Overview of Waypoint REIT's FY23 performance and FY24 guidance

Waypoint REIT (ASX: $WPR) has reported a solid performance in FY23, delivering distributable EPS of 16.48 cents and maintaining a property portfolio value of $2.77 billion. With a focus on secure rental income underpinned by long-term leases to top-tier tenants, Waypoint REIT has achieved a 99.9% occupancy and an 8.1-year Weighted Average Lease Expiry (WALE). The company's conservative capital structure, with a target gearing range of 30-40% and an investment grade credit rating (Moody's Baa1), reflects its commitment to financial stability. Looking ahead to FY24, Waypoint REIT has provided guidance with a Distributable EPS range of 16.32 - 16.48 cents, contingent on non-core asset sales and no acquisitions or redevelopment-related expenditure. The company remains focused on further enhancing its debt maturity profile and maintaining 93% average hedging for FY24 based on current drawn debt.

Executive commentary on financial performance and capital management

Aditya Asawa, Chief Financial Officer, highlighted the key components influencing the financial performance of Waypoint REIT in FY23. The reduction in distributable EPS was attributed to the impact of asset disposals in FY22, partially offset by like-for-like rental growth of 3.4%. Operating expenses decreased mainly due to lower insurance costs, while interest expense increased as a result of a higher weighted average cost of debt. The company's prudent debt and hedging profile, with gearing at the lower end of the target range and no debt expiries until April 2025, reflects its commitment to maintaining financial stability and insulation from rising floating rates.

Summary of FY23 performance and outlook for FY24

Waypoint REIT's FY23 performance has demonstrated its ability to deliver solid results in a challenging macroeconomic environment, with a focus on secure rental income and conservative capital management. The company's guidance for FY24, with a Distributable EPS range of 16.32 - 16.48 cents, reflects its commitment to maintaining financial stability and exploring opportunities for further growth. With a portfolio WALE of 8.1 years and a focus on enhancing its debt maturity profile, Waypoint REIT remains well-positioned to navigate market conditions and deliver value to its stakeholders. The company's achievements in FY23 and its outlook for FY24 underscore its commitment to sustainable growth and financial resilience.