Charter Hall REIT earnings up after acquisition-heavy half

Written on the 10 February 2020 by Business News Australia

Charter Hall REIT earnings up after acquisition-heavy half

A heavy acquisition strategy has paid off for Charter Hall's real estate investment trust (REIT) during 1H20, bagging the company a 206.5 per cent increase to its first half profits.

During the half Charter Hall Long WALE REIT (ASX: CLW) announced $1.4 billion of new property acquisitions across a number of sectors and in partnership with some high-profile tenants.

As a result, the group recorded operating earnings of $52.2 million and a statutory profit of $80.5 million.

"1H FY20 has been another very active period for CLV," says Charter Hall Long WALE REIT fund manager Avi Anger.

"During the period, we enhanced the portfolio through high quality acquisitions that increased earnings, further diversified the portfolio, improved the quality of assets and extended CLW's WALE."

Of the $1.4 billion in new property acquisitions the largest was a $420.1 million acquisition of a 50 per cent interest in a portfolio of 225 long WALE convenience retail properties 100 per cent leased to BP Australia.

The company also made a $349 million acquisition of a 50 per cent interest in a Charter Hall managed partnership in a strategic portfolio of 36 Telco Exchange properties 100 per cent leased to Telstra.

Overall the trust's portfolio is now worth $3.59 billion, with the REIT's diversified portfolio 99.8 per cent occupied and comprised of 384 properties.

As a result of the new acquisitions the company has been able to lift its original earnings guidance from 4 per cent full year EPS growth to 5.2 per cent full year EPS growth for FY20.

Shares in CLW are up 0.36 per cent to $5.53 per share at 10.06am AEDT.

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