Waypoint REIT’s Buyback and Debt Extensions Signal Cautious Confidence

Solid Earnings and Portfolio Growth

Waypoint REIT has delivered a stable financial performance in the first half of 2025, reporting distributable earnings of $55.6 million, consistent with the prior corresponding period. Notably, statutory net profit jumped to $137.1 million, up from $93.3 million a year earlier, reflecting favourable valuation adjustments and operational efficiencies.

The REIT’s property portfolio, focused exclusively on fuel and convenience retail sites across Australia, was valued at $2.89 billion at the end of June 2025. This represents a $96 million uplift during the period, driven by independent valuations on a significant portion of the portfolio. Occupancy remains exceptionally high at 99.9%, supported by a weighted average lease expiry of 6.6 years, underscoring the portfolio’s stability and long-term income visibility.

Capital Management and Debt Strategy

Waypoint REIT continues to maintain a conservative capital structure with gearing at 32.7%, comfortably within its 30-40% target range. The company has proactively extended key debt facilities, including a $50 million bilateral bank facility extended to March 2028 and a $150 million syndicated loan extended to May 2028. These moves lengthen the weighted average debt maturity to 3.9 years, reducing refinancing risk in the near term.

Liquidity remains robust with $120.7 million available at the half-year mark, and 89% of debt hedged with an average hedge maturity of 2.7 years. These factors provide a solid financial foundation amid ongoing market uncertainties.

Asset Sales and Buyback Activity

During the period, Waypoint REIT progressed the sale of non-core assets, exchanging contracts on five properties for $34.5 million, slightly below book value. Four of these have since settled, contributing $29.3 million in net proceeds. This streamlining aligns with the REIT’s strategy to focus on core assets that drive long-term value.

In addition, the REIT has initiated an on-market buyback program of up to $50 million, having already repurchased 12.6 million securities for $32.9 million at an average price of $2.60 per security. This move signals confidence in the underlying value of the securities and aims to enhance returns for remaining investors.

Outlook and Guidance

Looking ahead, Waypoint REIT has raised its full-year distributable earnings per security guidance to 16.64 cents, representing a modest 1% increase over 2024 and prior forecasts. This cautious optimism reflects the REIT’s strong operational footing and disciplined capital management, though it remains contingent on stable market conditions.

Investors will be watching closely how the REIT navigates potential headwinds such as interest rate fluctuations and property market dynamics in the second half of the year.