BWP Trust (BWP) H2 2026 earnings summary

Executive summary

• Delivered strong financial and operating performance in FY26, driven by portfolio quality, tenant strength, rental growth, and key reset activities including management internalisation and Bunnings lease resets.

• Portfolio valuation increased by AUD 257 million (6.9%), with NTA up 3.3% to AUD 4.11 per security.

• Funds from operations (FFO) rose 4.5% year-over-year to AUD 140.9 million, and distribution per security grew 4.1% to 19.41 cents.

• Operational execution included 62 Bunnings leases reset, high occupancy (98.4%), and significant capital expenditure of AUD 49.4 million.

• Advanced strategic priorities through asset acquisitions, divestments, and repurposing initiatives.

Financial highlights

• Net profit after revaluations was AUD 408.4 million, up 53.8% year-over-year.

• FFO reached AUD 140.9 million, a 4.5% increase from the prior year.

• Management expense ratio reduced to 0.34% from 0.66% in FY 2025.

• Portfolio value at 30 June 2026 was AUD 3,961.8 million, with a net fair value gain of AUD 371.4 million for the year.

• Gearing reduced to 18.5% from 21.6% at the prior year end.

Outlook and guidance

• FY27 distribution guidance of 20.00 cents per security, representing 3% growth and a payout ratio of ~104% of FFO.

• FFO in FY27 expected to benefit from rental growth, leasing spreads, acquisitions, repurposing, and lower interest expense, but moderated by reduced income from divestments.

• Capital expenditure for FY27 expected between AUD 55 million and AUD 65 million, reflecting elevated repurposing and expansion activity.

• Guidance assumes no major economic disruption or material market change.

• Focus on operational execution, positive leasing spreads, and further asset acquisitions.