BWP Trust (BWP)



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General Information
Company Name: BWP Trust
Stock Code: BWP
Website: www.bwptrust.com.au
GICS Sub-Industry: Diversified Real Estate Investment Trusts
Market Cap ($M): 1,529
Equiv. Shares (M): 640

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 2.390 $ 2.390 $ 2.400 $ 2.365 $ 2.390 597,952 0%

Current Broker Consensus Recommendation more
Recommendation: Strong Sell (4.75)
Recommendation Date: 26th Sep 2014
Brokers Surveyed: 4

Company Overview

Business Description:
BWP Trust (BWP) is a listed managed investment scheme which invests in commercial real estate throughout Australia. The majority of its properties are Bunnings Warehouse properties tenanted by Bunnings Group Limited, a wholly owned subsidiary of Wesfarmers Limited. The BWP Trust is managed by unlisted responsible entity, BWP Management Limited.

Strategy Analysis:
Being the only trust solely focusing on the bulky goods retail sub-sector, BWP seeks to provide unitholders with a secure, growing income stream underpinned by long term inflation linked leases. Properties are simple, requiring little maintenance capex. Tenant led development/extensions often occur as leases roll over. Management is becoming more active with increasing acquisitions and divestments to diversify and refine the portfolio towards higher growth areas. Exposure to non-Wesfarmers related tenants will increase, though new tenants won’t exceed 20% of income. BWP Trust reported NPAT up 52.8% to $48.83m for the half-year ended 31 December 2012. Revenues from ordinary activities were $54.0m, up 9.3% from the same period last year. The increase in revenues was mainly due to growth of the property portfolio during or since the corresponding period - from acquisitions and improvements to investment properties (adding approximately $3.2m) and rent reviews (adding approximately $1.5m). Basic and Diluted EPS was 9.2 cents compared to 6.15 cents last year. Net operating cash flow was $36.87m compared to $34.92m last year. The interim dividend declared was 7.00 cents compared with 6.63 cents last year. Property income for the second half of 2012/13 will include a full six months rental income the Bunnings Warehouse-anchored homemaker centre in Gladstone, Qld, acquired in September 2012.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F 101.9 15.8 2.0 15.1 15.8 6.6 0.0
2015  F 99.1 15.5 3.2 15.4 15.5 6.5 0.0
2014  A 92.0 15.0 5.5 15.7 14.7 6.2 0.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
BWP Trust (BWP) $1,542 M -0.2727 0.0326 0.0206 16.0560 15.5484 15.2339 6.10 6.43 6.56
CFS Retail Property Trust (CFX) $5,979 M -0.0071 0.1126 0.0174 15.7683 14.1721 13.9303 6.94 7.04 7.17
Dexus Property (DXS) $6,085 M -0.2670 0.0766 0.0140 14.0704 13.0688 12.8884 5.59 6.07 6.38
Goodman Gp (GMG) $9,024 M 0.0702 0.0732 0.0655 15.0773 14.0489 13.1854 4.00 4.31 4.57
Investa Office Fund (IOF) $2,069 M 0.4908 -0.3066 0.0335 10.0507 14.4946 14.0241 5.49 5.67 5.91

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
BWP 1.27 15.8 1.16 5.93
Market 0.99 15.4 1.26 1.70
Sector 1.51 13.0 1.05 3.55

Directors
Name Position Start Date
Mr Michael James Wedgwood Managing Director 24 February 2014
Mr John Ambrose Austin Non-Executive Chairman 10 September 2004
Mr Anthony (Tony) John Howarth Non-Executive Director 01 October 2012
Ms Fiona Elizabeth Harris Non-Executive Director 01 October 2012
Mr John King Atkins Non-Executive Director 01 April 2014
Rick Higgins Non-Executive Director 05 December 2007

Management
Name Position
Karen Lange Company Secretary
Grant W Gernhoefer General Manager

Substantial Shareholders
Holding Name
130,712,708 (24.31%) Wesfarmers Group

Calendar of Events
Date Event
06 August 2015 Report (Annual)
06 August 2015 Report (Prelim)
11 February 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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