ASX:CLW

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Charter Hall Long WALE REIT

Executive Summary

Charter Hall Long WALE REIT is an Australian Real Estate Investment Trust (REIT) listed on the ASX and investing in high quality Australasian real estate assets that are predominantly leased to corporate and government tenants on long term leases.


Snowflake Analysis

Proven track record average dividend payer.

Share Price & News

How has Charter Hall Long WALE REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.8%

CLW

3.2%

AU REITs

3.6%

AU Market


1 Year Return

-14.6%

CLW

-22.5%

AU REITs

-10.3%

AU Market

Return vs Industry: CLW exceeded the Australian REITs industry which returned -22.5% over the past year.

Return vs Market: CLW underperformed the Australian Market which returned -10.3% over the past year.


Shareholder returns

CLWIndustryMarket
7 Day2.8%3.2%3.6%
30 Day2.1%-2.4%0.2%
90 Day-1.1%17.7%16.4%
1 Year-8.9%-14.6%-19.2%-22.5%-6.6%-10.3%
3 Year29.6%7.1%16.9%0.8%18.2%2.5%
5 Yearn/a38.6%7.8%35.7%6.4%

Price Volatility Vs. Market

How volatile is Charter Hall Long WALE REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Charter Hall Long WALE REIT undervalued compared to its fair value and its price relative to the market?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLW (A$4.4) is trading below our estimate of fair value (A$7)

Significantly Below Fair Value: CLW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLW is poor value based on its PE Ratio (11.7x) compared to the REITs industry average (10.5x).

PE vs Market: CLW is good value based on its PE Ratio (11.7x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: CLW is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: CLW is overvalued based on its PB Ratio (1x) compared to the AU REITs industry average (0.9x).


Next Steps

Future Growth

How is Charter Hall Long WALE REIT forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLW's forecast earnings growth (5.3% per year) is above the savings rate (2.3%).

Earnings vs Market: CLW's earnings (5.3% per year) are forecast to grow slower than the Australian market (15.1% per year).

High Growth Earnings: CLW's earnings are forecast to grow, but not significantly.

Revenue vs Market: CLW's revenue (10.6% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: CLW's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLW's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Charter Hall Long WALE REIT performed over the past 5 years?

44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLW has a large one-off gain of A$22.4M impacting its December 31 2019 financial results.

Growing Profit Margin: CLW's current net profit margins (73.8%) are higher than last year (51.2%).


Past Earnings Growth Analysis

Earnings Trend: CLW's earnings have grown significantly by 44.7% per year over the past 5 years.

Accelerating Growth: CLW's earnings growth over the past year (94.4%) exceeds its 5-year average (44.7% per year).

Earnings vs Industry: CLW earnings growth over the past year (94.4%) exceeded the REITs industry 3.3%.


Return on Equity

High ROE: CLW's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Charter Hall Long WALE REIT's financial position?


Financial Position Analysis

Short Term Liabilities: CLW's short term assets (A$54.0M) exceed its short term liabilities (A$41.9M).

Long Term Liabilities: CLW's short term assets (A$54.0M) do not cover its long term liabilities (A$574.5M).


Debt to Equity History and Analysis

Debt Level: CLW's debt to equity ratio (26.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CLW's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CLW's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: CLW's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Charter Hall Long WALE REIT current dividend yield, its reliability and sustainability?

6.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLW's dividend (6.43%) is higher than the bottom 25% of dividend payers in the Australian market (2.51%).

High Dividend: CLW's dividend (6.43%) is in the top 25% of dividend payers in the Australian market (6.39%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CLW has been paying a dividend for less than 10 years.

Growing Dividend: CLW's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.3%), CLW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLW's dividends in 3 years are forecast to be covered by earnings (96.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

David Harrison (54yo)

no data

Tenure

Mr. David William Harrison has been Group Chief Executive Officer and Managing Director at Charter Hall Group since February 16, 2016. He is responsible for all aspects of the Charter Hall business, with s ...


Leadership Team

NamePositionTenureCompensationOwnership
David Harrison
CEO & Executive Director of Charter Hall WALE Limitedno datano data0.082% A$1.8m
Philip Cheetham
Head of Listed Investor Relations3.5yrsno datano data
Mark Bryant
Company Secretary & Group General Counsel1.5yrsno datano data
Adrian Tasman Taylor
Executive Director & Office CEO of Charter Hall WALE Limited4yrsno data0.018% A$401.6k
Steven Bennett
Direct CEOno datano datano data
Scott Martin
Head of Finance - Diversifiedno datano datano data
Charisse Nortjé
Company Secretary2.67yrsno datano data
Avi Anger
Fund Managerno datano datano data

3.1yrs

Average Tenure

Experienced Management: CLW's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Harrison
CEO & Executive Director of Charter Hall WALE Limitedno datano data0.082% A$1.8m
Adrian Tasman Taylor
Executive Director & Office CEO of Charter Hall WALE Limited4yrsno data0.018% A$401.6k
Peeyush Kumar Gupta
Independent Non-Executive Chairman of Charter Hall WALE Limited3.83yrsAU$143.50k0.075% A$1.6m
Glenn Fraser
Independent Non-Executive Director of Charter Hall WALE Limited4.17yrsAU$110.00k0.013% A$284.3k
Ceinwen Kirk-Lennox
Independent Non-Executive Director of Charter Hall WALE Limited4.08yrsAU$97.38k0.0085% A$185.9k

4.1yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CLW's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CLW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 51.4%.


Top Shareholders

Company Information

Charter Hall Long WALE REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Charter Hall Long WALE REIT
  • Ticker: CLW
  • Exchange: ASX
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$2.177b
  • Shares outstanding: 489.11m
  • Website: https://www.charterhall.com.au

Location

  • Charter Hall Long WALE REIT
  • No. 1 Martin Place
  • Level 20
  • Sydeny
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLWASX (Australian Securities Exchange)YesStapled SecurityAUAUDOct 2016
CLWCHIA (Chi-X Australia)YesStapled SecurityAUAUDOct 2016

Biography

Charter Hall Long WALE REIT is an Australian Real Estate Investment Trust (REIT) listed on the ASX and investing in high quality Australasian real estate assets that are predominantly leased to corporate and government tenants on long term leases. Charter Hall Long WALE REIT is managed by Charter Hall Group (ASX:CHC). With over 28 years’ experience in property investment and funds management, we’re one of Australia’s leading fully integrated property groups. We use our property expertise to access, deploy, manage and invest equity across our core sectors – office, retail, industrial and social infrastructure. Operating with prudence Charter Hall Group as manager of CLW has carefully curated a more than $38 billion diverse portfolio of over 1100 high quality, long leased properties. Partnership and financial discipline are at the heart of our approach. Acting in the best interest of customers and communities, we combine insight and inventiveness to unlock hidden value. Taking a long term view, our $6.5 billion development pipeline delivers sustainable, technologically enabled projects for our customers. The impacts of what we do are far-reaching. From helping businesses succeed by supporting their evolving workplace needs, to providing investors with superior returns for a better retirement, we’re powered by the drive to go further. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 10:33
End of Day Share Price2020/07/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.