The ASX dividend stock Charter Hall Long WALE REIT (ASX: CLW) could be one of the smartest ideas to buy right now. It offers investors significant passive income at a very discounted price.
As the above chart shows, the real estate investment trust (REIT) has suffered a decline of 37% since April 2022, and it's down 26% from September 2025.
Those declines occurred despite the business continuing to generate very solid rental income and paying good distributions during that period.
The REIT could be a very good buy today for the following reasons.
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Diversification
The business has a widely diversified commercial property portfolio across various subsectors, but the properties are united by long-term leases with tenants. At the end of December 2025, it had a weighted average lease expiry (WALE) of 9.3 years – that's a lot of rental income already locked in.
Its portfolio spans a number of sectors, including government-tenanted properties (such as Geosciences Australia), pubs and hotels, grocery and distribution, telecommunications exchanges, data centres, service stations, food manufacturing, waste and recycling management, Bunnings properties, and so on.
The company has a number of high-quality tenants such as government entities, Endeavour Group Ltd (ASX: EDV), Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), Metcash Ltd (ASX: MTS), Westpac Banking Corp (ASX: WBC) and Wesfarmers Ltd (ASX: WES).
With an occupancy rate of 99.9%, the ASX dividend stock is maximising the rental potential of its portfolio.
Excellent passive income
Its solid rental income is translating into a pleasing distribution, despite the headwinds of higher interest rates.
The business expects to pay an annual distribution of 25.5 cents per security in FY26. That translates into a distribution yield of 7.5%. Not many property businesses are delivering returns as high as that.
I'm not sure what the FY27 payout will be, but I expect it will be similar. Plus, the business has rental indexation built into its contracts with tenants, with either fixed annual increases or the rises are linked to inflation.
The ASX dividend stock trades at a big discount
One of the main reasons why the yield is so high is that the business is trading at a large discount to its underlying value.
REITs regularly tell investors the net value of their businesses, which is the value of the properties and other assets minus the loans and other liabilities. What's left is the net asset value (NAV), or net tangible assets (NTA), per share.
The business reported that its NTA at 31 December 2025 was $4.68. That means, at the time of writing, it's trading at a 27% discount to this figure. While one could argue about the underlying value of the properties, the distribution is paid from clear rental profits generated, which translate into a large yield.
It's a great ASX dividend stock, though it's not the only investment I'd happily make today.
