On 3 December 2018, Charter Hall Long WALE REIT (ASX: CLW) announced a distribution of 6.5 cents per security (cps) for the December quarter with ex-date of 28 December 2018, the record date of 31 December 2018 and payment date of 14 February 2019. Further, the company also announced that the Distribution Reinvestment Plan has been reactivated for the 31 December 2018 distribution. Following the release of this news, the share price of the company increased by 1.671 percent as on 4 December 2018.
In addition, the Company also announced that it has undertaken independent revaluations across 79 of the REIT’s 85 properties, signifying 78 percent of the portfolio’s value as at December 2018. These revaluations display a $30.6 million net uplift, representing 1.9 percent uplift overvaluations at 30 June 2018. The remaining six properties of REIT were purchased within the time period of past six months supported by independent valuations and had not been revalued on 31 December 2018.
Recently, the company also confirmed the completion of the Security Purchase Plan (SPP) which was announced earlier on 17 October 2018 in connection with CLW’s $60 million Institutional Placement. The company raised around $11.12 million under Security Purchase Plan with 2,748,168 new securities which were issued to eligible security holders at an issue price of $4.04 per security. In the month of October, the company announced that it has entered into an agreement to fully acquire the interest in an industrial asset and a 50 percent interest in an A-grade office asset for a total consideration of $117.8 million.
During the financial year 2018, the company’s total portfolio value grew by $128 million to $1.53 billion via acquisitions and an increase in property valuations. This increase in total portfolio resulted in annual net tangible asset growth of 2.9 percent to $4.05 per security. At year-end of FY 2018, CLW’s balance sheet gearing was at 30.6 percent which was within its target range of 25% to 35%. In FY 2018, the company reported a statutory profit of $83.3 million and operating earnings of $58.4 million.
During the period, the company has completed several capital management initiatives which include expansion of the Company’ balance sheet debt facility limit by $20 million to $470 million and extending the maturity date to February 2022. Further, the company also completed a $94.1 Mn non-renounceable entitlement offer to fund the Virgin Australia Head Office acquisition.
For FY 2019, the company is targeting its EPS to be in between 26.4 cps and 26.6 cents per security, subject to the reinvestment of proceeds from the sale of 50% of the ATO Adelaide office building. Further, the company is targeting the distribution payout ratio of FY 2019 to be at 100 percent of Operating Earnings.
Meanwhile, the share price of the company decreased by 1.87 percent in the past six months as on 3 December 2018 and traded at a PE ratio of 11.12x. CLW’s shares traded at $4.260 with a market capitalization of circa $1.05 billion as on 4 December 2018 (AEST 2:06 PM).
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