This article is from the Australian Property Journal archive
SERVICE station owner Waypoint REIT reported a higher statutory net profit driven by positive valuation gains as the trust looks to pursue $95 million worth of divestments in the year ahead.
Although distributable earnings were unchanged at $55.6 million in 1H24 from the previous corresponding period, the REIT’s investment portfolio improved by $35.70 million in 1H24 compared to a decline of $31.1 million in 1H23, which resulted a statutory net profit of $93.3 million from $29.1 million in the pcp.
Net tangible assets per security at 30 June 2024 was $2.79, up $0.06 or 2.1% since 31 December 2023.
The trust’s 402 properties portfolio was valued at $2.806 billion at 30 June 2024, the weighted average capitalisation rate was 5.74% at 30 June 2024 (an increase of 6 bps from 5.68% at 31 December 2023).
The cap rate movement was not uniform with NSW recording the greatest expansion over 24 months by 102bp since June 2022, followed by VIC (67 bps); TAS (65 bps); QLD (54 bps); WA (51 bps); SA (46 bps); NT (27 bps) and ACT (6 bps).
The portfolio average over 24 months was 73 bps.
The portfolio weighted average lease expiry was 7.6 years and occupancy was 99.9% at 30 June 2024.
Over the next 12 months, CEO Hadyn Stephens said the trust’s priorities is to convert 30 stores across its network to the OTR format.
At the same time, the REIT is reviewing its portfolio to identify non-core investments.
“WPR is cautiously optimistic on transaction market conditions (improving sales volumes, dovish FY25 interest rate outlook, banks reducing deposit rates),”
Stephens said the trust is currently marketing eight assets worth $40 million.
It has already sold the Shell Emerald petrol station in regional Queensland for $2.70 million at a cap rate of 7.50%. The sale price is a discount to the December 2023 valuation of $2.80 million.
Furthermore the REIT has identified a further nine assets as non-core to be sold over time, worth around $45 million.
