Morningstar flags rising debt costs as ongoing headwind for Waypoint

Waypoint REIT

28/08/2023 20:22

** Analysts at Morningstar say don't think Waypoint REIT Ltd
 WPR.AX  has the capacity to debt-fund a large development
pipeline as things currently stand 
    ** Co sold a lot of lower-quality properties in recent
years, but further sales will be difficult in the current weak
market, brokerage says 
    ** Morningstar adds debt-funding developments could strain
the balance sheet
    ** "While Waypoint can opt not to fund property upgrades,
they are typically beneficial as they lead to higher rents and
significant lease extensions, which reduce risk" - Morningstar
    ** Co reported HY distributable earnings A$55.6 mln ($35.71
million) versus A$61.4 mln
    ** "We expect some attractive redevelopment opportunities
across Waypoint's portfolio as the key tenant, Viva Energy,
accelerates the growth of convenience retailing to diversify
away from fuel sales" - brokerage 
    ** WPR has fallen 8.4% YTD, as of last close 


($1 = 1.5569 Australian dollars)

 (Reporting by Aishwarya Nair in Bengaluru)
 ((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
 ;))