This article is from the Australian Property Journal archive
Bunnings Warehouse Property Trust has posted a half year net profit of $18.8 million for the half-year to December 31, 2005, an increase of 7.3% when compared to $17.5 million recorded in the previous corresponding period.
The trust also reported total revenue of $27.2 million for the period, an increase of 10.3% over last year.
The trust said the increased in revenue was a result of income received from additions to the property portfolio and a market rent review.
As at December 31, 2005 – the trust’s total assets increased to $702.5 million with unitholders’ equity of $479.5 million and total liabilities of $222.9 million.
The trust’s gearing ratio was 27.9%.
During the half-year, the trust purchased an established Bunnings Warehouse property at Morley in Perth (formerly a BBC Hardwarehouse), from a subsidiary of Wesfarmers Limited.
The trust also completed a Bunnings Warehouse development at Vermont South, in Victoria, as well as completed an upgrade to a property at Northland, in Victoria.
Capital expenditure on the portfolio during the half-year totalled to $30.2 million.
The trust said the property investments made are consistent with the responsible entity’s strategy of acquiring properties with long term leases to substantial tenants.
At December 31, 2005 the average lease expiry term of the portfolio was 9.4 years.
During the period, a market rent review was completed on the Rockingham property, in Western Australia, by an independent valuer appointed by the tTrust and the lessee. The determined rent represented a 17.2% uplift on the passing rent.
During the half-year the entire trust portfolio was revalued in accordance with newly introduced Australian Equivalents to International Financial Reporting Standards.
In accordance with AIFRS, the portion of the revaluation gain was $15.8 million and has been recorded as a gain in the Income and Distribution Statement.
However, and in accordance with a resolution passed by unitholders in December 2005, such unrealised gains will not be distributed to unitholders.
Last week, the trust committed to a seven year lease of a 1,378 sqm tenancy for a Clark Rubber outlet at the recently completed showroom complex adjoining the Bunnings Warehouse at Bayswater, Victoria.
Negotiations continue with national retailers for the remaining 1,106 sqm tenancy.
In addition, the trust bought a 1.0 hectare parcel of land adjacent to the trust-owned property at Fyshwick, ACT for $3.5 million.
The trust said growth in revenue and earnings is expected as a result of more properties being added to the portfolio, improvements made to existing properties and programmed rental escalations.
“The ongoing expansion of the Bunnings hardware business is expected to continue to provide the Trust with investment opportunities.
“The trust will also continue to explore the acquisition of Bunnings Warehouse properties owned by Wesfarmers Limited, as well as Bunnings Warehouse properties owned by parties not related to Wesfarmers Limited,” the trust said in a statement.
The directors have declared an interim distribution of 6.22 cents per ordinary unit, an 7.4% increase on the 5.79 cents per unit in the previous corresponding period.
By Adam Parsons
