Slide 1: 1H21 Results Presentation
1H21 Results Presentation 27 August 2021 Hadyn Stephens – CEO Kerri Leech – CFO
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Waypoint REIT (“WPR” or Industry data and third party market data exchange rates, competition in the markets in which WPR operates “Waypoint REIT”) which is a stapled entity comprising shares in This presentation contains statist
Slide 3: WPR Investment Proposition
WPR Investment Proposition Secure rental income with embedded growth, underpinned by long-term leases to top-tier tenants ESSENTIAL ECONOMIC INFRASTRUCTURE WORLD-CLASS OPERATORS • Roadside retail properties catering for F&C • VEA supplies approximately one-quarter of operators focused on everyday ne
Slide 4: Contents
Contents: 1. 1H21 Highlights 5 2. Financial Results 8 3. Portfolio Update 12 4. Key Priorities and Outlook 18 5. Additional Information 20 6. Glossary 31
Slide 5: 1H21 Highlights
1H21 Highlights 5
Slide 6: 1H21 Highlights
1H21 Highlights Strong growth in Distributable EPS and NTA per security, gearing remains below revised target range Financial Performance Property Portfolio Capital Management Business Update Distributable EPS: 7.81cps1 $2.94bn portfolio2 Gearing: 27.3% Five new leases/options finalised +5.4% on 1H2
Slide 7: ESG Update
ESG Update WPR published Modern Slavery Statement, quantified base year carbon emissions & identified path to net zero Focus Area / Key Matter Key Matters Stakeholders UNSDGs FY21 Actions Ethical Conduct and Governance, Employees/ Modern Slavery: Transparency Compliance, Communities/ - Issued first
Slide 8: Financial Results
Financial Results 8
Slide 9: Financial Performance
Financial Performance Strong growth in DEPS driven primarily by higher rental income and lower interest expense 1H21 1H20 Change Change $m $m $m % Rental income 81.7 79.1 2.6 3.3 $2.2m of like-for-like rental growth (2.9%), $0.9m of income from net acquisitions/developments offset by $0.5m lower dev
Slide 10: Balance Sheet
Balance Sheet Strong growth in NTA per security driven by 19bp of WACR compression across WPR’s ongoing portfolio Jun-21 Dec-20 Change Change $m $m $m % Cash and cash equivalents 15.0 15.5 (0.5) (3.2) Includes the Fawkner Portfolio ($113.9m) and 12 other assets ($35.3m). Assets held for sale and oth
Slide 11: Debt / Liquidity
Debt / Liquidity $100m of bank debt refinanced during period with no debt expiries until June 2023 Jun-21 Dec-20 Change Facility limit ($m) 1,050.0 1,050.3 (0.3) Asset disposal proceeds used to temporarily repay debt. Drawn debt ($m)1 858.0 872.3 (14.3) $140.2m of available liquidity to fund selecti
Slide 12: Portfolio Update
Portfolio Update 12
Slide 13: Portfolio Overview
Portfolio Overview1 Geographically diversified portfolio with a strong weighting to Metro locations along the eastern seaboard Avg. Site Avg. No. of Value Value Area Value WACR WALE Properties ($m) (%) (m2) ($m) (%) (years) Metro 300 2,166.7 74 3,696 7.2 5.05 10.6 6.9% NT Regional 127 772.4 26 7,553
Slide 14: Lease Expiry Profile
Lease Expiry Profile Portfolio WALE of 10.5 years with a staggered expiry profile • Only two fuel leases expiring prior to FY26 (0.6% of income) • Two non-fuel tenancies are currently vacant, with a further 10 non-fuel leases expiring prior to FY26 (0.5% of income) • Staggered lease renewal profile
Slide 15: Valuations
Valuations WACR compression of 19bp across WPR’s ongoing portfolio in 1H21 • Gross valuation uplift of $189.8 million (6.6%) recorded in 1H21, including $176.1 million (6.4%) on WPR’s ongoing portfolio • WACR on WPR’s ongoing portfolio compressed 19bp from 5.56% to 5.37% • Rents on 71 of 80 properti
Slide 16: Non-Core Disposals
Non-Core Disposals Strong pricing achieved to date via both public auction and off-market transactions • 37 assets exchanged and/or settled for an average premium to prevailing book value of 10.8% • The sales have delivered a combined unlevered IRR of 11.3% (35 of the 37 properties were acquired at
Slide 17: Business Update: Leasing
Business Update: Leasing Five new leases/options to renew finalised with a 3.5% uplift in rental income • 99.4% of fuel income now contractually secured until May 2026, with only two fuel leases expiring during this period (Fawkner (2023) and Rouse Hill (2025)) • No non-fuel lease expiries until Aug
Slide 18: Key Priorities and Outlook
Key Priorities and Outlook 18
Slide 19: Key Priorities and Outlook
Key Priorities and Outlook Focused on active portfolio management and optimising capital structure Portfolio Actively manage the portfolio to improve overall quality and maximise returns (noting strength of market) Optimisation Selective approach to acquisitions, continue to evaluate opportuniti
Slide 20: Additional Information
Additional Information 20
