Waypoint Reit Ltd. · ASX:WPR
Waypoint Reit — FY2024 Earnings Presentation
35 slides from Waypoint Reit's earnings presentation, Feb 27, 2025
Slide 1: FY24 Results Presentation
FY24 Results Presentation 27 February 2025 Hadyn Stephens – Managing Director and CEO Aditya Asawa – 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 the inherent regulatory risks in the business of WPR such forward looking “Waypoint REIT”) which is a stapled entity comprising shares in Waypoint This presentatio
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 ASX-LISTED MAJOR TENANT (VIVA ENERGY) • ~7,500 F&C outlets in Australia1, providing an ‘essential • Australia’s largest owned and operated F&C n
Slide 4: Portfolio Snapshot
Portfolio Snapshot High quality portfolio with 91% weighting to metropolitan and highway locations Avg. Book Avg. Avg. Popn Value WACR Value Site (500m/ WALE Category Description # (Dec-24) (Dec-24) (Dec-24) Area 3km) (Dec-24) Key Portfolio Statistics Capital Cities Capitals of the 8 271 $1,950.4m 5
Slide 5: Agenda
Agenda 1. FY24 Highlights 6 2. Financial Results and Capital Management 8 3. Market and Portfolio Update 13 4. Key Priorities and Outlook 19 5. Additional Information 21 6. Glossary 31 5 Image: Caltex Findon (SA)
Slide 6: FY24 Highlights
g Director FY24 Highlights Hadyn Stephens Managing Director and CEO 6 Image: OTR Kingsford (NSW)
Slide 7: FY24 Highlights
FY24 Highlights Guidance delivered; strong balance sheet and high level of hedging leading into FY25 Financial Performance Property Portfolio Capital Management Other Distributable EPS: 16.48 cents WACR: 5.72% Gearing: 32.6% Credit Rating In line with guidance 2bp vs. Jun-24 Lower end of 30-40% ta
Slide 8: Financial Results and Capital Management
Financial Results and Capital Management Aditya Asawa Chief Financial Officer 8 Image: OTR Greystanes (NSW)
Slide 9: Financial Performance
Financial Performance FY24 DEPS in line with FY24 guidance FY24 FY23 Change $m $m $m Commentary 1 Rental income 162.3 157.5 4.8 1 3.1% like-for-like rental growth offset by lower rent due to the sale of Emerald, QLD (settled in October 2024) 2 Operating expenses (9.7) (9.9) 0.2 2 Reduction in operat
Slide 10: Balance Sheet
Balance Sheet Gearing remains at lower end of target range, asset values showing signs of stabilisation Dec-24 Dec-23 Change Change $m $m $m % Commentary Cash and equivalents 14.7 13.3 1.4 10.5 1 Increase primarily due to net revaluation gain ($28.4m), straight lining rent adjustment ($1.6m) and cap
Slide 11: Capital Management
Capital Management Strong liquidity position and headroom to covenants Dec-24 Dec-23 Change Commentary Facility limit ($m) 1,098.6 1,048.6 50.0 1 Gearing at the lower end of the target range (30-40%) Covenant gearing is 34.3%. Significant cap rate headroom4 exists as follows: Drawn debt ($m)1 931.6
Slide 12: Debt and Hedging Profile
Debt and Hedging Profile Enhanced debt maturity profile; high level of hedging to end of FY26 • Refinancing initiatives in FY24 have refreshed and extended WPR’s debt maturity profile • Progressive increase in hedging levels at prevailing market rates – Extension of $100m bilateral facility for five
Slide 13: Market and Portfolio Update
g Director Market and Portfolio Update Hadyn Hadyn Stephens Stephens Managing Director and Chief Executive Managing Director and CEO Officer 13 Image: OTR Strathfield (NSW)
Slide 14: Transaction Market Update
Transaction Market Update Recovering transaction volumes, allowing for improved asset price discovery • Transaction volumes recovered in 2024 from historical lows of 2023 National Transaction Volume – 83 transactions ($486m) in 2024 vs. 52 transactions ($325m) in 2023 $700 7.00% $600 6.00% $500 5.00
Slide 15: Valuations
Valuations1 Capitalisation rates appear to be stabilising; slight decline in portfolio value due to lower assessed market rents Gross Value ($m)1 WACR (%) # of Properties @ 31-Dec-24 Jun-24 Dec-24 Variance Jun-24 Dec-24 Change Capital Cities 53 394.1 389.8 (4.3) 5.37 5.36 (0.01) Other Metro 10 73.0
Slide 16: Non-Core Asset Sales
Non-Core Asset Sales Two assets sold for $6.55m in FY24; three assets in due diligence for ~$15m • Two assets sold in FY24 for combined sale price of $6.55m (3.8% premium to prevailing book value) Lease Book Book Sale Variance Asset Sold State Classification Expiry Settlement Value Value Date Price
Slide 17: Leasing Update
Leasing Update Strong progress on lease renewals, average positive reversion of ~1% on all F&C leases since IPO • Terms agreed and/or documented on seven of eight leases expiring in FY24/25, including Reddy Express Rouse Hill (56% of expiring FY25 income) • Non-F&C tenants can be difficult to replac
Slide 18: OTR Conversions: VEA Update
OTR Conversions: VEA Update1 Conversion program expected to ramp up in 2H25; ~50% of Express stores to be converted by 2028 VEA Commentary: ~50% of Express stores converted to OTR by 2028 • Store conversion program has been slower than expected due to lengthy town planning processes • VEA expects to
