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Australia's Waypoint REIT portfolio valuations decline about 5%

Credit: REUTERS/Daniel Munoz

Adds details on portfolio valuation and background in paragraphs 3-5

Dec 22 (Reuters) - Australia's Waypoint REIT WPR.AX, which owns fuel and convenience retail properties, said on Friday the book value of its portfolio declined by about 5% for the six months ending Dec. 31.

The company said independent valuations of 85 properties and directors' valuations of 317 properties resulted in a total estimated decline of A$151 million ($102.66 million).

Waypoint's weighted average capitalization rate, a metric to measure return on investment of real estate assets, across its portfolio rose to 5.68% from 5.40%.

The Australian real estate market, particularly office and retail, has been battling a downturn as working from home and e-commerce constraints pressure valuations, with higher interest rates lowering building values and raising debt costs.

In November, Viva Energy VEA.AX proposed to divest operations of 25 of its 32 sites in South Australia, 14 of which were owned by Waypoint.

Waypoint's portfolio shrank by about A$27.1 million ($18.03 million), a decline of about 1%, based on independent valuations of 78 properties and directors' valuations of 324 properties as at June 30.

($1 = 1.4708 Australian dollars)

(Reporting by Neha Soni in Bengaluru; Editing by Krishna Chandra Eluri and Shounak Dasgupta)

((Neha.Soni@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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