In today’s daily we have covered stock research on BWP Trust. To view Mining Stocks That Pay Dividends and Dividend Calendar, please click on the link.

S&P 500 was down by 39.10 points or 2.09% to 1833.08 on Thursday. U.S. stocks fell, with Nasdaq sinking the most since 2011, as technology shares resumed a selloff on concern valuations are too high as earnings season begins. Treasury rates sank to a three-week low on speculation interest-rate increases won’t be accelerated.

The Dow Jones Internet Composite Index sank 4.2 percent and the Nasdaq Biotechnology Index plunged 5.6 percent, the most since 2011. The S&P 500 jumped 1.1 percent yesterday, the most since March 4, on the Fed minutes, pushing its two-day advance to 1.5 percent. Today’s plunge erased the index’s gain for the year. The gauge has fallen 3 percent from a record on April 2.


S&P 500 Daily Chart   (Source – Thomson Reuters)
 
S&P ASX 200 was up 17.0 points or 0.31% and closed at 5480.80 points on Thursday.Global steel demand is forecast to decline this year as the Chinese economy slows from its breakneck speed, raising concerns about the impact it will have on Australia as one of the world’s top iron ore producers.

German pension fund Union Investment Real Estate has purchased Flight Centre’s planned new headquarters in Brisbane in a deal worth $203 million. Australia’s biggest wheat producers Ron Greentree and Ken Harris have offered for sale the prized Boolcarrol and Milton Downs properties outside Moree, northern NSW, with expectations it will sell for $150 to $200 million.


S&P ASX 200 Daily Chart (Source – Thomson Reuters)


The top gainers on ASX 200 were:-

Code	Name	Price	Change	%Change
WTF	Wotif	$2.73	$0.17	6.64%
RRL	Regis	$2.65	$0.16	6.43%
TPM	TPG Telecom	$6.28	$0.31	5.19%
LYC	Lynas	$ 0.205	$0.01	5.13%
SIR	Sirius Resources	$2.56	$0.12	4.92%

 
Mining Stocks That Pay Dividends

Dividend Calendar

 
Stock of the Day – BWP Trust (BWP)

BWP Trust is focused on warehouse/bulky goods retailing properties with relatively large site areas, high visibility from arterial roads and attractive demographics in surrounding areas. The portfolio is well diversified across most Australian states with the vast majority of properties being on long term leases to big box hardware chain Bunnings Group, a wholly owned subsidiary of Wesfarmers.

BWP Trust’s first half fiscal 2014 distributable profit rose 15% on acquisitions and to a lesser extent solid like for like rental growth of 2.8%. The interim result was in line with our expectations though other operating expenses were a little ahead of expectations and interest expense a little below.


Source - BWP

The delay of settlement on recent acquisitions is a mild headwind to fiscal 2014 and 2015 earnings, though partly offset by lower expected debt balance. BWP has a strong and mutually beneficial relationship with Wesfarmers. This combined with highly successful key tenant should allow the trust to generate goo risk adjusted returns over the long term. 


BWP Daily Chart  (Source - Thomson Reuters)
 
Portfolio metrics remain strong with 99.3% occupancy and a seven year weighted average lease expiry. Net tangible asset or NTA backing increased 5% over the half to AUD 2.02 per unit on the back of property revaluation gains. Further gains are likely over the coming year on compression of capitalization rates and if solid rental growth is achieved from market rent reviews. We believe the stock is slightly overvalued at its current price and would review the stock at a later date.
  

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