If I buy $6,000 of this top ASX REIT, how much dividend income will I receive in 2027?

The real estate investment trust (REIT) Charter Hall Long WALE REIT (ASX: CLW) may be the best option for high passive income on the ASX from the property sector.

There are plenty of compelling options on the ASX for distributions such as Scentre Group (ASX: SCG), Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI) and Rural Funds Group (ASX: RFF).

There are a few things that make Charter Hall Long WALE REIT stand out as a compelling option for passive income.

Let's run through those positives and consider how much passive income a $6,000 investment could unlock.

Generous dividend payout ratio

One of the biggest factors that determines how large an ASX share's dividend yield is relates to the dividend payout ratio. In the case of an ASX REIT, it's the distribution payout ratio.

The metric tells investors how much of its profit it's paying out as passive income. The higher the payout ratio, the larger the yield will be. However, that means less money is retained in the business.

Charter Hall Long WALE REIT currently operates with a 100% distribution payout ratio, meaning all of the rental profit each year is paid to investors.

Large distribution yield

The other factor that determines the distribution yield is the valuation. For REITs, I think it's useful to look at whether there's a discount between the unit (share) price and the net tangible assets (NTA) per unit.

The NTA includes the property values, the size of the loans, the cash and so on.

As at 30 June 2026, the business reported that its NTA was $4.71. At the time of writing, it's trading at a 30% discount to NTA.

Due to that huge discount, the distribution yield is particularly high.

It has guided that it will pay a distribution of 25.5 cents per security, which is a distribution yield of 7.75%, at the time of writing.

Diversified portfolio

The ASX REIT owns a variety of properties in its portfolio, which is a great element of the business considering how that gives it a wide array of investment opportunities and reduces risk exposure.

Its investments include government tenants (such as GeoSciences Australia), hotels, grocery and distribution, telecommunication exchanges, data centres, service stations, banking and professional services, food manufacturing, healthcare, Bunnings properties and more.

Organic growth of rental income

Despite headwinds from higher interest rates, the business forecasts that it can maintain its distribution in FY27. I think an important part of that is that it has built-in rental growth.

In FY26, the business reported 3.1% average annual net property income growth, with 54% of lease rent increases being CPI-linked and the rest being fixed increases.

Regular income growth is a tailwind for future growth in the distribution and property prices, particularly as interest rates begin to decline again.

$6,000 investment in the ASX REIT

An investment of $6,000 in Charter Hall Long WALE REIT could unlock plenty of passive income in FY27. That would allow someone to buy 1,829 units of the ASX REIT.

Based on the FY27 projected payout, the total distribution could be $466.40. I'd be happy to make that investment today.

The post If I buy $6,000 of this top ASX REIT, how much dividend income will I receive in 2027? appeared first on The Motley Fool Australia.

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026