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IN Charter Hall Long WALE REIT The share price (ASX: CLW) remained unchanged today, despite the announcement of an extension of the debt maturity.
By the close of trading, the real estate investment fund (REIT) share ended the day at $ 4.91.
Charter Hall Long Extends Debt Maturity
Investors appear to be untouched by the company’s latest update, with the result that Charter Hall Long shares are not going anywhere.
Charter Hall Long announced that it has received $ 200m in Australian dollar-denominated mid-term bonds. The bonds were initially priced at a fixed coupon rate of 2.66% before being swapped for a floating rate. This provides Charter Hall Long with a weighted average cost of debt of 1.3% per annum.
The bonds are expected to be redeemed next Thursday, June 17, bringing the company’s investment capacity to $ 330 million. In turn, this allows Charter Hall Long to strengthen its balance sheet and have significant flexibility in seizing investment growth opportunities.
Once issued, the bonds will have a duration of 8.5 years and mature in December 2029.
The weighted average maturity profile of the company’s debt will be increased to 5.6 years.
Avi Anger, Charter Hall Long WALE REIT Fund Manager, commented:
We are very pleased that CLW was able to complete the re-issue of the Australian dollar mid-term notes in the market and further extend the maturity of the debt at a competitive funding cost.
The CLW sector, which has a leading position in long-term earnings up to 13.8 years, together with the maturities and variety of our debt obligations, are important characteristics that contribute to the investment proposal that CLW offers. Additional investment opportunities provide opportunities for further capacity expansion to drive profitable growth.
The company has staggered maturities ranging from financial years 24 to 31.
Charter Hall Stock Price Review
Charter Hall Long’s share price has fluctuated in a circular motion over the past 12 months, climbing 10% over that period. The company’s shares peaked at $ 5.26 in October last year, after which they began to move sideways.
Based on estimates, Charter Hall Long has a market capitalization of approximately $ 3 billion and has approximately 628 million shares outstanding.