Charter Hall lease extensions increase portfolio duration
Key points
- Charter Hall Long WALE REIT executed lease extensions with government tenants, increasing its portfolio duration from 9.2 years to 9.4 years.
- The company maintained a property occupancy rate of 99.9% while securing rental rate increases across key assets.
- The transactions resolve all upcoming material lease expirations for the trust across the FY27 and FY28 financial years.
Charter Hall Long WALE REIT (ASX:CLW) extended multiple government leases to push its weighted average lease expiry from 9.2 years to 9.4 years while preserving a 99.9% portfolio occupancy rate.
The lease extensions build on the trust's previous portfolio metrics of 99.9% occupancy and a 9.2-year duration recorded at the end of June 2026.
"The lease extensions announced today represent all upcoming material lease expiries for CLW in FY27 and FY28," said Charter Hall Long WALE REIT Fund Manager Avi Anger.
Under the agreements, the Department of Defence extended its Campbell Park lease in Canberra by five years to June 2032 with 3% annual rent increases.
Additionally, the Australian Taxation Office extended its lease at Smollett Street in Albury through September 2027 and agreed to an 18-month extension in Adelaide to April 2029 with a 3.75% rent increase.
Following the announcement, the Charter Hall Long WALE REIT share price was unchanged at $3.46.
The trust holds a property portfolio valued at $6.1 billion that spans convenience retail, industrial, data centres, and office assets.
Management continues to execute a capital rotation strategy, having completed $324 million in property divestments and $572 million in new acquisitions during FY26.
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