Waypoint (WPR) H2 2024 earnings summary

Executive summary

• FY24 distributable EPS was 16.48 cents, at the top end of guidance and flat year-over-year, supported by stable rental income and disciplined cost management.

• Portfolio value increased 1.1% to AUD 2.8 billion, with NTA per security up 1.1% to AUD 2.76 and 99.9% occupancy.

• Gearing at 32.6% remains 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 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

• Statutory net profit after tax was AUD 131.5 million, rebounding from a AUD 79.1 million loss in FY23, mainly due to a AUD 28.4 million revaluation gain.

• Distributable earnings and EPS stable at AUD 110.7 million and 16.48 cents, respectively.

• Rental income rose to AUD 162.3 million (+AUD 4.8 million year-over-year); MER held at 0.30%.

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

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

Outlook and guidance

• FY25 distributable EPS guidance is 16.48 cents, assuming no major acquisitions or redevelopments.

• 40-60 OTR conversions expected in FY25, with indicative funding needs of AUD 60-100 million.

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

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