Australia's Charter Hall Long WALE REIT falls, Citi downgrades to 'neutral'

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%