BWP keeps performing in FY19 Results
The BWP Trust continued to deliver on its financial objectives with a 1.7% increase in full-year distributions to 18.11 cents per unit and a $53.4 million or 1.8 per cent net increase in the assessed valuation of the Trust’s property investment portfolio.
The Trust announced a special distribution of 1.56 cents per unit in conjunction with the property divestments that occurred during the year.
The Trust remains in a strong financial position with a conservatively geared balance sheet, sustainable cash flow and a core portfolio of high returning, well-located property.
The Trust has been an investor in Bunnings Warehouse properties since its establishment in 1998. It is inevitable with the ongoing evolution of the Bunnings business model that some properties no longer meet Bunnings’ operational requirements. Periodically, vacancies in the portfolio do and will continue to occur. There is generally good alternative use for property that Bunnings no longer requires.
The successful re-formatting of two vacated properties for large format retail was completed during the period, and a further three properties are progressing well.
The Trust is a long-term owner of property, and only sells if it is the best opportunity to create or preserve value. During the year the Trust divested and settled four properties vacated by Bunnings for a total amount of approximately $72 million.
While the Trust continued to seek to grow the asset portfolio during the year, investment opportunities with good potential for value creation were difficult to find, and consequently no new assets were acquired.
Final distribution of 9.18 cents, bringing the full-year distribution to 18.11 cents, up 1.7 per cent on the previous year
Special distribution of 1.56 cents declared
Seven market rent reviews (including three Bunnings Warehouse properties) were finalised during the year with rents broadly in line with the market
Like-for-like rental growth of 2.3 per cent for the 12 months to 30 June 2019, taking into account the average inflation on Consumer Price Index (“CPI”) linked leases of 1.9 per cent
Weighted average cost of debt of 4.27 per cent for the year, 3.76 per cent at year end
Weighted average lease expiry of 4.4 years at 30 June 2019, portfolio 97.4 per cent leased
Net revaluation gains on the property investment portfolio of $53.4 million for the year
Net tangible assets of $2.92 per unit at 30 June 2019 (2018: $2.85 per unit), up 2.5 per cent on the previous year
Gearing (debt/total assets) 17.3 per cent at 30 June 2019
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