Charter Hall Long WALE REIT announced that it has entered into an agreement with Inghams in relation to an extension of the lease terms on a number of properties in the portfolio which was recently acquired by the REIT.
The leases of properties representing 62% of the recently acquired portfolio by income have been extended for terms ranging from 22 years to 34 years.
Details of the extended lease terms are as follows:
15% of the portfolio by income has been extended to a WALE of 22 years;
16.5% of the portfolio by income has been extended to a WALE of 30 years; and
30.5% of the portfolio by income has been extended to a WALE of 34 years.
This has resulted in the Inghams portfolio WALE increasing from 15.8 years to approximately 24.6 years.
The REIT will provide Inghams with an $8 million capital incentive as part of this arrangement. Including the extensions, the REIT’s pro forma portfolio WALE as at 31 December 2018 increases from 11.6 years to 12.6 years.