Within a recent market update, Waypoint REIT Limited (ASX: WPR), formerly Viva Energy REIT Limited – which owns a portfolio of 402 service station and convenience retail properties Australia-wide – disclosed that its portfolio value had fallen 5% or $151m for the six months to 30 December 2023.

The REIT’s weighted average capitalisation rate (WACR) rose to 5.68%, from 5.4%.

While 25 rents within the REIT’s $2.8bn portfolio of properties are currently under review, the remaining assets will undergo rent reviews next year with the results to be reflected in the June 2024 valuations.

The pro forma impact of the valuations on Waypoint’s 30 June 2023 net tangible assets (NTA) per security is a net reduction of around 22 cents (or approximately 8%).

Further details on the valuation of the investment portfolio and NTA per security as at 31 December 2023 will be released to the market with the REIT’s full year 2023 financial results on Monday, 26 February 2024.

The company has been trading at a 16% discount to its NTA of $2.97.

Green light

The recent valuation update follows revaluations mid-December that the Australian Competition Commission (ACCC) will not oppose the acquisition of On The Run Group  (OTR) – a fuel and convenience retailer operating predominantly in South Australia – by Waypoint’s cornerstone tenant, Viva Energy, with a couple of caveats.

Viva Energy plans to buy 184 OTR retail fuel sites, including 153 in South Australia.

Within its ruling, the ACCC found that the acquisition of some of these sites would substantially lessen local competition. As a result, Viva offered to sell 25 of its existing sites in South Australia, which the ACCC has agreed to.

While the sites are being sold to Chevron, Waypoint retains ownership of the land.

Image: Viva Energy plans to buy 184 OTR retail fuel sites – including 153 in South Australia – from Waypoint.