Company Reports

Waypoint REIT's first-half distributable earnings per security increased 3% to 8.59 cents as 3% like-for-like rent growth and the on-market security buyback offset higher interest costs. Management reaffirmed 2026 distributable EPS guidance of 17.14 cents, up 3% from 2025.

Waypoint REIT is an internally managed Australian real estate investment trust. It owns a portfolio of about 400 service station properties, mainly leased to ASX-listed Viva Energy. About 80% of the portfolio by value is in capital cities and other urban areas, with the remainder evenly split between highway locations and small towns.

Waypoint REIT is an internally managed Australian real estate investment trust. It owns a portfolio of about 400 service station properties, mainly leased to ASX-listed Viva Energy. About 80% of the portfolio by value is in capital cities and other urban areas, with the remainder evenly split between highway locations and small towns.

Waypoint's security price has fallen about 8% in the past 12 months, like most REITs, as rising interest rates reduce the appeal of property. It trades at a 20% discount to net tangible asset backing of AUD 2.90 per security and offers a forward yield of 7.4%, based on guidance.

Waypoint REIT is an internally managed Australian real estate investment trust. It owns a portfolio of about 400 service station properties, mainly leased to ASX-listed Viva Energy. About 80% of the portfolio by value is in capital cities and other urban areas, with the remainder evenly split between highway locations and small towns.

Waypoint REIT’s 2025 distributable earnings were broadly unchanged from last year, at AUD 110 million, or AUD 16.64 cents per security, as 3% like-for-like rent growth was mainly offset by higher interest expenses. Management expects distributable earnings to rise 3% to AUD 17.14 cps in 2026.

Waypoint REIT is an internally managed Australian real estate investment trust. It owns a portfolio of about 400 service station properties, mainly leased to ASX-listed Viva Energy. About 80% of the portfolio by value is in capital cities and other urban areas, with the remainder evenly split between highway locations and small towns.

Waypoint's stock price has increased 12% year to date, with a share buyback helping it outperform the S&P/ASX 200 AREIT index's 5% increase. However, it still trades at a 10% discount to net tangible assets backing of AUD 2.89 per security.

Waypoint REIT is an internally managed Australian real estate investment trust. It owns a portfolio of about 400 service station properties, mainly leased to ASX-listed Viva Energy. About 80% of the portfolio by value is in capital cities and other urban areas, with the remainder evenly split between highway locations and small towns.

Waypoint REIT's first-half 2025 distributable earnings were flat at AUD 55.6 million, or AUD 8.31 cents per security, as higher interest costs offset 3% like-for-like rent growth. Management upgraded full-year guidance by 1% to AUD 16.64 cps, mainly on the on-market security buyback.

Waypoint REIT's share price has rallied 15% since the March 2025 low, aided by the announcement of a AUD 50 million on-market unit buyback. Key tenant, Viva Energy, has not asked Waypoint to help fund redevelopments yet, but Waypoint has the financial strength to do so.

Waypoint REIT’s 2024 distributable earnings were AUD 111 million, flat from the previous year as solid rental growth of 3.1% was offset by higher debt. The result was close to our expectations.

Waypoint REIT is an internally managed Australian real estate investment trust. It owns a portfolio of about 400 service station properties, mainly leased to ASX-listed Viva Energy. About 80% of the portfolio by value is in capital cities and other urban areas, with the remainder evenly split between highway locations and small towns.

We retain our AUD 2.80 per share fair value estimate for no-moat Waypoint REIT and consider the REIT undervalued after recent security price weakness. Waypoint trades at a 14% discount to fair value and net tangible asset backing. It offers an attractive yield of 6.9%, though we expect limited distribution growth in the medium term.

Waypoint REIT is an internally managed Australian real estate investment trust. It owns a portfolio of about 400 service station properties, mainly leased to ASX-listed Viva Energy. About 80% of the portfolio by value is in capital cities and other urban areas, with the remainder evenly split between highway locations and small towns.

Waypoint REIT’s first-half earnings align with our expectations and are on track to deliver the full-year guidance. For the six months ending June 2024, the REIT’s distributable earnings were AUD 56 million, flat on the previous corresponding period. Rental income increased by 3.1% on the PCP, while operating expenses fell 8% thanks to lower property-related costs, which were offset by higher interest expenses. Distributions of AUD 8.24 cents per security are slightly below earnings per security of AUD 8.28 cents. Management guidance for earnings per security of AUD 16.48 cps is at the upper end of the original guided range and on par with last year, with lower earnings expected in the second half due to rising debt costs. Our unchanged 2024 forecasts are in line with the guidance.

Like many of its peers, shares in no-moat Waypoint REIT have sold off and now look attractive. Shares trade at a 20% discount to our unchanged AUD 2.80 per share fair value estimate, offering a big forecast distribution yield of 7.3%. Admittedly, we expect distributions to remain flat for the medium term as rising interest rates offset contracted rental uplifts, but growth should return in a few years.

Waypoint REIT is an internally managed Australian real estate investment trust. It owns a portfolio of about 400 service station properties, mainly leased to ASX-listed Viva Energy. About 80% of the portfolio by value is in capital cities and other urban areas, with the remainder evenly split between highway locations and small towns.

Waypoint REIT’s 2023 distributable earnings fell 5% to AUD 111 million as asset sales and a higher cost of debt offset solid like-for-like rental growth of 3.4%. With the benefit of the on-market buyback, distributable earnings and distributions were flat on a per-security basis at AUD 16.48 cents, in line with our expectations. Guidance is for distributable earnings per security to be flat again in 2024 as the cost of debt continues to rise or go down 1% if the trust manages to offload AUD 80 million of noncore properties flagged for sale.

The federal government’s migration review was released on Dec. 11 and it suggests high population growth remains the status quo. The review tinkers with various visa rules, but contains no major reduction in migrant numbers, suggesting high migration will persist, relative to precoronavirus levels and versus other developed countries.