Buying up Bunnings, David Jones and Myers stores is serving Charter Hall Long WALE REIT well, making share price gains after revealing its $1.4-billion buying spree.
Share prices for CLW jumped more than 2.8 per cent, pushing the company into the S&P/ASX200 top five gains—but this was small in comparison to Suncorp’s 7.84 per cent gain and News Corps’ -7.95 per cent loss after posting 2021 financial results recently.
The listed property fund spent $638 million on retail acquisitions during the year, including a 50 per cent interest in the Sydney flagship David Jones store in December and 33.3 per cent interest in the Melbourne flagship Myer Bourke Street Mall in June.
The 20-year, triple-net-lease back to David Jones and 10-year lease back to Myer boosted the property portfolio performance, bringing its operating earnings to $159.0 million, up 3.2 per cent on last year.
▲ The David Jones Elizabeth Street store was sold to a consortia of Charter-Hall-managed funds for $510 million, while the Melbourne Myers went for a total purchase price of $267m.
Seventy BP New Zealand stores and a Bunnings property to be developed in Caboolture, Queensland along with an established store in Perth added to the acquisition list.
There was also $361 million spent on social infrastructure, $311 million on office acquisitions and $83 million for industrial and logistics properties in Australia.
CLW fund manager $1.4 billion Avi Anger said the weighted average lease expiry was now at 13.2 with 48 per cent accounting for triple-net-leases.
“FY21 has seen the CLW portfolio continue to grow in a measured way, enhancing portfolio quality, improving asset and tenant diversification and providing investors with a growing income stream,” Anger said.
“The portfolio is highly diversified across 468 properties valued at $5.6 billion.”
The result indicates a complete turnaround of the retail sector in the past 12 months with property valuations on the up as the national property sector continues to improve.
Meanwhile, for retail, tenants sales have increased by 9.2 per cent for the year, according to the latest Australian Bureau of Statistics data.
However, the full extent of the latest lockdowns is yet to impact the data, along with rent relief offered by landlords during this time.
Article Source: www.theurbandeveloper.com
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