Interesting to see VEA (Shell) announcing its future hydrogen...

Interesting to see VEA (Shell) announcing its future hydrogen strategy. Should Hydrogen become a viable fuel alternative it would certainly improve WPR's long term asset valuation.

IMV Waypoint's high 6% yield, its very conservatively stated NTA of $2.95, it's long term triple net leases (NNN) plus it's internal management structure make it a real takeover play at current prices. It would be an excellent fit with HMC's Daily Needs REIT (HDN) that needs to rebalance after its recent merger with AVN. It would also potentially work with Charter Hall's Long Wale REIT which already holds around 300 petrol stations (at much lower capitalisation rates), Charter Hall (CHC) are already a small holder of WPR.

Over the past couple of months there has have been large volumes traded (in addition to WPR's 16 million unit market buyback). I think the market has started to recognise that good quality assets with long term leases are now an excellent alternative to holding inflation impacted bonds.

1 March 2022

Hydrogen transport future at Geelong Energy Hub

Viva Energy Group Limited (the Company) today announced Australia’s most ambitious hydrogen
mobility project, with the development of a New Energies Service Station in Geelong (subject to
regulatory approvals). Alongside electric vehicle recharging, the service station will offer public refuelling
of hydrogen powered heavy vehicles (buses and trucks) operating within the Geelong region. This is a
market-leading development in Australia, and comparable with other large commercial refuelling
infrastructure installations around the world.

The project forms part of the Company’s vision for a Geelong Energy Hub, which will see Geelong become a leader in commercial deployment of hydrogen powered electric vehicles. With this project, Viva Energy has brought together commercial fleet operators, government and vehicle
manufacturers to develop a commercially viable, hydrogen-focussed service station that will support the
transition to a zero-emissions energy solution in the large and growing commercial transport sector.

This initial service station is the first step in the Company’s longer term plans to be a leader in refuelling a
growing hydrogen powered fleet, and establish a nationwide refuelling network at its existing service
stations along major commercial road transport routes between Melbourne and Sydney, and onto
Brisbane. The project is structured to achieve a commercial return in-line with our energy transition
growth strategy, with the broader opportunity providing large long-term upside potential. It is expected to
commence operations in late 2023.