FY22 results for Waypoint REIT came in at the top-end of the guidance range. Rental income rose 1.9% on the previous corresponding period, driven by fixed 3% rental increases offset by lower income as 37 assets were sold during 2021, explains Morgans.
The broker expects further capital management in 2022 following $173.4m of capital being returned during 2021 via a 17cpu distribution and a buyback.
FY22 EPS guidance is 16.44cpu and assumes $150m in asset sales and $100m of associated capital management. The Add rating is retained and the target rises to $3.07 from $3.
Sector: Real Estate.
Target price is $3.07.Current Price is $2.71. Difference: $0.36 – (brackets indicate current price is over target). If WPR meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
