Slide 1: HY20 Results Presentation
HY20 Results Presentation 20 August 2020 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 VVR operates and “Waypoint REIT”) which is a stapled entity comprising shares in This presentation contains sta
Slide 3: Leading national service station and convenience retail network providing essential economic infrastructure
Leading national service station and convenience retail network providing essential economic infrastructure National network Portfolio Predictable income Growth via Conservative One of the lowest of 474 strategically distribution aligned supported combination of target gearing MERs in the located se
Slide 4: Contents
Contents 1. HY20 Highlights 5 2. Financial Results 7 3. Capital Management 11 4. Portfolio Update 14 5. Key Priorities and Outlook 18 6. Appendices 20 7. Glossary 26
Slide 5: HY20 Highlights
rsint HY20 Highlights
Slide 6: HY20 Key Highlights
HY20 Key Highlights Financial Performance Portfolio and Acquisitions Capital Management Business Update Distributable Earnings: 7.41cps1 Acquisitions - $39.7m invested at 6.34%3 c.A$250m USPP issuance + $325m bank Internalisation debt refinanced 3.2% growth on HY19 5 new properties (4 stabilised, 1
Slide 7: Financial Results
rsint Financial Results
Slide 8: Financial Performance
Financial Performance1 Distributable earnings up 3.2% due to rent increases and acquisitions Half year Half year $4.8m increase in rental income attributed 30 Jun 2020 30 Jun 2019 Change to c.3% annual rental escalations and incremental $m $m $m income from acquisitions and fund-through Income dev
Slide 9: Reconciliation to Statutory Profit
Reconciliation to Statutory Profit1 141% increase in Statutory profit largely driven by valuation gains Half year Half year Net revaluation gains ($73.6m) comprise 30 Jun 2020 30 Jun 2019 Change gross revaluation gains of $86.6m net of write off $m $m $m of acquisition costs ($2.4m) and straight-l
Slide 10: Balance Sheet
Balance Sheet1 Valuation gains drive 4.4% NTA increase and hold gearing at bottom of range As at As at Investment properties increased $126.0m, representing Balance Sheet 30 Jun 2020 31 Dec 2019 Change acquisition and development spend ($39.7m) and valuation $m $m $m gains arising from independent
Slide 11: Capital Management
rsint Capital Management
Slide 12: Capital Management
Capital Management Liquidity strengthened by c.A$250m USPP issuance and $325m refinancing Review Event: As at As at Waivers received in relation to $976.7m of facilities (89% Debt management 30 Jun 2020 31 Dec 2019 of total debt) $m $m $20m term loan repaid Facility limit1 1,250.3 1,096.7 Te
Slide 13: Capital Management
Capital Management Tenor of swap book extended, increasing WPR's hedge maturity to 2.9 years Events during the period As at As at Derivative management 30 Jun 2020 31 Dec 2019 Maturity of swaps with a notional value of $196.5m extended to Aug '25 $m $m % debt fixed 88.3% 94.1% $20m swap closed
Slide 14: Portfolio Update
rsint Portfolio Update
Slide 15: HY20 Acquisitions and Developments
HY20 Acquisitions and Developments Five properties acquired for $32.5m at 6.25% Price Cap Rate 70% metro by value Location Tenant Lease Reviews $m / Coupon WALE Four stabilised assets ($27.3m at 6.39%) Acquisitions One development site (Greenvale, $5.2m at Redcliffe, WA Metro VEA Double Net
Slide 16: Valuations
Valuations Independent valuations carried out on 157 properties as at 30 June 2020, with a further 317 properties subject to directors' valuations Gross valuation uplift of $86.6 million, largely attributable to rental increases1 Portfolio WACR tightened by 2bp from 5.81% to 5.79%2 Gross 31 De
