Waypoint (WPR) H1 2025 earnings summary

Executive summary

• Distributable EPS for the half-year rose 0.4% year-over-year to 8.31cps, mainly due to a reduced number of securities from a buyback that is two-thirds complete.

• NTA per security increased by 4.7% to $2.89, driven by valuation gains from cap rate compression and rent reviews.

• Statutory net profit for the half reached $137.1 million, up from $93.3 million in 1H24, primarily from portfolio valuation movements.

• Portfolio value reached $2.89bn, up 3.3% from December 2024, with 99.9% occupancy and a 6.6-year WALE.

• Five non-core assets sold for $34.5 million at a 1% discount to book value; buyback program ~66% complete.

Financial highlights

• Distributable earnings for the half were $55.6 million, in line with the prior period.

• Rental income grew 2.6% year-over-year, with like-for-like growth of 3%.

• Operating expenses increased due to higher property costs, while corporate costs remained flat; MER at 0.30%.

• Statutory net profit was $137.1 million, up $43.8 million year-over-year, mainly from a $96.8 million revaluation gain.

• Portfolio weighted average cap rate decreased to 5.66% from 5.72% at December 2024.

Outlook and guidance

• FY25 distributable earnings per security guidance raised to 16.64c, up 1% from FY24 and prior guidance.

• Quarterly distributions for 2H25 to increase to 4.20cps, reflecting a 100% payout ratio.

• No significant OTR funding requirements expected in 2025; focus on 2026 and beyond.

• Guidance assumes no material changes in current market or operating conditions.