Slide 19: Key Priorities and Outlook
g Director Key Priorities and Outlook Hadyn Stephens Managing Director and CEO 19 Image: Caltex West Terrace (SA)
Slide 20: Key Priorities and Outlook
Key Priorities and Outlook FY25 DEPS guidance of 16.48 cents; well-positioned to consider value-accretive opportunities • VEA has indicated 40-60 Express sites to be converted to OTR in FY25; costs in line with completed conversions (~$1.6m per site) OTR Conversions • Implied indicative funding requ
Slide 21: Additional Information
Additional Information 21 Image: Shell Reddy Express Brandon Park (VIC)
Slide 22: Reconciliation of Distributable Earnings to Statutory Profit
Reconciliation of Distributable Earnings to Statutory Profit Increase in statutory profit driven by revaluation gain in FY24 FY24 FY23 Change $m $m $m Commentary Distributable earnings 110.7 110.7 - 1 Net revaluation gain in FY24 reflects the impact of rental growth partially offset by mild cap rate
Slide 23: Distributable EPS Growth Components
Distributable EPS Growth Components LFL rental growth and expense savings offset higher cost of debt Loss of rent from 3.1% like-for-like sale of Emerald rental growth (Sep 24) 0.72 0.03 (0.01) 16.48 16.48 (0.71) (0.03) Primarily due to lower repair & maintenance, consulting and 50 bps increase in T
Slide 24: Portfolio by State / Territory
Portfolio by State / Territory NSW has experienced the greatest cap rate expansion since June 2022 (high metro weighting, tightest WACR) NSW VIC QLD WA SA ACT TAS NT Portfolio 5% 2% 2% 1% 30% 10% % of WPR portfolio value: 20% 30% Cap rate change: 2H22 +41 bp +23 bp +20 bp +17 bp (2 bp) +43 bp +24 bp
Slide 25: Lease Expiry Profile (31 December 2024)
Lease Expiry Profile (31 December 2024) Portfolio WALE of 7.1 years with a staggered expiry profile WALE 7.1 years 25.1% 19.2% 13.8% 7.8% 8.6% 6.6% 6.0% 7.0% 1 0.7% 1.0% 0.1% 0.0% 3.8% 0.2% Vacant FY25 FY26 FY27 FY28 FY29 FY30 2 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 26 28 32 28 28 39 59 66 69
Slide 26: Viva Energy Australia – FY24 Result
Viva Energy Australia – FY24 Result1 Group EBITDA up 5%; C&M division negatively impacted by lower demand and higher costs • Group Highlights: FY24 FY23 Change – Group EBITDA up 5%, driven by C&I and E&I divisions C&M fuel volumes2 ML 5,062 5,038 +0.5% – Group NPAT down 20.1%, primarily due to highe
Slide 27: Retail Fuel Volumes
Retail Fuel Volumes Softer fuel volumes in 2024 but long-term trend remains positive • Cost of living pressures curtailed retail fuel volumes in 2024, down ~1% on 2023 • Total fuel sales to retailers have increased by ~11% over the last 10 years (~10% decline in petrol volumes, ~52% increase in dies
Slide 28: Retail Fuel Prices and Margins
Retail Fuel Prices and Margins Average retail fuel prices fell slightly in 2024, indicative retail fuel margins remained strong • Average retail fuel price in CY24 was ~3% below 2023, with the average diesel price falling ~5% and average petrol price largely flat • Average retail margins improved by
Slide 29: Australian New Vehicle Market
Australian New Vehicle Market Marginal increase in BEV market share, hybrid vehicles showing strong growth New vehicles by power source (2023)2 BEV/PHEV Sales as % of New Light Vehicle Sales 1 PHEV 1.0% 12% BEV 7.5% Hybrid 10% 9.7% 8.4% 8.5% 8% Petrol 50.5% Diesel 32.6% 6% 3.8% 4% New vehicles by po
Slide 30: ESG Update
ESG Update FY24 targets achieved FY24 HIGHLIGHTS MEASURED EMISSIONS (t-CO2-e)1 • No health and safety incidents 80 69 • Zero employee turnover • 100% of mandatory training completed by all employees 60 75% reduction • Carbon Footprint (measured emissions1): - Scope 1 & 2 – reduced to zero through ad
Slide 31: Glossary
Glossary 31 Image: OTR Strathfield (NSW)
Slide 32: Glossary
Glossary AACS Australian Association of Convenience Stores AFSL Australian Financial Services License AIP Australian Institute of Petroleum AMTN Australian Medium-Term Notes ASX Australian Securities Exchange BBSW Bank Bill Swap Rate BEV Battery electric vehicle. Powered by battery, with no secondar
Slide 33: Glossary
Glossary FY Financial year Gearing Net debt (excluding foreign exchange and fair value hedge adjustments) to total assets (excluding cash) Interest cover ratio (Covenant calculation: Distributable Earnings before interest expense plus straight-line rental income divided by Net Interest Expense (excl
Slide 34: Glossary
Glossary t-CO2-e Tonnes of carbon dioxide equivalent Terminal Gate Price Terminal Gate Price, as per the Australian Institute of Petroleum. Terminal Gate Price represents the national average wholesale price of petrol USPP United States Private Placement VEA or Viva Energy Australia Viva Energy Aust
Slide 35: Waye int
aa a Waye int REIT