CLW – UBS rates the stock as Neutral

Charter Hall Long WALE REIT is raising $250m to acquire $319m worth of assets including 76-78 Pitt Street (Telco exchange leased to Telstra for 10 years).

UBS highlights the benefits of this transaction will be a higher weighting to NSW, increased exposures to triple net leases and lesser gearing. On the flip side, the transaction will lead to earnings dilution of -3-4%.

UBS retains its Neutral rating with a target price of $5.20.

Sector: Real Estate.

Target price is $5.20.Current Price is $4.81. Difference: $0.39 – (brackets indicate current price is over target). If CLW meets the UBS target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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