CLW - Charter Hall Long WALE REIT

[divs4ever]

https://www.livewiremarkets.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBNnM1Q2c9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--55e23c69f643d1e4e86edc7cd2339570cf40c57d/Reporting%20Season%20Monitor%20-%20Feb%202024%20-%20Week%201.pdf

includes some opinions on CLW by professional investors

 

[Logique2]

i agree, I don’t want to be to heavy in office property, it’s good to have some good high quality offices in the portfolio.

crack open that CLW half year results presentation again and have a look at the back where they break down their portfolio by type and give the property valuations, cap rates, and WARR(weighted average rent reviews), it’s really interesting to compare, the office property has higher cap rates and larger rental increases than the other sectors, so it’s good to have some in there.

check out the Arnotts factory they own, a 28year lease with CPI + 0.5% rental increase every year, that’s a lot better than a bond, you can’t tell me 28 years that property won’t be worth more than it is today, and per year income increases compounds too.


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Nice post VC, and the pics.
Trend is our friend, with this and others similar in the sector.
Dexus Convenience Retail (DXC) is in my ASF comp stock picks 2024 thread..

 

[Logique2]

Valuations are not to important in the short term, they move around with interest rates, I thing I like love about CLW is the fantastic property portfolio, and the steady rental increases built in to their leases.

All thats happened is interest rates have come up fairly quicking, obviously faster than the rental increases have come in which has caused their dividend to drop from 7 cents to 6.5 cents, and the valuation of the properties to come down reflecting that.

But, if you stand back and look at the big picture, The rental increases will keep coming year after year, (look at the last few pages of their half year report presentation for a break down), but interest rates can't keep rising. So it will all balance out and the income will be great, and the valuations will rise over time with inflation once this temporary re adjustment of interest rates is done.

I hold, and will probably be holding in 20 years time, its a great little income generator in my portfolio.

Yes this nails the big picture.

And as you imply VC, REIT's aren't tech stocks for volatility trading..

 

[divs4ever]

Charter Hall WALE Limited (CHWALE) as responsible entity of the Charter Hall Long WALE REIT (ASX:CLW) announces that Peeyush Gupta has resigned as a Director of CHWALE, effective immediately.

The Board of CHWALE has resolved to appoint current CHWALE Non-Executive Director and current Chair of the Audit Risk and Compliance Committee (ARCC), Glenn Fraser, as Chair.
The Board has also resolved to appoint Ray Fazzolari to the Board as a Non-Executive Director.
Mr Fazzolari will replace Mr Fraser as Chair of the ARCC.
Ray has extensive industry experience in the financial sector and commercial property industry over 40 years through various cycles and market conditions.
Ray’s executive career includes 3 years with the St Hillier's Group as the General Manager of Development, 16 years with the Leda Group of Companies as the Managing Director and a further 10 years with Citi as the General Manager of Commercial Finance.
Ray currently serves as a Non-Executive Director of Charter Hall Investment Management Limited, the responsible entity of CPOF and CPIF, Charter Hall’s flagship unlisted wholesale office and industrial funds.
Glenn Fraser, Chair of CHWALE, said: “I am privileged to assume the role of Chair at this important time for the REIT and look forward to working with my fellow Directors to provide secure and stable income and continued growth opportunities for our investors.
On behalf of the Board, I would like to thank Peeyush for his significant contribution to CLW since its inception in 2016 and his guidance as Chair over that time.
We wish him all the best for the future.
I am also pleased to welcome Ray Fazzolari to the Board.
Ray’s deep experience across all aspects of real estate funds management over many years and through cycles will assist the Board seamlessly continue to execute on its current strategy.
We look forward to his contribution.”

Announcement Authorised by the Board

i hold CLW

 

[divs4ever]

Progress on Asset Sales

21 June 2024

Charter Hall WALE Limited ACN 610 772 202 AFSL 486721 Responsible Entity of Charter Hall Long WALE REIT Level 20, No.1 Martin Place Sydney NSW 2000 GPO Box 2704Sydney NSW 2001 T +61 2 8651 9000www.charterhall.com.au

Charter Hall Long WALE REIT (ASX: CLW) announces progress on previously forecast divestments inline with CLW’s gearing reduction strategy.

At CLW’s half year results in February 2024, CLW announced that it had completed or was unconditional on $145.8 million of asset disposals.
These disposals have now all settled.
Also at this time, CLW announced that it had greater than $500 million of additional divestments in various stages of due diligence.

CLW now advises that a total $684.5 million (inclusive of the $145.8 million previously flagged) of divestments have been settled or unconditionally exchanged of which $225.3 million is subject only to FIRB approval.

These disposals consist of $225.3 million of agri-logistics, $152.1 million of social infrastructure, $96.8 million of office, $96.3 million of retail and $114.1 million of industrial property.

The combined FY24 passing yield of these disposals is 6.1%.Following these sales CLW’s pro-forma1 balance sheet gearing is 29.3% and look through gearing is 36.4%.

Announcement Authorised by the Board

i hold CLW

need something a lot closer to $3 ( or less ) before throwing more cash at this

 

[Logique2]

Dividend yield 7.5% not good enough for you Divs?

