In its 1H26 results presentation delivered on 27 August 2026, Waypoint REIT (ASX: WPR) reported distributable earnings per security (DEPS) of 8.59 cps, up 3.4% on 1H25, and reaffirmed its full-year FY26 DEPS guidance of 17.14 cents, representing 3% growth on FY25. Managing Director and CEO Hadyn Stephens and Chief Financial Officer Aditya Asawa presented the WPR 1H26 results to investors.
Waypoint REIT operates as a fuel and convenience (F&C) property landlord, holding a 394-asset portfolio valued at $2,862.7m with 99.9% occupancy by income and 94.1% of total rental income sourced from Viva Energy Australia. Net tangible assets (NTA) stood at $2.92 per security, with gearing of 32.4%.
1H26 financial performance and distribution growth
Growth in distributable earnings was driven by like-for-like rent growth of approximately 3%, together with the benefit of the FY25 security buyback, under which 19.1m securities were repurchased during 2025. Distributable earnings rose to $56.1m from $55.6m, while the reduced security count lifted per-security earnings.
NTA increased to $2.92, up $0.02 (+0.7%) since December 2025. The company’s management expense ratio (MER) of 31bp (annualised) remains one of the lowest in the S&P/ASX 200 A-REIT index, according to the presentation.
On distributions, the company reported a DPS of 8.50 cps, up 3.2% on 1H25. Quarterly distributions for 2H26 are expected to increase to 4.32 cps (from 4.25 cps), in line with guidance and reflecting a 100% payout ratio for FY26.
Statutory net profit fell to $65.8m from $137.1m. This reduction reflects a materially lower revaluation gain in the period (a $10.7m gain in 1H26 versus a $96.3m gain in 1H25), rather than any deterioration in underlying operations.
| Metric | 1H26 | 1H25 | Change | Why it matters |
|---|---|---|---|---|
| Rental income | $83.5m | $82.4m | +$1.1m | Steady rent roll growth |
| Distributable Earnings | $56.1m | $55.6m | +$0.5m | Underpins distributions |
| DEPS | 8.59c | 8.31c | +3.4% | Per-security growth |
| DPS | 8.50c | 8.24c | +3.2% | Income to holders |
| Statutory net profit | $65.8m | $137.1m | -$71.3m | Lower reval gain, not operations |
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What a triple-net F&C REIT means for investors
Waypoint REIT owns fuel and convenience sites leased to tenants on triple net (NNN) leases, which account for 89.9% of income. Under an NNN lease, the tenant rather than the landlord covers outgoings such as rates, insurance, and repairs and maintenance, reducing the property owner’s cost exposure.
Two portfolio measures help explain the income profile. A weighted average lease expiry (WALE) of 5.9 years and 99.9% occupancy point to a long, stable rent roll, while CPI-linked rent reviews (weighted average rent review, or WARR, of 3.0%) provide a degree of inflation protection.
Tenant concentration is a defining feature. With 94.1% of income from Viva Energy, investors benefit from a strong, listed counterparty, though the reliance on a single major tenant is a concentration factor to understand.
Portfolio strength and leasing outcomes
The portfolio recorded a $10.7m valuation uplift, with rent reviews offsetting 10bp of cap rate expansion. The weighted average capitalisation rate (WACR) moved to 5.71%, up 10bp since December 2025. CBRE replaced Savills as WPR’s independent valuer for the June 2026 process under a three-year appointment.
Portfolio quality remains a focus, with 92% weighted to metropolitan and highway locations and more than 80% located on the eastern seaboard.
Leasing outcomes were a clear positive. All FY26 expiries have now been resolved, with 26 of 28 leases renewed, delivering a 97.2% retention rate by income and a +10.3% rental reversion on renewals.
Two sites where Viva Energy has exited or will exit, Brendale (QLD) and Slacks Creek (QLD), are being assessed for various options including conversion, subdivision or sale. Separately, the Nowra (NSW) asset sale settled in May 2026 for $6.1m.
Key portfolio statistics presented were:
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394 assets, $2,862.7m book value
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5.9 yrs WALE (by income)
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99.9% occupancy (by income)
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3.0% WARR (CPI-linked reviews)
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89.9% NNN leases
Capital management and debt position
Management outlined a prudent balance sheet, with gearing of 32.4% sitting in the lower half of the 30–40% target range. The company completed $250m of refinancing during the period, issuing a new 6-year, $250m Australian Medium-Term Note (AMTN) in June 2026 and repaying and cancelling $250m of syndicated bank facilities, achieving a small margin saving of approximately 5bp. Weighted average debt maturity (WADM) remained stable at 3.8 years.
Key debt highlights included:
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Gearing: 32.4% (lower half of 30–40% target range)
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WADM: 3.8 years
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2H26 hedging: 95%, reducing exposure to rate volatility
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FY26 cost of debt guidance: maintained at approximately 5%
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Credit rating: Baa1 (stable) from Moody’s, with liquidity of $95.1m
Sector backdrop: fuel, convenience and the EV transition
Management provided context on the operating environment. Viva Energy, WPR’s key tenant, reported a strong 1H26 result, with Group EBITDA up 154%, Convenience & Mobility EBITDA up 86%, and net debt reduced 17.1% to $1.72bn, reinforcing the strength of the tenant covenant.
The convenience channel also showed resilience. National ex-tobacco convenience store sales rose +2.2% year to date, offsetting an ongoing decline in tobacco.
On the electric vehicle (EV) transition, management framed the shift as a long-dated structural theme rather than a near-term threat. EV share of new light vehicle sales reached 25.8% in 1H26, but WPR estimates EV share of the total fleet at only approximately 2.2%. The company’s modelling indicates the fleet transition is expected to take many years, with EV fleet share reaching between 14% and 35% by 2035 depending on the scenario applied.
Management framing
Management characterised the 1H26 result as resilient performance in a challenging operating environment, with strong tenant fundamentals and a long-dated view of the EV transition. (Paraphrased from management commentary.)
FY26 outlook and what comes next
FY26 DEPS guidance was reaffirmed at 17.14 cents, representing 3% growth on FY25, assuming no material change in the operating environment. Quarterly distributions for 2H26 are expected to increase to 4.32 cps, reflecting a 100% payout ratio for FY26.
The 17.14 cent DEPS figure was first set at the FY26 guidance issued in February 2026, when WPR also flagged a 14.5% discount to NTA and a 6.9% yield as context for the income-focused investment case.
Management outlined the following next steps:
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Targeting $10–20m of non-core asset sales in 2H26, subject to market conditions
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33 F&C leases expire in FY27 (approximately 7% of income), with a landlord-initiated process on the 28 IPO leases (August 2027 expiry) to commence shortly
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Continued exploration of debt optimisation and early refinancing of existing facilities
Based on the closing security price of $2.41 on 26 August 2026, management disclosed a distribution yield of 7.1% and a 17.5% discount to June 2026 NTA. These figures were presented as part of the results update and do not constitute investment advice.
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