The ASX stock Charter Hall Long WALE REIT (ASX: CLW) is a leading candidate for regular passive income thanks to its quarterly distribution frequency.
It’s a real estate investment trust (REIT) that owns a diversified portfolio of different defensive tenant industries including government tenants (such as Geoscience Australia), pubs, grocery and distribution, data centres, telecommunication exchanges, service stations, food manufacturing, Bunnings properties and more.
The portfolio is spread across Australia’s states and territories, as well as a small portion in New Zealand.
The ASX stock reported its result for the six months to 31 December 2025. The numbers are one of the main reasons why I think the business is a buy.
Good passive income
Charter Hall Long WALE REIT reported that its operating earnings per security (EPS) grew 2% to 12.75 cents. With its 100% distribution payout ratio, the distribution per unit was also hiked by 2% to 12.75 cents.
The business has provided guidance that it’s going to grow its distribution per unit by 2% to 25.5 cents in FY26, paid quarterly. That translates into a distribution yield of 6.8%, which is a very strong level of income, in my view.
At that level, to make $2,000 of annual passive income, we’d need to own 7,844 units of the ASX stock.
Why I think it’s a good time to invest
It’s good to see rental and earnings growth by the business. It reported 3% growth in like-for-like net property income (NPI), which is a solid rate of progress and helps offset inflation.
The business looks undervalued considering it reported its net tangible assets (NTA) rose by 2% since 30 June 2025 to $4.68. That means, at the time of writing, it’s trading at a 20% discount, which I think is an attractive discount.
The portfolio is in a good position, with a portfolio occupancy rate of 99.9% and a weighted average lease expiry (WALE) of around nine years. This means investors have a very high level of rental income security over the next few years.
The post I’d buy 7,844 shares of this ASX stock to aim for $2,000 annual passive income appeared first on The Motley Fool Australia.
Should you invest $1,000 in Charter Hall Long WALE REIT right now?
Before you buy Charter Hall Long WALE REIT shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Charter Hall Long WALE REIT wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 Jan 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- 2 high yield ASX shares I’d buy after their results
- Is this the right time to invest in ASX defensive shares?
- Where I’d invest in ASX shares if the RBA increases the interest rate
- 3 top ASX dividend share buys for passive income in February
- Here’s how you could turn the stock market into a $1,000 monthly passive income machine
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.