Waypoint REIT (ASX: WPR)

WPR is Australia’s largest listed REIT focused exclusively on fuel and convenience retail properties, with a portfolio of around 400 service stations across Australia, predominantly leased to Viva Energy. WPR is actually our office neighbour as well, just across the hall!

The model is highly defensive: occupancy was 99.9% at June 2026, WALE was 5.9 years, and all 28 leases expiring in 2026 have been resolved, with 26 retained at an impressive 10.3% positive rent reversion. Many leases also contain multiple 10-year renewal options, while the portfolio’s metropolitan exposure provides underlying land value and potential alternative uses over time.

Financially, WPR remains conservatively positioned, with gearing around the low end of its 30–40% target range and one of the lowest management expense ratios among ASX-listed REITs. Around $2.40, the stock trades well below its ~$2.90 NTA and offers a projected unfranked yield of more than 7%. However, growth is modest and tenant concentration is significant, with Viva historically accounting for more than 90% of rental income.

• Longer term, the transition away from petrol vehicles remains the key structural risk, although the quality and location of WPR’s underlying land provides some protection against outright asset obsolescence.

For MM, the more immediate issue is interest rates. Sticky inflation and increased expectations of another RBA hike are a headwind for bond-sensitive REITs, both through higher property discount rates and greater competition from cash and fixed income.