Waypoint Earnings: Asset Sales and Higher Interest Rates Weigh on Result

Waypoint REIT’s 2023 distributable earnings fell 5% to AUD 111 million as asset sales and a higher cost of debt offset solid like-for-like rental growth of 3.4%. With the benefit of the on-market buyback, distributable earnings and distributions were flat on a per-security basis at AUD 16.48 cents, in line with our expectations. Guidance is for distributable earnings per security to be flat again in 2024 as the cost of debt continues to rise or go down 1% if the trust manages to offload AUD 80 million of noncore properties flagged for sale.