BWP Trust (BWP) H2 2025 earnings summary

Executive summary

• Net profit for FY2025 was AUD 265.6 million, up 47.4% year-over-year, including AUD 135.9 million in net unrealised gains from investment properties and derivatives.

• Revenue rose 16.5% to AUD 203.3 million, driven by rental growth and the full-year contribution from the Newmark Property REIT acquisition.

• Portfolio optimisation and internalisation of management advanced, with major redevelopments and upgrades at Pakenham, Midland, Dubbo, and Fountain Gate.

• Full-year distribution increased 2% to AUD 0.1865 per unit.

• Operating environment benefited from moderating inflation, stabilising interest rates, and strong demand for large format retail property.

Financial highlights

• Profit before fair value movements was AUD 129.7 million, up 8.7% year-over-year.

• Net tangible asset backing increased 5% to AUD 3.98 per unit.

• Gearing ratio at 30 June 2025 was 21.6%, at the lower end of the board's preferred 20–30% range.

• Weighted average cost of debt was 4.4%, unchanged from prior year.

• Portfolio revaluation gains totaled AUD 135.9 million.

Outlook and guidance

• FY26 will see peak impact from Bunnings vacancies, with increased repurposing activity and CapEx expected to be four times FY25 levels.

• Distribution per unit for FY26 forecast at AUD 0.1941, a 4.1% increase, supported by capital profit release and internalisation benefits.

• CapEx expected to materially step down in FY27 as repurposing activity peaks in FY26.

• Focus for FY2026 includes repurposing ex-Bunnings properties, filling vacancies, and completing store upgrades.

• Active recycling of non-core assets and reinvestment in growth initiatives planned.