Waypoint REIT share price gets a boost from financial guidance upgrade

Investors took note of Waypoint's financial guidance upgrade today, driving the Waypoint REIT share price higher.

| More on:
Green dollar sign rocket on the back of a man.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Waypoint REIT Ltd (ASX: WPR) share price is up by 3.98% today following a market update. The company has upgraded its 2020 financial year guidance for distributable earnings growth over the 2019 financial year from 3–3.75% to 4–4.25%.

Waypoint reported its US Private Placement (USPP) has been priced with US$178 million (AU$245 million) of notes to be issued, split across 7, 10- and 12-year tranches with a weighted average maturity of 9.2 years.

Waypoint will use the USPP proceeds to pay down a combination of term and revolving credit facilities. The transaction is expected to be funded on 29 October 2020

Hadyn Stephens, CEO of VER Manager (which manages the Waypoint REIT), said:

With the USPP transaction now priced, we are very pleased to be able to upgrade our FY20 guidance. We look forward to sharing further details on our half year performance and outlook at our half year results presentation on 20 August 2020.

Kerri Leech, CFO of VER Manager, added:

Following Moody's assignment of a Baa1 credit rating in December 2019, we are pleased to have executed on our strategy of extending our debt maturity to more closely align to the weighted average lease expiry of our portfolio and diversifying our debt platform, particularly in the current economic environment.

What does Waypoint REIT do?

Waypoint REIT (formerly Viva Energy REIT Ltd) is Australia's largest listed real estate investment trust (REIT) with a market cap of $2 billion. It owns a portfolio of service stations around Australia, with more than 400 Shell-branded service station properties around Australia. Waypoint REIT's properties are typically operated by Coles Group Ltd (ASX: COL) as Coles Express service stations.

Buying shares in a company like Waypoint REIT provides investors with exposure to commercial property without the complications that come with direct property ownership.

Waypoint REIT shares first listed in 2016. Since then it has grown to sit comfortably within the S&P/ASX 200 Index (ASX: XJO).

How has the Waypoint REIT share price performed?

With a portfolio of service stations, the Waypoint REIT share price took a hard hit from the lockdowns and state border closings put in place to eliminate the spread of COVID-19.

From 6 March to 19 June, Waypoint shares fell 28%. The share price has since gained 29%. Year-to-date, the Waypoint REIT share price is almost back to where it started, down just 1.8% despite the huge hit to travel and petrol use.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another shaky day for ASX shares this Tuesday.

Read more »

forklift holding boxes next to upward trending arrow signifying share price lift
Opinions

If you don't own this ASX stalwart stock, you're missing some serious stability

This stock is riding strong tailwinds, I really like its outlook.

Read more »

ETF spelt out on cube blocks with rising arrows.
ETFs

Are these record-breaking ASX ETFs now too expensive to buy?

Should you ever buy an ETF at an all-time high?

Read more »

Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price
Consumer Staples & Discretionary Shares

Buy Domino's shares for a 50% return and attractive dividend yield

Morgan Stanley believes investors should be grabbing a slice of this stock.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today

These ASX shares are having a difficult session. But why?

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why DroneShield, Healius, Newmont, and Paragon Care shares are pushing higher

These ASX shares are having a strong session on Tuesday. But why?

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Why are ASX lithium shares like Pilbara Minerals crashing on Tuesday?

Lithium stocks are getting another whack today.

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Mergers & Acquisitions

Guess which ASX small cap stock is rocketing 27% on 'transformative' merger

Investors are liking the look of this merger plan.

Read more »