Total
0
Shares
BWP Trust (ASX:BWP) maintains dividend as profits rise 25pc
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Bunnings landlord BWP Trust (BWP) has kept its final dividend at the same level as last year while enjoying a 25 per cent increase in profit
  • The assessed valuation of the trust's property portfolio grew by $149.2 million for the year to 30 June 2021, a six per cent rise over the previous year
  • Despite revenue dropping for the year, the total profit increased by 24.9 per cent to $263.1 million
  • On August 20, the trust will make a final payment of 9.27 cents per share to stockholders, bringing the year's total distributions to 18.36 cents per unit
  • BWP shares are down 1.22 per cent, trading at $4.05 at 12:35 pm AEST

Bunnings landlord BWP (BWP) has maintained its final dividend at the same level as last year while enjoying a 25 per cent rise in profit and an increase in the value of its property.

The assessed valuation of the trust's property portfolio grew by $149.2 million for the year ending 30 June 2021, a six per cent rise over the previous year, which BWP said indicated the continued appeal of Bunnings Warehouse assets to investors.

Its portfolio is 97.8 per cent leased, with like-for-like rental growth of 1.6 per cent for the 12 months to June 30.

BWP reported 16 market rent reviews (including 13 Bunnings Warehouse properties) finalised during the year, with rents broadly in line with the market and the weighted average lease expiry across the portfolio of 4.2 years.

On August 20, the $2.6 billion real estate trust will make a final payment of 9.27 cents per share to stockholders, bringing the year's total distributions to 18.36 cents.

Despite revenue dropping for the year, the total profit increased by 24.9 per cent to $263.1 million.

Notwithstanding COVID-19 pandemic induced state-wide lockdowns or activity limitations for various periods of time, Bunnings was able to operate unhindered for the bulk of the year from facilities leased from BWP.

The trust also holds leases with a limited number of tenants, such as gym operators, who were closed by state governments for periods of time over the year due to COVID-19.

For the fiscal year ending June 30, 2021, a total of $473,571 in rent abatement was given. After accounting for COVID-19 effects, the trust received 99.6 per cent of the rent payable for the year.

"The trust made good progress in improving Bunnings Warehouse properties and repositioning ex-Bunnings properties in the portfolio during the year," the company said in an announcement to investors.

"Options to extend Bunnings leases were exercised for the Belmont, Caroline Springs, Cockburn, Fairfield Waters, Mount Gravatt, Pakenham, Smithfield, Wagga Wagga, Broadmeadows and Dubbo properties."

BWP shares were down 1.22 per cent, trading at $4.05 at 12:35 pm AEST.

BWP by the numbers
More From The Market Herald
- Fund Manager, Alex Abell - The Market Herald

" APN Industria REIT (ASX:ADI) to raise equity for industrial portfolio acquisition

APN Industria REIT (ADI) set to acquire interests in a portfolio of 51 industrial properties and development opportunities for approximately $368 million, partly
The Market Herald Video

" Centuria Industrial REIT (ASX:CIP) to raise equity for eight urban infill assets

Centuria Industrial REIT (CIP) has agreed to buy four urban infill industrial freehold assets and has completed the purchase of four other freehold
Dexus (ASX:DXS) expands industrial platform with $1.5b in acquisitions

" Dexus (ASX:DXS) expands industrial platform with $1.5b in acquisitions

Dexus (DXS) has acquired a portfolio of industrial properties alongside APN Industria REIT (ADI) for a total purchase price of $1.5 billion, including...
Lendlease (ASX:LLC) and Morgan Stanley form $430m joint venture

" Lendlease (ASX:LLC) and Morgan Stanley form $430m joint venture

Lendlease has bought a portfolio of eight industrial assets from a private logistics group in a 50/50 joint venture with an investment vehicle