Analyst Note| Alexander Prineas |
We initiate on Charter Hall Long WALE REIT, or CLW, with a fair value estimate of AUD 5.10. Its diversified portfolio spans office, retail, industrial, social, and agricultural property. Income for the next decade looks secure, thanks to long leases (average 12.2 years as at Dec. 31, 2021) and strong tenants. Key valuation inputs are the discount rate, rental uplifts on existing leases, renewal terms when existing leases expire, and likely future purchases by this acquisitive REIT. These factors produce a medium uncertainty rating.