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 ending 30 June 2024.

• Completed the $540m acquisition of Newmark Property REIT (NPR), two adjoining properties, and two Bunnings upgrades, adding scale and diversification.

• Portfolio leased at 99.1%, up from 97.1% last year, with a WALE of 3.8 years.

• Divested three non-core assets, realising an IRR of 11.9%, and NPR debt was successfully refinanced.

Financial highlights

• Total income rose 10.3% year-over-year to $174.5 million, up from $158.2 million.

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

• Distribution per unit was 18.29c, unchanged from the prior year, with a final distribution of 9.27c per unit.

• Net Tangible Assets increased to $3.79 per unit from $3.75 per unit (+1.1%).

• Capital expenditure increased to $41.9m (from $14.3m), and acquisitions totaled $572.0m.

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.