Waypoint (WPR) H2 2025 earnings summary

Executive summary

• Distributable EPS for FY 2025 was AUD 0.1664 (16.64 cents), up 1% year-over-year and in line with guidance.

• Statutory net profit exceeded AUD 200 million, driven by AUD 102.2 million in property revaluation gains.

• NTA per security rose 5% to AUD 2.90, supported by revaluation gains.

• Six non-core assets were sold for AUD 40.6 million at a 0.4% discount to book value, funding 80% of the buyback.

• 97% retention rate on FY 2026 lease expiries, with 11.7% average rental uplift on renewals.

Financial highlights

• Rental income grew to AUD 165.5 million (+AUD 3.2 million), with like-for-like rental growth of 3%, partially offset by asset sales.

• Operating EBIT was AUD 155.2 million, up AUD 2.6 million year-over-year.

• Operating expenses rose due to higher property-related costs, including land tax and repairs.

• MER remained stable at 30 basis points, among the lowest in the S&P/ASX REIT 200 index.

• Weighted average cost of debt increased to 4.8%, below the 5% guidance.

Outlook and guidance

• FY 2026 distributable EPS guidance is AUD 0.1714 (17.14 cents), representing 3% growth.

• Targeting AUD 10–20 million in non-core asset sales per year, subject to market conditions.

• 90% of FY 2026 debt is hedged, providing cost certainty; cost of debt expected to rise to ~5%.

• Exploring early refinancing to further reduce debt costs.

• Expectation of continued market caution, especially for secondary assets, due to potential rate increases.