Slide 21: Reconciliation to Statutory Profit
Reconciliation to Statutory Profit Statutory profit increased 83.9% largely due to valuation gains recorded during the period $m 1H21 1H20 Change Change $m $m $m % Distributable earnings 61.3 57.8 3.5 6.1% Net gain on sale of investment properties 0.6 - 0.6 100.0% Gain on sale of Klemzig, SA net of
Slide 22: Debt/Liquidity
Debt/Liquidity Weighted average debt maturity of 4.1 years and weighted average hedge maturity of 1.9 years Debt maturity profile as at 30 June 2021 Swap maturity profile as at 30 June 2021 400 100% 3.00% 2.72% 90% 350 90% 2.50% 336 80% 300 50 70% 1.88% 1.78% 2.00% 250 52 60% 1.50% 1.50% 1.50% 58% $
Slide 23: Viva Energy Australia – 1H21 Results
Viva Energy Australia – 1H21 Results1 Strong improvement at Group level driven by return to profitability of Refining • Group Highlights: $m 1H21 1H20 Change – Underlying EBITDA (RC) up 95% to $256.3m and Underlying NPAT (RC) Sales volumes (litres, billions) 6.7 6.4 0.3 up 359% to $111.9m, primarily
Slide 24: Coles Express – FY21 Results
Coles Express – FY21 Results1 Strong c-store sales and cost control support a doubling of EBIT • Sales revenue up 7.7% (6.8% on a comparable basis), driven by food-to- $m FY21 FY20 Change go (including coffee) and cold drinks, supported by recent investments in Key P&L items: new self-serve coffee m
Slide 25: F&C Assets: Investment Market Update
F&C Assets: Investment Market Update Strong market conditions continued for F&C assets in 1H21 • Transaction numbers up ~40% and transaction volumes up ~80% compared with 1H20 • Key markets of NSW/VIC/QLD make up ~90% of transaction volumes, with Metro sites accounting for ~60% of transactions by nu
Slide 26: IPO Portfolio vs. Government Bonds and Term Deposit Rates
IPO Portfolio vs. Government Bonds and Term Deposit Rates Spread to bank term deposits remains elevated, spread to 10-year bond in line with long-term average • As of June 2021: – The yield spread between WPR’s IPO assets and the 10-year Australian Government Bond was ~375bp (in line with 5-year ave
Slide 27: Global EV Sales Market Share (2020)
Global EV Sales Market Share (2020) Australia continues to be a global laggard in terms of EV take-up • 6,900 EVs sold in Australia in 2020 (0.8% of all light vehicles sales), up from 6,718 (0.7%) in 2019 • 76% of EVs sold in Australia in 2020 were battery electric vehicles, with plug-in hybrid elec
Slide 28: Annual EV Sales - Australia
Annual EV Sales - Australia EV sales have shown strong growth in 1H21, but still represent <2% of total sales • Approximately 1 million new light vehicles are sold each year in Australia • EVs comprised 0.8% of sales in 2020 and 1.6% of sales in 1H21 10,000 5% 9,000 8,688 8,000 4% 6,900 7,000 6,718
Slide 29: Public EV Charging Infrastructure
Public EV Charging Infrastructure Low EV take-up remains the biggest barrier to sustained investment in charging infrastructure • In the last 12 months there has been a significant increase in the rollout of public chargers, with ~3,000 public chargers now installed across Australia at over 1,650 lo
Slide 30: Retail Fuel Prices and Margins
Retail Fuel Prices and Margins Industry margins remain resilient despite strengthening oil price and softer diesel margins • Average retail margin of 15.0cpl for the 12 months to June 2021 (FY21) is down slightly on FY20 (16.1cpl) and CY20 (18.2cpl), but still ~13% higher than 10-year average • Reta
Slide 31: Glossary
Glossary 31
Slide 32: Glossary
Glossary ABS Australian Bureau of Statistics. AIP Australian Institute of Petroleum. ASX Australian Securities Exchange. A-MTN Australian Medium-Term Notes. Alliance A long-term agreement between Coles Express and VEA in respect of the operation of a national network of retail fuel and convenience s
Slide 33: Glossary
Glossary FTE Full Time Equivalent (employee). Fawkner Fawkner Property Ltd in its capacity as trustee for various trusts. Fawkner Portfolio Sale of 31 assets to Fawkner (per ASX announcement dated 30 July 2021). FY Financial year. GHG Greenhouse gases. Gearing Net debt (excluding foreign exchange an
Slide 34: Glossary
Glossary Regional All other properties not located within Greater Capital City Statistical Areas (GCCSAs) and/or adjacent Significant Urban Areas (SUAs). The review event triggered under WPR’s debt facilities as a result of VEA’s sell down of its securityholding in WPR in February 2020. As a result,
Slide 35: Focused on maximising long-term income and capital returns
Focused on maximising long-term income and capital returns Excellence Respect Trust Integrity Doing our best, and For our people, Building and maintaining Operating in an always looking for community, environment, long-term relationships ethical manner that is ways to do better customers and investo