ASX: COL) for an expansion and lease extension at its Perth Airport Distribution Centre.
During FY25, it completed $11.5 million of new acquisitions and $350.3 million in asset divestments.
FY26 guidance
The business provided guidance that its FY26 operating earnings per security guidance of $0.255 and distribution per security guidance of $0.255. This represents 2% growth year on year.
At the current Charter Hall Long WALE unit price, that translates into a distribution yield of 6%, which is appealing at a time when interest rates are falling.
Final thoughts on the Charter Hall Long WALE share price
Despite the steady climb of the REIT’s unit price over the last several months, I still think this could be a good time to invest. Declining interest rates could be supportive at least until the RBA says it’s done cutting rates. It’s still trading cheaper than its NTA, being the net tangible assets (NTA).
It’s one of the ASX dividend shares I’d keep an eye on.
