This article is from the Australian Property Journal archive
BUNNINGS Warehouse landlord BWP Trust nearly tripled its net profit in FY24, a year that saw it create a $3.5 billion large-format retail trust via the takeover of Newmark Property REIT.
Net profit including for FY24 was $180.2 million, including $61.0 million in net unrealised gains in the fair value of investment properties and derivatives. This compared with last year’s net profit of $36.7 million.
Revenue lifted 10.3% to $174.5 million.
Like-for-like rental growth was 4.2%. Market rent reviews on six properties, including five Bunnings Warehouse properties, were finalised during the year, with an average 4.4% increase realised.
The weighted average lease expiry lifted modestly to 3.8 years, while the weighted average capitalisation rate increased to 5.54% from 5.38%.
Full-year distributions was steady at 18.29c per ordinary unit. BWP released $1.8 million of capital profits during the year.
BWP completed the $540 million acquisition of Newmark Property REIT in June. The merger was completed by way of an off-market takeover comprising an all-scrip transaction,
Providing BWP with nine properties.
“The acquisition also provides a platform for income and capital growth, consistent with BWP’s objective of providing unitholders with a secure and growing income stream and long-term capital growth,” it said.
“Post-merger activities are well advanced and synergies are expected from the combination of the two listed entities and the integration of the NPR portfolio into the larger BWP portfolio, as well as the refinancing of NPR’s debt which was successfully completed in June 2024.
“Importantly, BWP’s strong capital position has been maintained post-acquisition, with gearing remaining at the lower end of BWP’s target range, affording BWP continued financial flexibility and capacity.”
Gearing was 21.5%, up from 15.8%.
Net tangible assets per unit lifted slightly to $3.79.