Slide 17: Portfolio Overview
Portfolio Overview WPR Portfolio as at 30 June 2020 Geographic split as at 30 June 2020 Avg. Site Avg. No. of Value Value Area Value2 WACR WALE Properties ($m) (%) (m2) ($m) (%) (years) Metropolitan1 318 2,035.2 72 3,693 6.4 5.41 11.6 6.9% NT Regional1 156 785.9 28 6,714 5.0 6.78 10.8 Total 474 2,82
Slide 18: Key Priorities and Outlook
Key Priorities and Outlook 18
Slide 19: Key Priorities and Outlook
Key Priorities and Outlook Service stations retain “essential" designation in all states/territories (incl. Victoria) COVID-19 No current fuel tenants qualify for Government-mandated rental relief Actively engaging with qualifying non-fuel tenants in Victoria regarding extended rent relief F
Slide 20: Appendices
rsint Appendices
Slide 21: Internalisation Update
Internalisation Update Implementation deed executed on 14 May 2020 Estimated Expense $m Internalisation to occur on or before 31 October 2020 with a target date of 30 Facilitation payment payable to VEA 2.5 September 2020 Run-off insurance expense (in favour of VER Manager & VER 1.4 Ltd) All e
Slide 22: Lease Expiry Profile
Lease Expiry Profile One of the longest WALEs in the S&P/ASX 200 REIT Index (11.3 years) Only five leases expire over the next five years (1.2% of income) Initial IPO portfolio lease expiries commence in FY2026 Staggered lease renewal profile mitigates against renewal concentration risk Port
Slide 23: Portfolio Evolution
Portfolio Evolution IPO As at 30 June 2020 August 2016 FY16 FY17 FY18 FY19 HY20 Number of properties no. 425 425 438 454 469 474 Property portfolio value1 $m 2,105 2,105 2,281 2,496 2,698 2,821 Occupancy % 100 100 100 100 100 100 Total land area sqm 1,903,422 1,903,422 1,959,739 2,107,937 2,198,086
Slide 24: HY 2020 Acquisitions
HY 2020 Acquisitions 439 Great Eastern Highway, 416 Princes Highway, 25 Wills Road, 825 Mickleham Road, Lot 50 Mandurah Road, Site Address Redcliffe, WA Colac West, VIC Emerald, QLD Greenvale, VIC Meadow Springs, WA Region Metro Regional Regional Metro Metro Acquisition / Acquisition Acquisition Acq
Slide 25: HY 2020 Acquisitions
HY 2020 Acquisitions 25 Wills Road, Emerald, QLD 416 Princes Highway, Colac West, VIC Lot 50 Mandurah Road, Meadow Springs, WA 439 Great Eastern Highway, Redcliffe, WA 825 Mickleham Road, Greenvale, VIC 25
Slide 26: VEA Overview
VEA Overview1 Strategic national retail network and infrastructure Darwin Cocos Islands 24% of the Australian downstream petroleum market2 1,297 Service station sites nationwide in Viva Energy’s network 46 fuel import terminals and depots3 nationally to support operations 19 52 airports and airfield
Slide 27: VEA's HY20 Results
VEA’s HY20 Results1 Alliance volumes recovering, improved retail margins VEA reported its results for the six months ended 30 June 2020 on HY20 HY19 Variance August 17th $m $m Volume (ML) 6,381 7,126 (10.5%) Average Alliance sales volumes of 54.1ML/week in HY20 Compares with ~60ML/week in HY19
Slide 28: Glossary
rsint Glossary
Slide 29: Glossary
Glossary Cap Rate Capitalisation rate Covenant Gearing Calculated as total liabilities to total tangible assets, but excluding any mark-to-market valuations of derivative assets/liabilities COVID-19 Infectious disease caused by a newly discovered coronavirus in 2019. COVID and COVID-19 are utilised
Slide 30: Glossary
Glossary Metropolitan region Properties that are located within the Urban Boundary, which is sourced from the Australian Bureau of Statistics (ABS 2016 Significant Urban Area (SUA) boundary) Moody’s Moody’s Investors Services Net Interest Expense Finance costs less finance income NTA Net tangible as
Slide 31: Waypoint REIT
Way|=n’ REIT