Waypoint (WPR) H1 2025 earnings summary

Executive summary

• Distributable EPS increased 0.4% year-over-year to 8.31cps, mainly due to a security buyback that is about two-thirds complete.

• NTA per security rose 4.7% to AUD 2.89, driven by valuation gains and capital management initiatives.

• Statutory net profit for the half reached AUD 137.1 million, up 47% year-over-year, primarily from portfolio valuation movements.

• Portfolio value reached AUD 2.89 billion, with 99.9% occupancy and a 6.6-year WALE.

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

Financial highlights

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

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

• Statutory net profit after tax rose to AUD 137.1 million in 1H25 from AUD 93.3 million in 1H24, mainly due to higher investment property valuation gains.

• Operating expenses increased due to higher property costs, while corporate costs remained flat.

• Management expense ratio improved to 0.30%, among the lowest in the S&P/ASX 200 A-REIT index.

Outlook and guidance

• FY25 DEPS guidance was upgraded by 1% to 16.64c, exceeding 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.