Waypoint REIT reported a 3.4% year-on-year increase in distributable earnings per security to 8.59 Australian cents for the first half of fiscal 2026, though its shares slipped 0.41% to $2.40.
Net tangible assets per security rose to AUD 2.92, up 2 cents from the prior period, while statutory profit totaled AUD 65.8 million, primarily driven by valuation movements. Rental income grew 1.3% year-on-year, with like-for-like growth of 3%. The management expense ratio stood at 31 basis points on an annualized basis, while return on equity reached 19.4%. Gearing remained near the lower end of the target range at 32.4%, with a weighted average cost of debt of 4.7%.
The REIT completed AUD 44 million in non-core asset sales across 2025 and H1 2026, including the AUD 6.1 million disposal of the Nowra asset in May 2026. It targets further sales of AUD 10 million to AUD 20 million in 2026. All 28 leases expiring in 2026 were resolved, with tenants retained on 26 sites and a 10.3% positive reversion achieved on renewals. For 2027, 33 leases representing about 7% of total rental income are set to expire.
Waypoint also refinanced debt by completing a AUD 250 million six-year Australian Medium Term Note program in June, replacing bank facilities and extending its weighted average debt maturity to 3.8 years. The new AMTN carried a margin of 156 basis points. Full-year cost of debt guidance was reiterated at around 5%, with 95% of debt hedged for H2 2026.
Viva Energy, Waypoint’s major tenant, reported a 154% surge in group EBITDA, driven by an 86% increase in convenience and mobility business EBITDA. Fuel volumes rose 2%, while convenience sales excluding tobacco increased 1.3%. Tobacco sales declined 16.8% year-on-year but were noted as stabilizing after prior volatility. The REIT’s largest tenant also slowed its network rollout in H1, with 19 OTR conversions completed and 25 to 30 unattended self-service format conversions expected in H2.
Waypoint reaffirmed full-year dividend per security guidance at AUD 0.1714, implying 3% growth. The REIT’s shares trade at a P/E ratio of 7.99 with a dividend yield of 7.01%, sitting 4.8% above its 52-week low and 14.9% below its high.
