Brokerages flag debt cost woes for Australia's Charter Hall Long WALE REIT

Charter Hall Long WALE REIT

13/08/2026 22:19

** Citi and Morningstar analysts say Charter Hall Long WALE REIT's CLW.AX FY27 earnings forecast was below their estimates due to higher debt cost expectations, with Citi also noting increased base rates heading into FY27
** Real estate investment trust reported FY26 operating earnings of A$181.9 million on Thursday, up 2% from last year, and projected flat operating earnings per security for 2027 vs 2026; stock fell 3.2%
** Citi flagged that despite CLW's long weighted average lease expiries, around 4% of income is expiring in FY27
** Morningstar sees headwinds from elevated interest rates in the short-medium term, as lower-rate hedges roll off, and expects operating earnings growth to average ~1% annually over next three years, below 2% in FY26 
** Although, Morningstar said the market was underrating co's income resilience, citing low vacancy, and like-for-like income growth at 3% due to fixed and inflation-indexed reviews
** Citi keeps "buy", and Morningstar says securities are "attractive" and "undervalued", citing co's ~7% distribution per security yield
** YTD, shares were down ~10% as of last close 




 (Reporting by Shruti Agarwal in Bengaluru)
 ((Shruti.Agarwal@thomsonreuters.com;))