** Shares of Australia's Charter Hall Long WALE REIT CLW.AX fall 1% to A$4.545

** Analysts at Citi Research downgrade co to "Neutral" from "Buy", based on a muted growth outlook

** Expect operational earnings to grow at around ~3% over the next few years, as CPI decreases to normal levels

** Say co has historically relied on acquisition-led-growth, but deals announced with August results increase pro-forma gearing closer to ~40%, which is higher than most peers and towards the higher end of management's tolerance range

** See some scope for cap rate compression and asset value upside over the next year, but expect the process to be slower for co

** Modestly increase price target to A$4.70 from A$4.59, reflecting an improving commercial property cycle

** YTD, stock up 21.5%

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))