Lease extensions lift CLW portfolio WALE to 9.4 years
Charter Hall Long WALE REIT (ASX: CLW) has completed lease extensions with long-term government tenants that increase its weighted average lease expiry (WALE) from 9.2 years to 9.4 years. Stabilised portfolio occupancy remains at 99.9%.
The WALE figure is as at 30 June 2026, pro forma adjusted for a transaction completed post balance date, as disclosed in CLW’s 2026 Full Year Results. The extensions cover all upcoming material lease expiries for CLW in FY27 and FY28.
Avi Anger, CLW Fund Manager
“…These lease extensions push out the expiry dates of these leases, enhance the security of the REIT’s income and extends the portfolio WALE to 9.4 years.”
For investors, the extensions mean longer income visibility from government tenants.
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Three government lease extensions at a glance
The update covers three properties, each leased to a government tenant:
- Campbell Park, Canberra: Department of Defence, five-year extension
- 520 Smollett Street, Albury: Australian Taxation Office (ATO), 10-year extension
- 12-26 Franklin Street, Adelaide: ATO, 18-month extension
| Property | Tenant | CLW interest | Extension | New expiry |
|---|---|---|---|---|
| Campbell Park, Canberra ACT | Department of Defence | 49.9% | Five years | 14 June 2032 |
| 520 Smollett Street, Albury NSW | ATO | 50% | 10 years on levels 1-5 and part ground floor | Commences on expiry of current lease on 30 September 2027 |
| 12-26 Franklin Street, Adelaide SA | ATO | 50% | 18 months | 30 April 2029 |
Campbell Park, Canberra
The property is fully leased to the Commonwealth Government and forms part of Canberra’s Defence Precinct, providing specialised administrative offices for the Department of Defence. CLW acquired its 49.9% interest in July 2025, when two years remained on the lease.
The extension moves the expiry from 14 June 2027 to 14 June 2032. Current rent is unchanged until the renewal term begins, when it will increase by 3%, followed by annual increases of 3% during the extended term.
520 Smollett Street, Albury
CLW holds a 50% interest in the A-grade office building. The ATO has agreed a 10-year extension over levels 1-5 and part of the ground floor, totalling 8,473 sqm (79% of the building by area).
The ATO has also agreed a 12-month extension over level 6 (1,690 sqm or 16% by area), extending that lease expiry to 30 September 2028. Market-related rent and an incentive have been agreed for the renewal.
12-26 Franklin Street, Adelaide
CLW holds a 50% interest in this A-grade office building. The ATO occupies 30,979 sqm of net lettable area, representing 84% of the building by area, with the balance occupied by BHP, Australia Post and other government tenants.
The ATO has advised that it has committed to a new building and will vacate the premises. An 18-month extension has been agreed at the current face rent increased by 3.75%, with no incentive payable, extending the tenancy to 30 April 2029.
The extension secures income for a further period while CLW and its co-owner implement a re-leasing strategy, with agents appointed to lease the property.
What a long WALE means for REIT investors
WALE stands for weighted average lease expiry. It measures the average time remaining on a portfolio’s leases, weighted by rent, so a higher figure indicates tenants are contracted for longer.
CLW invests in Australasian real estate predominantly leased to corporate and government tenants on long term leases. A longer WALE matters to investors because it supports:
The FY26 results also detail a $6.1 billion portfolio with annual contracted rent increases across every lease, and a net revaluation uplift of $188 million that lifted NTA per security.
- Income security: rent is contracted for longer periods
- Occupancy: stabilised portfolio occupancy remains at 99.9%
- Reduced near-term expiry risk: the extensions cover all upcoming material lease expiries in FY27 and FY28
FY27 guidance reaffirmed with 7.3% yield
Based on current information and barring unforeseen events, CLW reaffirms FY27 guidance of operating earnings per security of 25.5 cents and distributions per security of 25.5 cents.
Based on CLW’s closing security price on 3 November 2026, FY27 distribution guidance represents an annual distribution yield of 7.3%.
What happens next for CLW
Key milestones stated in the update:
- Albury level 6: agents are being appointed to lease the level following the ATO’s planned vacation of the floor in September 2028.
- Adelaide: CLW and its co-owner are implementing a re-leasing strategy, with agents appointed, ahead of the ATO’s lease end on 30 April 2029.
- Albury 10-year extension: the ATO extension commences on expiry of the current lease on 30 September 2027.
- Campbell Park: the renewal term begins after the current expiry of 14 June 2027, when rent will increase by 3%.
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