Waypoint REIT has now completed its capital management initiatives, Morgans notes, which included a $150m buyback, 17cps capital return and a 0.9382 for one share consolidation which neutralises the impact on net tangible asset value.
A new buyback of around $50m will begin on December 1.
Nearly all of Waypoint’s fuel income is contacted to 2026, the broker points out, nearly all leases have fixed rent increases and nearly all of that income comes from Viva Energy ((VEA)), which spun off the REIT, which sells under the Shell brand and it operated by Coles ((COL)).
Waypoint remains suited to income investors with distributions paid quarterly, suggests Morgans. Add and $3.00 target retained.
Sector: Real Estate.
Target price is $3.00.Current Price is $2.67. Difference: $0.33 – (brackets indicate current price is over target). If WPR meets the Morgans target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).