Charter Hall Long WALE REIT plans to divest over $500 million in commercial properties to alleviate its increased gearing level, resulting in a $258.4 million statutory loss for its 2024 interim earnings.

Despite already selling $145.82 million in assets in the half-year to December 2023, additional divestments are deemed necessary to achieve a healthier gearing level.

The trust's look-through gearing rose to 41.2%, prompting the divestment strategy.

Although $306 million in write-downs impacted the diversified portfolio valued at $6.5 billion, the trust's fund manager, Avi Anger, remains cautiously optimistic about market activity and potential future deals.