The ASX 200 REIT Charter Hall Long WALE REIT (ASX: CLW) share price has gained more than 7% this month and is currently trading at $3.59 per share.
After Monday's broader market selloff, the Long WALE REIT caught a bid late in the week following the release of its FY24 report overnight. It has gained more than 2.8% in today's session.
Let's see what the ASX 200 REIT posted in its results.
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ASX 200 REIT up on solid FY24 results
Key takeouts from the year include:
- Operating earnings pulled to $188 million, or 26 cents per security (cps).
- Distributions of 26 cps in total.
- Net tangible assets (NTA) are valued at $4.66 per security.
- Posted a statutory loss of $510.9 million, reflecting a net valuation decrease.
- Like-for-like Net Property Income (NPI) growth was 4.7% on the prior year.
- Portfolio weighted average lease expiry (WALE) at 10.5 years.
What else happened in FY24?
During FY24, the ASX 200 REIT executed a series of divestments aimed at reducing lease expiry risks and "curating the portfolio" for future growth.
Key divestments included $96.2 million in Long WALE retail assets and $225.3 million in Agri-Logistics assets, among others.
The portfolio now comprises 540 properties, with an occupancy rate of 99.9% and a long WALE of 10.5 years.
Despite these achievements, the portfolio's gross asset value saw a net decrease of $626 million.
This was due to an increase in the portfolio's capitalisation rate, from 4.8% to 5.4% during the year. Capitalisation rate is the term used to measure the return on investment of real estate assets.
At the end of the financial year, the ASX 200 REIT's 540 properties were 99.9% occupied.
What did management say?
Fund manager Avi Anger was pleased with the result. He commented on the REIT's performance:
CLW has successfully completed a strategic program of divesting assets, reducing near-term lease expiry 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 increases.
What's next?
Looking ahead to FY25, the E REIT has guided for operating earnings per security of 25 cents and distributions per security of 25 cents. That means it will pass through all operating earnings as income to shareholders.
This also represents a 7% distribution yield at the current share price.
The ASX 200 REIT also intends to buyback up to $50 million of its own stock moving forward, creating a further 'yield'.
ASX 200 REIT share price snapshot
The Charter Hall Long WALE REIT has surged this month. The market's reception to its FY24 results has added further buying to the trend.
However, it is trading 2.5% lower over the past 12 months.