What can you get on the ST money market?
Not as much as that.

Easing bias from here.

 

[divs4ever]

Dividend yield 7.5% not good enough for you Divs?

What can you get on the ST money market?
Not as much as that.

Easing bias from here.

i hold , but i can always try to bring the average down

in 2011 to 2016 in was getting 10%( plus ) on corporate debt , and sometimes getting a discount to face value as well

besides i reckon actual inflation is still 7% to 8% per annum oh oh oh and don't forget the tax on that income

it isn't as rosy as it looks in investing world

 

[divs4ever]

BTW the second last parcel i bought was @ $3.345 in September last year , am getting a fair few of these i prefer diversity ( even in REITs )

 

[wayneL]

oh oh oh and don't forget the tax on that income

it isn't as rosy as it looks in investing world

The elephant in the room.

 

[eskys]

@divs, CLW, I'm done

 

[divs4ever]

@divs, CLW, I'm done

i try to build at sensible intervals and at sensible prices ( unless the carnage is knee-deep )

i won't say never , but above $3.10 is unlikely ( for me )

 

[eskys]

Doesn't look like carnage at this stage, but looks can be deceptive as we all know. To be safe, I prefer to treat it as a traders' market, divs.

 

[divs4ever]

Doesn't look like carnage at this stage, but looks can be deceptive as we all know. To be safe, I prefer to treat it as a traders' market, divs.

well an associate ( not the trader buddy ) was planning a 'reverse index strategy about two weeks back , this guy is more investor than trader but he does play some short/mid term trends with some success

traders' markets can be good as well ... but little nibbles for me ( most of the time )

 

[eskys]

well an associate ( not the trader buddy ) was planning a 'reverse index strategy about two weeks back , this guy is more investor than trader but he does play some short/mid term trends with some success

traders' markets can be good as well ... but little nibbles for me ( most of the time )

Little nibbles at the price price pay dividends. If I have to hold something, this is one I'd like to think I can hold. Very often I can't stick to my plans and promises

 

[divs4ever]

Little nibbles at the price price pay dividends. If I have to hold something, this is one I'd like to think I can hold. Very often I can't stick to my plans and promises

yeah , but how much is too much , i hold several rival REITs as well and some in reasonable-sized parcels ( for me )

remember i am playing some REITs as 'bond substitutes '

 

[eskys]

The REITs are good until they aren't, enjoy while that lasts

 

[divs4ever]

The REITs are good until they aren't, enjoy while that lasts

i am looking for survivors that will pay income , most of the time

but unrealized losses look very possible in the foreseeable future

 

[Dona Ferentes]

from another thread .. eskys , it belongs here !

When the US reported a cooler-than-expected inflation print last Thursday – which drove a sharp downward move for bond yields – I kept thinking about this line from an old Morgan Stanley report:

“Charter Hall is by far the most linked to bond yields. Its P/E multiple has a -0.77 correlation vs. Australian 10 year bond yields, and -0.68 vs. US 10 year Treasury yields … This means that as bond yields decline, the multiples of these two stocks generally re-rate upwards."

Charter Hall was one of the best performing REIT stocks in the past week or so and using the cooler-than-expected CPI print as a buy signal would have worked out relatively well.

Here’s how Charter Hall performed post-CPI:

• Friday, 12th July open – Up 3.3% to $11.94
• Friday, 12th July session high – Up 8.1% to $12.50
• Friday 12th, July close – Up 5.2% to $12.15

It opened relatively flat on Monday but rallied intraday to a 4.8% gain.

It’s pulled back over the course of the week but still 7.5% higher post-CPI.

So next time you see a big downward move in bond yields, remember Charter Hall

 

[divs4ever]

from another thread .. eskys , it belongs here !

When the US reported a cooler-than-expected inflation print last Thursday – which drove a sharp downward move for bond yields – I kept thinking about this line from an old Morgan Stanley report:

“Charter Hall is by far the most linked to bond yields. Its P/E multiple has a -0.77 correlation vs. Australian 10 year bond yields, and -0.68 vs. US 10 year Treasury yields … This means that as bond yields decline, the multiples of these two stocks generally re-rate upwards."

Charter Hall was one of the best performing REIT stocks in the past week or so and using the cooler-than-expected CPI print as a buy signal would have worked out relatively well.

Here’s how Charter Hall performed post-CPI:

• Friday, 12th July open – Up 3.3% to $11.94
• Friday, 12th July session high – Up 8.1% to $12.50
• Friday 12th, July close – Up 5.2% to $12.15

It opened relatively flat on Monday but rallied intraday to a 4.8% gain.

It’s pulled back over the course of the week but still 7.5% higher post-CPI.

So next time you see a big downward move in bond yields, remember Charter Hall

both @eskys and i bought today ( apparently during the open )

now i like CLW but my position is getting close to uncomfortably large ( for me )

unless my sentiment changes in a major way i will probably only buy one more moderate size parcel around $3.20 ( or lower )

will be looking more intensely at different REITs in the near future

cheers