Citi has decreased Charter Hall Long WALE REIT (ASX:CLW)’s price target, reflecting a revision of its earnings estimates due to mounting debt expenses.

The brokerage reduced the price target for the real estate investment trust to A$4.0 from A$4.4, maintaining a ‘neutral’ rating.

Citi suggests that the ascent in debt costs in fiscal year 2024 is likely to surpass the robust rent growth.

Charter Hall Long WALE REIT’s fiscal year 2024 earnings per share guidance of 26 AU cents was 8% below the consensus and 10% beneath Citi’s initial expectations.

The brokerage predicts the fiscal year 2024 earnings per share to be 26.5 AU cents, deeming management’s guidance as ‘conservative’, and acknowledged the instability due to fluctuating interest rates.

Among nine analysts, six rated the stock ‘hold’ and three ‘sell’, with a median price target of A$4.34, based on Refinitiv data.

The stock has seen a downtrend of about 14% YTD, as per the last closing.

Charter Hall Long WALE REIT (ASX:CLW) is a real estate investment trust with a diverse portfolio of high-quality properties.