Charter Hall REIT (ASX:CLW) share price flat on notes issuance

The real estate investment trust (REIT) shares are going nowhere today…

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The Charter Hall Long WALE REIT (ASX: CLW) share price remained unchanged today despite announcing the extension of its debt maturity profile.

At the closing bell, the real estate investment trust (REIT) share finished the day at $4.91.

Charter Hall Long extends debt maturity profile

Investors appear unmoved by the company’s latest update, sending Charter Hall Long shares nowhere.

According to its release, Charter Hall Long announced it has secured $200 million of Australian dollar medium term notes. The notes were originally priced at a fixed coupon rate of 2.66% before being swapped to a floating exposure. This provides Charter Hall Long with a weighted average cost of debt of 1.3% per annum.

The notes are expected to settle next Thursday 17 June, increasing the company’s investment capacity to $330 million. In turn, this allows Charter Hall Long to shore up its balance sheet and have significant flexibility in pursuing growth investment opportunities.

Once issued, the notes will have an 8.5-year duration attached, maturing in December 2029.

The weighted average debt maturity profile for the company will be extended to 5.6 years.

Charter Hall Long WALE REIT fund manager, Avi Anger commented:

We are very pleased that CLW was able to complete a repeat issuance in the Australian dollar medium term note market and further extend our debt maturity profile at a competitive funding cost.

CLW’s sector leading long WALE of 13.8 years together with the maturity profile and diversity of our debt are important features that contribute to the investment proposition that CLW offers. The additional investment capacity provides scope for further accretive deployment to drive earnings growth.

The company has staggered maturities arising from FY24 through to FY31.

Charter Hall share price review

The Charter Hall Long share price has moved in circles for the past 12 months, up 10% over the period. The company’s shares reached a high of $5.26 in October last year, before moving sideways.

Based on valuation grounds, Charter Hall Long presides a market capitalisation of roughly $3 billion, with approximately 628 million shares outstanding.

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