BWP Trust (BWP) H2 2024 earnings summary

Executive summary

• Achieved strong portfolio momentum and like-for-like rental growth of 4.2%, supported by acquisitions, asset expansion, repurposing, and lease renewals for the year ended 30 June 2024.

• Completed the $540 million acquisition of Newmark Property REIT (NPR), adding scale, diversification, and nine properties to the portfolio.

• Portfolio occupancy increased to 99.1%, with WALE rising to 3.8 years.

• Divested three non-core assets, achieving an aggregate IRR of 11.9%.

• Full-year distribution per unit was 18.29 cents, unchanged from the prior year.

Financial highlights

• Total income rose 10.3% year-over-year to $174.5 million.

• Net profit was $180.2 million, including $61 million in net unrealized gains, up from $36.7 million last year.

• Net tangible assets per unit increased to $3.79, up 1.1% year-over-year.

• Gearing increased to 21.5%, reflecting higher borrowings post-acquisition.

• Weighted average cost of debt rose to 4.4% from 3.6% last year.

Outlook and guidance

• Distribution per unit for FY2025 expected to be approximately 2% higher, assuming no major economic disruptions.

• Focus areas for FY2025 include repurposing ex-Bunnings properties, filling vacancies, completing upgrades, extending leases, and energy efficiency improvements.

• Continued recycling of divestment proceeds into growth initiatives while maintaining a strong balance sheet.