REPORTING SEASON: BWP Trust (BWP)
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Figure 1: BWP Trust 12 month chart
BWP Trust (BWP) posts a solid result and trades near record high
– BWP Trust (BWP) posted a $101.6m Underlying Profit for the 12 months ended 30 June 2015 and was in-line with the market’s expectations.
– BWP is a listed managed investment scheme which invests in commercial real estate throughout Australia. The majority of its properties (80 of 82) are Bunnings Warehouses tenanted by the Wesfarmers owned hardware chain. Wesfarmers is also BWP’s largest shareholder.
– The result was boosted most by rental growth from its existing property portfolio and additional rental income from stgelopments completed over the year. While borrowings rose by 8.2% to $485.4m, the cost of debt fell thanks to lower interest rates. BWP generated $71.6m from the divestment (sale) of six non-core properties.
– In terms of stgelopments and purchases, BWP spent $124.6m to buy the Australind Bunnings Warehouse site in WA and completed the stgelopment of Manly West, West Ipswich, Brendale and Maribyrnong Bunnings Warehouse stores.
– An 8.17c Final Distribution was declared as expected. The ex-distribution date was 26 June 2015 and will be payable to eligible investors on 27 August 2015. BWP had flagged distribution details in late June and has a 4.8% yield.
– BWP shares were unchanged following the result, however are rising for the fourth consecutive year and have improved by 21% Year-To-Date. BWP is near all-time highs on the ASX.