Waypoint REIT (ASX: WPR) – Files 1H2026 Half Year Results Presentation

Waypoint REIT has reaffirmed its FY26 distributable earnings per security (DEPS) guidance at 17.14 cents, representing 3% growth on FY25, after delivering a first-half result that demonstrates the portfolio’s ability to generate rental growth even as property valuations face downward cap rate pressure. The company reported 1H26 distributable earnings of 56.1 cents per security, up 3.4% from 55.6 cents in the prior corresponding period, while net tangible assets per security rose 0.7% to $2.92.

The headline numbers mask a steady operational performance. Management guided that quarterly distributions for the second half of 2026 will increase to 4.32 cents from 4.25 cents in the first half, maintaining a 100% payout ratio for the full year. This distribution growth is supported by rental income of $83.5 million, up from $82.4 million in 1H25, with like-for-like rent growth of approximately 3% offsetting the impact of property settlements completed in 2H25 and 1H26. The portfolio’s weighted average cap rate moved from 5.61% in December 2025 to 5.71% in June 2026, reflecting a 10 basis point expansion that was contained by contracted rental reviews captured in the June valuations.

Portfolio quality remains a key strength. The 394-asset portfolio achieved 99.9% occupancy by income and a weighted average lease expiry of 5.9 years as at 30 June 2026. The company achieved strong outcomes on lease renewals, with 26 of 28 FY26 lease expiries resolved through options being exercised or terms being extended. This generated a 97.2% retention rate by income and a 10.3% rental reversion on renewed leases. The portfolio maintained a 89.9% allocation to triple net leases by income, with 92% of the portfolio weighted to metropolitan and highway locations across the eastern seaboard.

Capital management remains prudent. Gearing stood at 32.4% at 30 June 2026, at the lower end of the company’s 30% to 40% target range. The company refinanced $250 million of debt in the first half through a new 6-year AMTN issue while repaying $250 million of syndicated bank facilities, achieving a modest 5 basis point saving on the margin. The weighted average hedge maturity is 2.5 years, with 95% of 2H26 exposure hedged. Management has targeted $10 million to $20 million of non-core asset sales in the second half, subject to market conditions, following the May settlement of the Nowra property for $6.1 million.

The company’s largest tenant, Viva Energy Australia, reported record underlying earnings with convenience and mobility EBITDA up 86% in 1H26. However, the broader fuel and convenience sector continues to navigate structural headwinds including the transition toward electric vehicles, with the company noting that EV market share of new vehicle sales reached 25.8% in 1H26. With 33 fuel and convenience leases expiring in 2027, representing approximately 7% of income, investors should monitor the outcome of the landlord-initiated renewal process for the 28 IPO-era leases due to expire in August 2027.

View the full ASX announcement (PDF)

About Waypoint REIT Ltd (ASX: WPR)

Waypoint REIT Ltd is Australia’s largest ASX-listed REIT specializing exclusively in fuel and convenience retail properties. The company owns a portfolio of approximately 402 service stations across all Australian states and territories, with the majority located in capital cities and major urban areas. The portfolio is predominantly leased to Viva Energy, an ASX-listed operator.

If you would like to discuss this announcement or how it might affect your portfolio, request a callback or call us on 1300 889 603.