BWP Trust posts 47% rise in full-year profit, beating estimates
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The news: Bunnings landlord BWP Trust has reported full-year net profit of $265.6 million, up 47.4% from last year’s result of $180.2 million and topping market expectations collated by Visible Alpha.
The numbers: The real estate investment trust's net profit for FY25 was 1.5% higher than market estimates of $261.7 million. This included $135.9 million in net unrealised gains in the fair value of investment properties and derivatives.
BWP reported revenue of $203 million, up 16.5% compared to the previous year, and in-line with market estimates.
The company also declared a final dividend of 9.45 cents per share, taking the full-year distribution to 18.65 cents, up from the 18.29 cents declared last year. Analysts had expected total dividends of 18.70 cents per share.
The context: BWP said the operating environment for the financial year was shaped by moderating inflation, stabilising interest rates, and resilient demand for large format retail property.
Retail real estate remained attractive, the company noted, supported by strong supply-demand fundamentals and population activity.
BWP said new development activity continued to be constrained by elevated construction costs and limited site availability. This led to lower supply, which supported high occupancy, rental growth and asset values across the sector.
A few days before the end of the financial year, BWP signed a deal with Wesfarmers that would give the real estate investment fund management independence from the agribusiness giant.
It is proposed that BWP Property Group be formed in order to acquire Wesfarmers’ wholly owned subsidiary BWP Management for $142.6 million.
The source: ASX
