BWP Trust ups profit, dividend slides
Bunnings Warehouse Trust (BWP) has lifted first-half profit by 14.7 per cent to $42.9 million, but its interim dividend fell from seven cents a share to 6.83 cents because of dilution caused by a $200 million rights issue in September last year.
Revenue was up 10.7 per cent to $59.8 million, mainly attributable to growth in the company's property portfolio.
At the end of December, the Trust's total assets were valued at $1.66 billion, with unitholders' equity of $1.27 billion and total liabilities of $395 million.
The underlying net tangible asset backing of the Trust's shares increased by nine cents during the period from $1.93 to $2.02 per share.
The Trust said it should continue to benefit from improved revenue, additions to its portfolio, incremental rental growth and a lower average cost of debt.
"Property income for the second half will include a full six months' rental income from the acquisition of the Bunnings Warehouses during the first half," the company said.
In September 2013, shareholders approved a plan to acquire 10 properties from Bunnings comprising two operational warehouses, for leaseback to Bunnings, and eight properties on which Bunnings plans to operate warehouses.
The acquisitions were funded through a $200 million rights issue.
BWP said today it would continue to look to acquire quality, value-accretive investment properties.
All up, the Trust owns 67 Bunnings Warehouses, two development sites on which Bunnings Warehouses are to be developed, a standalone showroom property and four industrial properties leased to tenants for manufacturing, storing and distributing goods and services.
Shares in BWP closed up one cent at $2.27.
