Waypoint: Selloff Reveals Value

Like many of its peers, shares in no-moat Waypoint REIT have sold off and now look attractive. Shares trade at a 20% discount to our unchanged AUD 2.80 per share fair value estimate, offering a big forecast distribution yield of 7.3%. Admittedly, we expect distributions to remain flat for the medium term as rising interest rates offset contracted rental uplifts, but growth should return in a few years.