This article first appeared on GuruFocus .
Release Date: February 25, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Distributable EPS increased by 1% to $0.64, in line with upgraded guidance.
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Net Tangible Assets (NTA) rose by 5% to $2.90 per security.
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Successful completion of a $50 million buyback at an average price 10% below NTA.
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Rental income grew by 2%, supported by like-for-like rental growth of 3%.
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High tenant retention rate of 97% with a rental uplift of 11.7% on renewed leases.
Negative Points
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Distributable earnings were modestly lower due to non-core asset sales and higher debt costs.
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Operating expenses increased, driven by higher property-related costs.
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Interest expenses rose in line with the weighted average cost of debt.
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The portfolio is approximately 6% over-rented, with concentration in later years.
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Caution in the market due to potential rate increases, impacting secondary asset demand.
Q & A Highlights
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Q: Of the 40 to 60 OTR conversions planned for FY26, what proportion might require funding from Waypoint? A: Hayden Stevens, CEO: We don't have any indication that any of these conversions will require funding from Waypoint. All conversions so far have been basic, and we haven't received any funding requests from Viva for larger projects.
Q: Can you provide more details on the potential for positive outcomes from FY27 lease expiries? A: Hayden Stevens, CEO: It's early days for FY27 expiries, and while we believe the portfolio is under-rented, we need to conduct further assessments. We won't speculate on outcomes as negotiations are ongoing.
Q: Do you see room for further margin tightening in your debt profile, especially after recent refinancing? A: Adeci, CFO: We achieved a 15 basis point margin reduction mainly due to early repayment of USPP notes. While bank debt margins are compressing slightly, significant further tightening isn't expected. Our hedging strategy provides stability against rate fluctuations.
Q: With gearing at the low end of the target range, is another buyback being considered? A: Hayden Stevens, CEO: While buybacks are always considered, we are not planning one currently. Our liquidity position is comfortable, and further buybacks would require additional funding sources from non-core asset sales.
Q: How are you approaching capital deployment given potential valuation growth and non-core asset sales? A: Adeci, CFO: We prioritize investing in our existing portfolio and consider buybacks attractive at current pricing. However, buybacks are linked to non-core asset sales, and we expect cautious buyer sentiment in the market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
