BWP Trust shares gain on 'encouraging' FY result
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More news: BWP Trust shares gained after reporting full-year results in line with consensus expectations and targeting FY25 growth.
BWP shares were up 1.7% to $3.59 by 12:50am AEST.
What they said: "Overall, the presentation has been updated and seems more focused on delivering growth and returns for shareholders, which is encouraging," Jarden analysts said.
"BWP seems a bit more active in terms of asset recycling and the acquisition of the NPR portfolio provides further opportunities for growth and scale.
"We see BWP as a defensive play on non-discretionary retail and the stock is now trading at a 7% discount to NTA [net tangible assets] but until we see more evidence of a growth strategy, we see better risk-reward elsewhere in the sector.
"We believe the key catalyst to become more positive on BWP is if the more active asset management and acquisition strategy will ultimately drive a more attractive growth profile."
BWP Trust profit jump bolstered by acquisition spree
The news: BWP Trust increased full-year profit and added to its portfolio value in FY24, as the Bunnings Warehouse landlord was buoyed by a raft of new acquisitions during the year.
The numbers: The Australian Real Estate Investment Trust (REIT) posted a net profit of $180.2 million, up from $36.7 million a year earlier, boosted by $61 million in net unrealised gains in the fair value of investment properties and derivatives. Profit before fair value movements grew 5% to $119.3 million.
Total income was $174.5 million, up 10.3% on the previous year, supported by a $15.8 million increase in rental and other property income, due to acquisitions and annual rental increases.
At the end of the year, the group's total assets were $3.6 billion, up from $3 billion a year earlier. The increase followed $572 million in acquisitions during the year, and capital expenditure of $41.9 million.
BWP reported a full-year distribution of 18.29 cents per unit, in line with FY23. It expects distribution per unit for FY25 to be around 2% higher than FY24.
The context: BWP, which invests in commercial real estate throughout Australia, is the country's largest owner of Bunnings Warehouse sites with a portfolio of 61 stores.
In FY24, BWP completed the acquisition of Southport Showrooms in Queensland for $10 million and Broadmeadows Homemaker Centre in Victoria for $20 million. The REIT said the new sites provide "potential options" for Bunnings' expansion and enable additional income generation for BWP.
These deals were in addition to the $540 million acquisition of Newmark Property REIT, completed in June, which provided BWP with nine additional properties.
The source: ASX announcement
