Charter Hall Long WALE REIT's (ASX:CLW) fiscal 2026 guidance and fiscal 2025 results "surprised on the upside," benefiting from AU$750 million of incremental hedging at a low rate and accretive asset recycling, Jarden Research said in a note on Wednesday.

The real estate investment trust reported fiscal 2025 earnings of AU$0.2106 per security for the parent entity, swinging from a loss of AU$0.6728 a year earlier. Revenue for the 12 months ended June 30 was AU$183.6 million, compared with AU$219.7 million a year earlier.

The investment firm believes it is a good time in the cycle to acquire assets from motivated sellers, and that the assets acquired and initial yields look consistent with the firm's strategy and provide potential upside to earnings. If it can continue to sell non-core assets and reinvest proceeds in new investments, this should continue to speed up its growth profile.

It expects the REIT's funds from operations compound annual growth rate to be below the sector average over the next three years.

The investment firm retained its underweight rating for the REIT and upgraded its price target to AU$4.20 from AU$4.05.

The REIT's shares rose almost 3% in recent Thursday trade, earlier hitting their highest since March 2023.