Waypoint REIT Earnings: Resilient Outlook Despite Higher Debt Costs

Waypoint REIT’s first-half earnings align with our expectations and are on track to deliver the full-year guidance. For the six months ending June 2024, the REIT’s distributable earnings were AUD 56 million, flat on the previous corresponding period. Rental income increased by 3.1% on the PCP, while operating expenses fell 8% thanks to lower property-related costs, which were offset by higher interest expenses. Distributions of AUD 8.24 cents per security are slightly below earnings per security of AUD 8.28 cents. Management guidance for earnings per security of AUD 16.48 cps is at the upper end of the original guided range and on par with last year, with lower earnings expected in the second half due to rising debt costs. Our unchanged 2024 forecasts are in line with the guidance.