Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • BWP Trust’s FY 2025 net profit rose 47.4% to AUD 265.6 million.

  • A final unfranked dividend of 9.45 cents per share brings the full-year payout to 18.65 cents.

  • Revenue increased by 16.5% to AUD 203.3 million for the year ended 30 June 2025.

Shares of BWP Trust (ASX:BWP) edged higher in Wednesday morning trade after the release of the company’s full-year FY 2025 financial results. The ASX 200 real estate investment trust (REIT), whose portfolio includes properties leased to Bunnings, saw its share price trade at AUD 3.64, up from AUD 3.63 at the previous close.

The results showed a 47.4% year-on-year increase in net profit to AUD 265.6 million. This profit figure included AUD 135.9 million in net unrealised gains from fair value adjustments to investment properties and derivatives.

Revenue for the 12 months ended 30 June 2025 stood at AUD 203.3 million, marking a 16.5% increase compared to the previous financial year.

Dividend Increases as Portfolio Remains Resilient

The company declared a final unfranked dividend of 9.45 cents per share, bringing the total dividend for FY 2025 to 18.65 cents per share. Based on the current share price, BWP is offering an unfranked dividend yield of approximately 5.1%, combining both trailing and pending components. Eligible shareholders can expect to receive the final dividend payment on 27 August 2025.

Looking ahead, BWP has forecast an FY 2026 unfranked dividend of 19.41 cents per share, representing an increase of 4.1% from FY 2025.

Portfolio Performance and Operational Metrics

BWP reported a like-for-like rental growth rate of 3.0% for the year, slightly below the 4.2% recorded in FY 2024. This includes an average inflation-linked lease adjustment of 2.7% through Consumer Price Index (CPI) mechanisms.

The trust’s weighted average lease expiry (WALE) improved to 4.5 years as of 30 June 2025, up from 3.8 years at the end of the previous financial year. Its leasing occupancy stood at 98.6%, compared to 99.1% a year earlier.

On the balance sheet, gearing remained largely stable year-on-year at 21.6%.

Outlook and Development Plans

BWP plans to continue repurposing former Bunnings sites during FY 2026, filling any vacancies and upgrading select stores as part of ongoing asset optimisation.

Management described FY 2026 as a "transitional year" and noted that internalisation initiatives and lower operating expenses are expected to contribute to profit growth.

The company also commented on the broader market, observing that during FY 2025, the operating environment was influenced by moderating inflation, stabilising interest rates, and demand for large format retail properties.