Waypoint (WPR) H2 2024 earnings summary

Executive summary

• FY 2024 distributable EPS was AUD 0.1648 (16.48 cents), at the top end of guidance and flat year-over-year, supported by stable rental income and disciplined cost management.

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

• Gearing at year-end was 32.6%, at the lower end of the 30%-40% target range, with liquidity just under AUD 150 million and a Baa1 Moody's rating.

• Two non-core assets sold for AUD 6.55 million 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

• Net profit after tax was AUD 1.5 million, down 20% year-over-year due to higher interest costs, while statutory net profit was AUD 131.5 million, up from a loss in FY23 due to a AUD 28.4 million revaluation gain.

• Rental income rose to AUD 162.3 million (+AUD 4.8 million year-over-year); operating EBIT increased to AUD 152.6 million (+AUD 5.0 million).

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

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

• Operating expenses declined due to lower property costs and disciplined corporate spending.

Outlook and guidance

• FY 2025 distributable EPS guidance is AUD 0.1648 (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 AUD 60-100 million for all conversions.

• Transaction markets expected to remain active, supported by potential further rate cuts and improved buyer confidence.

• High hedging (93%) and strong liquidity position to support near-term opportunities.