Charter Hall Long WALE REIT have revalued their portfolio upwards following the external valuation of 93% of the portfolio.
The new valuation reflects an increase of $30.6M, representing a 1.9% increase over the June year end numbers. The increased valuations were derived in part by a 7bps sharper cap rate to a WACR of 6.04%.
The majority of the increase came in the retail sector where $15M was added from a 10bps sharper cap rate to 5.79%. The majority of Charter Halls Long WALE REIT retail assets are Hotel assets leased to ALH Group on triple net lease structures with all maintenance capital expenditure paid by the tenant. By comparison, the listed ALE Property Group which owns 86 pubs around Australia, (also fully leased to ALH Group), holds their assets on a 4.98% yield.
The results across the portfolio are highlighted in the table below;