Buyback Pause and Asset Sales Raise Questions for Waypoint REIT Investors

Portfolio Valuations Reflect Strength

Waypoint REIT has completed its mid-year valuation process for its extensive portfolio of 400 fuel and convenience retail properties, reporting a solid 3.4% increase in portfolio value to nearly $2.89 billion. This uplift was driven primarily by contracted rental increases and a modest tightening of the weighted average capitalisation rate from 5.72% to 5.66%, signaling continued investor confidence in the sector.

The valuations were a mix of independent assessments on 83 properties and directors’ valuations on the remaining 317, with all figures pending final auditor review. The estimated net tangible assets (NTA) per security rose by 13 cents, or 4.7%, to $2.89, reflecting the portfolio’s enhanced value and other balance sheet movements including derivatives mark-to-market adjustments.

Buyback Program Paused Amid Review

Waypoint REIT had initiated an on-market buyback program in April 2025, targeting up to $50 million in securities repurchases. Prior to the half-year mark, the company had acquired 12.6 million securities at an average price of $2.60, spending $32.9 million. However, the buyback is currently paused as the company undertakes its half-year review process, leaving investors to watch closely for any indication of when or if the program will resume.

Non-Core Asset Sales Progress

In addition to the portfolio valuation update, Waypoint REIT has been actively managing its asset base by selling or entering unconditional agreements to sell six non-core properties, including the Reddy Express Toowoomba site settled earlier in February. These sales, valued at $34.5 million, were transacted at a slight 1.0% discount to their December 2024 book values. Three of these properties settled in July, with the remaining two expected to close in the second half of 2025.

This strategic pruning of non-core assets aligns with Waypoint’s objective to focus on its core fuel and convenience retail property network across Australia, aiming to maximise long-term returns for securityholders.

Looking Ahead

While the half-year results are encouraging, the final valuations and NTA figures remain subject to auditor confirmation, which could influence the company’s reported financial position. The pause in the buyback program introduces some uncertainty, as investors await clarity on capital management plans. Meanwhile, the ongoing asset sales suggest a continued focus on portfolio optimisation.