Slide 1: HY22 Results Presentation
HY22 Results Presentation 29 August 2022 Hadyn Stephens – Managing Director and CEO Kerri Leech – Chief Financial Officer
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. HY22 Highlights 5 2. Financial Results 8 3. Market Update, Valuations and Asset Sales 11 4. Capital Management 16 5. Key Priorities and Outlook 20 6. Additional Information 22 7. Glossary 34 4
Slide 5: HY22 Highlights
HY22 Highlights Hadyn Stephens Managing Director and CEO 5
Slide 6: HY22 Highlights
HY22 Highlights Strong earnings and NTA growth, balance sheet reinforced by valuation uplift and asset sales Financial Performance Property Portfolio2 Capital Management Other Distributable EPS: 8.59cps1 $3.1bn portfolio Gearing: 27.3% ESG +10.0% on 1H21 404 properties 26.1% post-balance date settle
Slide 7: Return on Equity
Return on Equity Active capital management has underpinned a significant improvement in ROE ROE / Gearing1 9.0% 40.0% 8.5% 38.0% 8.5% 36.0% 8.0% 7.9% 34.0% 7.5% 33.6% 7.3% 32.0% 7.2% 30.2% 7.0% 6.8% 30.0% 30.4% 30.1% 6.6% 29.4% 28.0% 6.5% 26.0% 6.0% 26.1% 24.0% 5.5% 22.0% 5.0% 20.0% FY17 FY18 FY19 F
Slide 8: Financial Results
Financial Results Kerri Leech Chief Financial Officer 8
Slide 9: Financial Performance
Financial Performance Strong DEPS growth with rental growth, interest savings and lower securities on issue offsetting asset sales 1H22 1H21 Change Change $m $m $m % Largely due to $3.7m lower income due to asset sales net of $2.4m like-for- Rental income 80.2 81.7 (1.5) (1.8) like rental growth (3.
Slide 10: Balance Sheet
Balance Sheet Cap rate compression continues to underpin growth in NTA per security Jun-22 Dec-21 Change Change $m $m $m % Asset sale proceeds received on 30 June 2022 ($105.7m) used to pay down debt Cash and cash equivalents 114.6 19.0 95.6 503.2 in early July. Assets held for sale and other assets
Slide 11: Market Update, Valuations and Asset Sales
Market Update, Valuations and Asset Sales Hadyn Stephens Managing Director and Chief Executive Officer 11
Slide 12: Investment Market Update
Investment Market Update Transaction volumes down ~30% on prior period but still relatively strong in 1H22 • 1H22 transaction volumes were 32% lower than 2H21 but 18% higher than the prior corresponding period (1H21) • Regional locations accounted for more than 50% of transaction volumes in 1H22 (WP
Slide 13: Valuations
Valuations1 Cap rate compression concentrated in Capital Cities, Highway and Other Metro # of Gross Value ($m)2 WACR (%) Properties @ Jun-22 Dec-21 Jun-22 Variance Dec-21 Jun-22 Change Cap Rate Compression Capital Cities 49 386.1 409.3 23.2 4.78 4.61 (0.17) Rolling 12 months Other Metro 6 55.8 56.9
Slide 14: Non-Core Asset Sales
Non-Core Asset Sales Disposal program has delivered a more resilient investment portfolio 20211 1H22 Total Impact on WPR Portfolio2 Sales Sales Sales Properties sold 40 29 69 (15%) Number of sites owned Gross sale proceeds $137.1m $141.8m $278.9m +8% Average fuel volume per site Premium to book valu
Slide 15: Portfolio Snapshot
Portfolio Snapshot High quality portfolio with 91% weighting to metropolitan and highway locations Avg. Location by Book Value Book Avg. Avg. Popn Value WACR Value Site (500m/ WALE Regional 9% Category Description # (Jun-22) (Jun-22) (Jun-22) Area 3km) (Jun-22) Sydney Highway 21% Capital Cities Capi
Slide 16: Capital Management
Capital Management Kerri Leech Chief Financial Officer 16
Slide 17: Overview
Overview Strong balance sheet position with gearing below target range following recent asset disposals Jun-22 Dec-21 Change Facility limit ($m) 1,048.6 1,048.6 - Inclusive of proceeds from asset sales contracted before 30 June 2022, Drawn debt ($m)1 978.6 955.6 23.0 pro forma liquidity is $199.6m.
