CLW -5.71%: Was a very interesting result today with worthwhile takeaways for our thinking on the broader property sector. While we have not had any interest in owning CLW for some time, given we viewed it as akin to buying a longer-dated bond that would struggle in a rising rate environment.
CLW is a long WALE REIT mainly with government tenants hence stable and low-risk income with duration making it the ideal candidate to be first when we decide to catch the property “falling knife”. Its already forecast to yield ~7.5% over the next 12-months which by definition will go up if the stock continues to fall. – MM is already finding CLW tempting!
This conservative property group that generally owns government tenanted buildings yesterday launched a bid in partnership with HostPlus to buy pub group ALE Property Group (LEP) at a huge 53% premium to their last stated net asset value. Obviously pubs are mostly closed however if things go back to normal and they start to collect rents as usual, the proposed...
Charter Hall Long WALE REIT (CLW) holds long duration leases that are negatively impacted by rising interest rates, a theme we're starting to see play our in global bond markets. With cash low in the Income Portfolio, we see better opportunity elsewhere.
We are selling CLW for a loss.
Charter Hall Long WALE REIT (CLW) operates as a real estate investment trust. The Company invests in office, industrial, and retail properties that are leased to corporate and government tenants on long-term. CLW operates in Australia only.
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