Waypoint (WPR) H2 2024 earnings summary

Executive summary

• FY 2024 distributable EPS was 16.48 cents, matching guidance and supported by stable rental income and disciplined cost management.

• Investment portfolio value rose 1.1% to $2.8 billion, with NTA per security up 1.1% to $2.76 and 99.9% occupancy.

• Gearing at 32.6% remained at the lower end of the 30-40% target range, with liquidity of $148.5 million and a Baa1 Moody's rating.

• Two non-core assets sold at a 3.8% premium to book value; three more in due diligence.

• ESG targets achieved, including a 75% reduction in measured emissions and maintenance of carbon neutral status.

Financial highlights

• Distributable earnings totaled $110.7 million, with rental income rising to $162.3 million and operating EBIT at $152.6 million.

• Statutory net profit was $131.5 million, reversing a $79.1 million loss in FY23, mainly due to a $28.4 million property revaluation gain.

• Like-for-like rental growth was 3.1% year-over-year, driven by fixed rent reviews and CPI-linked escalations.

• MER held at 30bp, among the lowest in the S&P/ASX 200 REIT Index.

• Final distribution for Q4 FY24 was 4.12 cents per security.

Outlook and guidance

• FY 2025 distributable EPS guidance is 16.48 cents, assuming no acquisitions or major redevelopments.

• 40-60 Express sites expected to convert to OTR in FY25, with indicative funding needs of $60-100 million.

• Transaction markets expected to remain active, supported by potential RBA rate cuts.

• Cap rates expected to stabilize, with 3% rent reviews across 93% of the portfolio reflected in June valuations.

• OTR conversions expected to accelerate, targeting 100 per year from 2026.