Waypoint REIT posts distributable earnings growth and confirms FY26 outlook

The Waypoint REIT Ltd (ASX: WPR) share price is on the move today after posting distributable EPS of 8.59 cents, up 3.4% on the prior period, and announcing a quarterly distribution per security of 8.50 cents, a 3.2% increase.

What did Waypoint REIT report?

• Distributable earnings per security (DEPS): 8.59 cents, up 3.4% vs 1H25
• Distribution per security: 8.50 cents, up 3.2% vs 1H25
• Statutory net profit: $65.8 million ($71.3 million lower than 1H25, due to lower property revaluations)
• Portfolio valuation uplift: $10.7 million, with book value at $2.86 billion
• NTA per security: $2.92, up 0.7% since December 2025
• Gearing: 32.4%, at the lower end of target range

What else do investors need to know?

Waypoint REIT reported that all FY26 lease expiries have now been resolved, with 26 of 28 leases renewed or extended, achieving a strong 97% retention rate and an average rental reversion of 10.3%. The business completed a major refinancing during the half, issuing a new $250 million, 6-year medium term note and repaying the same amount of bank debt, further strengthening its debt profile.

The company also highlighted asset sales, including the settlement of the Nowra property for $6.1 million, and continued progress on its OTR conversion program, with 19 conversions completed—all funded by Viva Energy Australia, their major tenant. Management reaffirmed prioritisation of prudent capital management, strong hedging, and maintaining high occupancy (currently 99.9%).

What’s next for Waypoint REIT?

Looking ahead, Waypoint REIT has reaffirmed full-year guidance for distributable earnings per security at 17.14 cents, a 3% increase over FY25. The company expects quarterly distributions to increase to 4.32 cents per security in the second half of FY26, reflecting a 100% payout ratio.

Management will continue to focus on optimising debt facilities, progressing non-core asset sales (targeting $10–20 million in 2H26), and engaging on upcoming lease expiries in 2027. The outlook remains cautious on transaction activity, with interest rates still the key driver of market sentiment.

Waypoint REIT share price snapshot

Waypoint REIT shares have underperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a decline of 5.5%.

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The post Waypoint REIT posts distributable earnings growth and confirms FY26 outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.