BWP Trust shares climb on first-half growth
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More news: BWP Trust jumped in early trading on the ASX after the Bunnings Warehouse landlord reported a rise in first-half profit and portfolio value.
BWP shares were up 4.6% to $3.44 by 10:30am AEDT, having added nearly 5% over the last 12 months.
BWP Trust reports first-half profit boost
The news: BWP Trust increased first-half profit and raised its portfolio value in the six months to December, with the Bunnings Warehouse landlord boosted by additional rental income following the acquisition of NPR Property REIT in March last year.
The numbers: The Australian real estate investment trust (REIT) posted a net profit of $157.1 million, up from $53.2 million a year earlier, supported by $91 million in net gains in the fair value of investment properties and derivatives. Profit excluding fair value movements grew 15% to $66.1 million.
Total income for the period was $100.6 million, up 22.2% over the period corresponding period, supported by an $18.1 million increase in rental income, largely due to the acquisition of NPR in March last year, together with annual rent increases.
However, finance costs of $17.2 million were 63.7% higher year on year, driven by a 58% increase in borrowing due to debt assumed as part of the NPR acquisition.
At 31 December, the group's total assets were valued at $3.7 billion, compared to $3 billion a year earlier. The increase followed $572 million in acquisitions during the year, and capital expenditure of $41.9 million.
BWP reported an interim distribution of 9.2 cents per unit, up 2% year on year.
The context: Looking ahead, BWP said it is focused on reinvesting in its core retail portfolio. Rent reviews are expected to contribute incrementally to property income for the second half of the year, including nine market rent reviews of Bunnings Warehouses.
BWP, which invests in commercial real estate throughout Australia, is the country's largest owner of Bunnings Warehouse sites.
The group also plans to "potentially" divest non-core assets, including the sale of its Port Kennedy retail site in Western Australia.
The source: ASX announcement
