Waypoint REIT is a fuel and convenience retail REIT. Image – Canva.
  • Sold to trusts managed by Fawkner Property
  • 31 properties sold for $113.9 million
  • Represented a 10.1% premium

Fuel and convenience retail REIT Waypoint (ASX: WPR) has announced the sale of 31 non-core fuel and convenience properties to trusts managed by Fawkner Property.

The $113.9 million sale price is a 10.1% premium to WPR’s carrying value as at 31 December 2020 of $103.4 million.

Number of Assets Dec 20 WALE Dec 20 Book Value Dec 20 WACR Sale Price Implied Yield Premium to book
Metro 10 7.6 yrs $33.3M 6.48% $37.3M 5.97% 11.90%
Regional 21 8.5 yrs $70.1M 7.06% $76.6M 6.65% 9.30%
Total 31 8.3 yrs $103.4M 6.87% $113.9M 6.42% 10.10%

Source: WPR.

Waypoint said the sale to Fawkner is subject to rights of first refusal in favour of Viva Energy Australia and Coles Group, which provide a period of 30 days in which Viva Energy or Coles can elect to acquire any of the properties on the same terms as agreed with Fawkner.

The company will have sold 34 non-core assets year-to-date following the Fawkner transaction, for a combined price of $121.9 million. Twelve more assets have been identified as non-core and have a combined book value of $35.3 million.

Following the 30 June 2021 valuations, the company has reported a gross increase of $176.1 million for the whole portfolio, including the Fawkner properties to be sold shortly. The December 2020 value was $2.763 billion, the June 2021 value came in at $2.939 billion.

The pro forma impact of the Fawkner transaction, other non-core disposals (both completed and planned), the June valuation process and proposed capital management initiatives is 28.7% gearing, $2.75 NTA, and $139.6 million in liquidity.

Jun 21 Estimate Jun 21 Pro Forma
Gearing 27.3% 28.7%
NTA per security $2.75 $2.75
Liquidity $140.2M $139.6M

“The disposals announced today demonstrate WPR’s commitment to active portfolio management, with continued strong demand at present for fuel and convenience assets providing a compelling opportunity for WPR to realise attractive prices for non-core assets and improve overall portfolio quality,” WPR CEO Hadyn Stephens said.

Mr Stephens added that “WPR will continue to evaluate opportunities to sell assets where we believe that it is in the best interests of security holders to do so.”

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