BWP Trust

FY18 Performance in line with FY17: BWP Trust’s (ASX: BWP) stock fell 1.8% on August 01, 2018 after the company (with a market capitalisation of $2.13bn) delivered 0.6% growth in the revenue to $153.4m due to rental growth from the existing property portfolio. In FY 18, the company reported like-for-like rental growth of 2.5 per cent after taking into account the average inflation on CPI linked leases of 2.0 per cent. During the year 2018, BWP finalized seven market rent reviews with weighted average 4.6 per cent increase in annual rent, including four Bunnings Warehouses with weighted average 4.1 per cent increase in annual rent. Moreover, the Finance costs were 2.4 per cent lower to $21.5 million against last year, due to the slightly lower average level of borrowings, which were 1.8 per cent lower than the previous year ($470.6 million compared with $479.1 million). The weighted average cost of debt for the year (finance costs as a percentage of average borrowings) is in line with the previous year at 4.6 per cent. The other operating expenses are of $6.0 million for the year, which were slightly higher than the previous year of $5.9 million.
 
The company has reported for FY18 net profit of $183.1 million, including $69.9 million in gains in the fair value of investment properties. This is compared with net profit last year of $223.8 million which included gains of $111.3 million in the fair value of investment properties. Additionally, for FY 18, BWP expects further rental growth from its core Bunnings Warehouse property portfolio. It is expected that the divestment of up to four properties will be completed during the year and that other ex-Bunnings Warehouse stores will be transitioned to alternative uses with some impact on overall rental income. BWP expects to at least maintain distribution growth equivalent to that of FY18. Meanwhile, BWP stock has risen 4.42% in three months as on July 31, 2018. As of now, we give an “Expensive” recommendation on the stock at the current price of $ 3.250.


FY 18 Financial Performance (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.