This article is from the Australian Property Journal archive
RETAIL bulky goods investor Bunnings Warehouse Property Trust has remained resilient, notching up an 23.4% increase in first half year profits.
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The trust made an interim distributable profit of $25.3 million for the half year ended December 2009 up from $20.5 million in the same period last year.
This was on the back of strong income growth of 11% to $39.0 million mainly due rent reviews, acquisitions and improvements to investment properties.
The trust’s AIFRS adjusted result was net profit of $41.1 million compared to a loss of $23.4 million last year.
However, BWP declared an interim distribution of 6.10 cents per ordinary unit which was 9.0% lower due mainly to the increased number of units issued following the capital raising in May 2009.
The trust revalued 11 properties independently and 49 by directors, resulting in an increase of $16.7 million to $972.2 million.
There was also an improvement in market capitalisation rates for some properties, bringing the weighted average capitalisation rate for the trust’s portfolio at December 2009 down slightly to 7.78 % (June 2009: 7.81 % and December 2008: 7.57 %).
As at December 2009 total assets were $986.7 million. The underlying net tangible asset backing of the trust’s units increased by 4.0 cents per unit, from $1.79 per unit at June 2009 to $1.83 per unit.
Gearing was 19.2% from 35.5%.
BWP said economic conditions appear to have improved although access to and the cost of finance remains an issue in the broader commercial property market.
“The trust, however, has debt capacity to fund growth and we will continue to actively manage the Trust’s portfolio by looking to acquire new assets.
“Quality Bunnings Warehouses will be the main focus. We will also consider other assets, selectively, that provide similar characteristics to Bunnings Warehouse properties by having a large area, being well located and with a quality tenant under a longer-term lease,” BWP stated.
Australian Property Journal
