Waypoint REIT finds Valuation Gains

Waypoint REIT (previously known as the Viva Energy REIT) has booked a valuation gain of $30m for the 6 months to June 30.

Independent valuations were carried out on 157 properties as at 30 June 2020, representing approximately one-third of the 474 properties in the WPR portfolio, representing a cross-section of the WPR portfolio, with a metro/regional split of 73%/27% respectively, consistent with the overall composition of the WPR portfolio.

A gross valuation uplift of $30.1m, largely arising from annual rental increases, was recorded on the 157 properties that were subject to independent valuation as at 30 June 2020.

The weighted average capitalisation rate (WACR) of the 157 properties was 5.69%, reflecting a 1 basis point tightening on the 5.70% WACR for the properties as at 31 December 2019. The WACR on the 115 metro properties firmed by 3 basis points from 5.42% at 31 December 2019 to 5.39%, with the WACR on the 42 regional properties softening by 4 basis points from 6.47% to 6.51%.

The Waypoint REIT also announced that it has entered a new $50 million bilateral revolving credit facility maturing in June 2023, on pricing generally consistent with existing facilities. The new facility will replace the existing undrawn $50 million bilateral revolving credit facility maturing in April 2021, which will be cancelled as soon as practicable.

Post these transactions, the pro-forma weighted average debt maturity increases from 2.9 years to 3.0 years as at 30 June 2020 and the nearest debt maturity is in June 2022.