This article is from the Australian Property Journal archive
LARGE format retail landlord and owner of Bunnings Warehouse, BWP Trust, saw a marginal decline in income over the financial year.
The trust posted a total income of $152.2 million down 2.3% on 2020’s full year results of $155.8 million.
While the trust’s net profit before revaluations gains for the year was $114 million, a 3% drop from the previous year. The trust’s portfolio saw a $149.2 million revaluation uplift, an increase of 6.0% on the previous year, proving the ongoing appeal of Bunnings assets to investors. While the portfolio reported a cap rate of 5.65% and a WALE of 4.2 years.
Like-for-like rental growth was at 1.6% for the year, with occupancy at 97.8% and new leases negotiated in Port Macquarie, Cairns, Belmont North and Midland. Rent abatements totalling $473,571 were granted for the year ended 30 June 2021.
“The trust received 99.6% of rent due for the year, taking into account COVID-19 impacts,” said Erich Fraunschiel, chairman of BWP Management Limited.
While 16 market rent reviews were undertaken, including 13 Bunnings Warehouse properties, with rents largely in line with the market.
“For the 2021/22 financial year, the trust’s primary focus is on filling any vacancies in the portfolio, progressing store upgrades, extending existing leases with Bunnings through the exercise of options, completion of market rent reviews, and the continued rollout of energy efficiency improvements at its properties,” said Fraunschiel.
The trust made no new property asset acquisitions throughout the financial year, while an ex-Bunnings property in Underwood was sold in May 2021. and an ex-Bunnings property in Mindarie was sold in July 2021.
The trust’s gearing is at 17.7%, down from 19.7% in 2020 and below the board’s preferred range of 20 to 30%.
While weighted average cost of debt was at 3.1% for the year and cost of debt as of 30 June 2021, at year end, was 3.3%.
Bank facilities of $135 million and $110 million were each extended by a further year, with an additional $100 million MTN issued and a $110 million five-year forward state facility put in place. Net tangible assets were at $3.29 per unit at 30 June 2021, up 7.5% from $3.06 per unit in 2020.
BWP Trust posted a final distribution of 9.27 cents, for a full-year ordinary distribution of 18.29 cents per unit, stable from the previous year.
“The trust will continue to look for opportunities to grow the portfolio that will create value for the trust,” concluded Fraunschiel.