Slide 18: Maturity Profiles
Maturity Profiles No debt maturing until FY25 and high proportion of FY22-24 debt hedged - During the period: - New 5-year $80.0 million interest rate caps purchased in May 2022 at an upfront cost of $3.0 million to replace $78.9 million interest rate swaps that matured in August 2022 - Maturity dat
Slide 19: Capital Management Initiatives
Capital Management Initiatives ~$100 million buyback initiated, pro forma metrics remain sound • WPR is currently trading on an FY22 yield of 6.3% and an Gearing 18.6% discount to NTA1 FY21 40.0% Assets sold: 40 Gross proceeds: $137.1m 35.0% 29.4% 30.1% 29.3% Capital returned: $173.3m 30.0% 27.3% 27
Slide 20: Key Priorities and Outlook
Key Priorities and Outlook Hadyn Stephens Managing Director and Chief Executive Officer 20
Slide 21: Key Priorities and Outlook
Key Priorities and Outlook Sell remaining non-core assets and undertake ~$100m on-market buyback program Sell five remaining non-core assets held on balance sheet (three subject to conditional contracts) Investment Cautious approach to acquisitions (both F&C and other asset classes) given macroe
Slide 22: Additional Information
Additional Information 22
Slide 23: Reconciliation to Statutory Profit
Reconciliation to Statutory Profit Valuation gains continue to represent largest difference between Distributable Earnings and Statutory Profit. $m 1H22 1H21 Change Change $m $m $m % Distributable earnings 61.4 61.3 + 0.1 0.2% Lower gross valuation gains due to 10 bp of WACR compression (1H21: 19 bp
Slide 24: F&C Portfolio
F&C Portfolio 91% weighting to metropolitan and highway locations, 84% weighting to Eastern Seaboard 44% 36% Chart Key (% by Value): 10% Capital Cities 20% 21% 54% Other Metro 15% Highway Northern Territory (1%)* 4 properties Regional $19.0m book value Queensland (20%)* Western Australia (9%)* * Den
Slide 25: Lease Expiry Profile
Lease Expiry Profile1 Portfolio WALE of 9.5 years with a staggered expiry profile WALE 9.5 years 25.1% 19.2% 13.7% 7.7% 8.5% 6.7% 6.5% 1.0% 3 5.6% 0.7% 0.2% 2 0.1% 0.4% 0.1% 0.6% 3.9% Vacant FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 1 1 27 31 34 32 29
Slide 26: Long-Term Diversification Strategy
Long-Term Diversification Strategy Disciplined strategy to broaden avenues for growth, mitigate long-term risks and improve ESG profile Portfolio Strategy Execution Considerations IPO portfolio • Sale & leaseback of 425 F&C sites (100% VEA) • Range of asset classes to be considered Asset selection (
Slide 27: Viva Energy Australia – HY22 Result
Viva Energy Australia – HY22 Result1 Strong result underpinned by Refining and Commercial, net cash position of $324m • Group Highlights: $m HY22 HY21 Change – 139% increase in Underlying EBITDA (RC) to $612m underpinned by Retail fuel volumes (litres, billions)2 2.19 2.18 +1% Refining (+747% to $37
Slide 28: Coles Express – FY22 Result
Coles Express – FY22 Result Sales and EBIT impacted by reduced mobility (Omicron, floods) and elevated fuel prices • C-store sales growth negatively impacted by: $m FY22 FY21 Change Key P&L items: – Lower forecourt traffic due to lockdowns – Reduced mobility from Omicron variant and NSW/QLD floods1
Slide 29: Transaction Data: 2019-2022
Transaction Data: 2019-2022 Transaction yields can vary widely based on market, site strength, covenant and lease terms 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 WPR WACR Capital Cities Other Metro Highway Regional Sour
Slide 30: Australian F&C Network Update
Australian F&C Network Update Comment • 196 new sites opened in the 12 months to June 2022, with 64 closures for a net increase of 132 sites (2%) • Growth outside the three majors (e.g. 7-Eleven, OTR, United, Metro), and branded supply (e.g. Shell (ex-Coles Express) or Mobil branded wholesalers) is
Slide 31: Retail Fuel Prices and Margins
Retail Fuel Prices and Margins Retail Fuel Prices have increased sharply, while industry margins sit around 10-year average • Average retail fuel prices in the 12 months to Jun-22 were 36% higher than the previous year (despite temporary 50% excise relief from March 2022) • Average 2021-22 retail ma
Slide 32: IPO Portfolio vs. Bonds and Deposit Rates
IPO Portfolio vs. Bonds and Deposit Rates Comment • As of the end of July 2022: – The yield spread between WPR’s IPO assets and the 10-year Australian Government Bond was 147bp (average since IPO: 359bp) – The yield spread between WPR’s IPO assets and the average 12-month term deposit rate available
Slide 33: National Convenience Store Sales (1H22)
National Convenience Store Sales (1H22) Soft performance driven by lower tobacco sales, adverse weather, fuel prices and staff shortages National YTD: (0.9%) QTR: (0.3%) 2021 2022 2nd Selected categories: Queensland $ share YTD QTR YTD: (0.9%) Tobacco 38.3% (8.4%) (7.1%) Western Australia QTR: +0.6%
Slide 34: Glossary
Wayezint REIT
Slide 35: Glossary
Glossary AACS Australian Association of Convenience Stores AHS Assets held for sale AIP Australian Institute of Petroleum Alliance Arrangement between Coles Express and VEA in respect of the operation of a national network of retail fuel and convenience sites AMTN Australian Medium-Term Notes ASX Au
Slide 36: Glossary
Glossary EBITDA Earnings before interest, tax, depreciation and amortisation EPS Earnings per security ESG Environmental, Social and Governance F&C Fuel and Convenience FY Financial year Gearing Net debt (excluding foreign exchange and fair value hedge adjustments) to total assets (excluding cash) H
Slide 37: Glossary
Glossary VEA reports its performance on a “replacement cost” (RC) basis. RC is a non-IFRS measure under which the cost of goods sold is calculated on the basis of theoretical new RC purchases of inventory instead of historical cost of inventory. This removes the effect of timing differences and the