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Strategic framework and business approach

BWP Trust aims to provide unitholders with a secure and growing income stream and long-term capital growth. This is achieved through strong alignment with, and support for, the ongoing property needs of its customers, while also responding to the needs of the local communities where the Trust owns real estate.

To achieve this core purpose the responsible entity invests on behalf of the Trust according to the following strategies, objectives and investment criteria:

Frameworks

Investment areas

Large format retailing property ownership - Home improvement / Bunnings focus

THEMES
  • Core portfolio of Bunnings Warehouse properties that meet Bunnings' business model rewuirements, with annual rent increase and long duration of occupancy
Status
  • 260.7 hectares of land
  • 82 properties
  • 80 per cent of income from Bunnings
  • 82 per cent Westfarmers Group income
  • 87 per cent of non-Bunnings income from national tenants

Sustainable portfolio returns supported by balance sheet flexibility

THEMES
  • Long-term value creation by re-investing in and growing the core portfolio of Bunnings Warehouse properties, and from maximizing the alternative use prospects of a number of properties in the portfolio
Status
  • 7.6 per cent annualised portfolio return on invested capital("ROIC")1. 10.2 per cent excluding NPR
  • 21.5 per cent gearing

Property location attributes

THEMES
  • Well located properties in local communities, accessible, adjacent to other retail/community facilities
  • Re-zoning potencial for higher and better use
  • Focus on home improvement, supermarkets, healthcare, automotive and last mile distribution fullfillment
Status
  • 80 per cent metropolitan
  • 20 per cent regional
  • 45 per cent of metropolitan properties within 20 kms of a central business district ("CBD")

Returns drivers

Rental growth

THEMES
  • Continue to focus on market rent review outcomes
Status
  • 44 per cent of the Trust's rental Income is subject to CPI agjustments
  • 56 per cent is subject to fixed annual adjustments

ACQUISITIONS AND RE-INVESTMENT

THEMES
  • Reinvestment in existing portfolio and acquisation as and when they make commercial sense
Status
  • Upgrade being on Dubbo Bunnings Warehouse
  • Acquisition of Broadmeadows Homemaker Centre and Southport Showrooms
  • Acquisition of ASX listed A-REIT NPR

COST OF FUNDING

THEMES
  • Continue to diversify funding and extend duration of debt
Status
  • S&P A- and Moody's A3 rating re-affirmed
  • NPR secured debt facility refinanced (June 2024)

Value creation

Pro-active management of existing properties

Priorities
  • Continue to optimise the value of all properties in the portfolio
Status
  • Portfolio 99.1 per cent leased
  • Port Kennedy divestment progressing
  • Noarlunga and Fountain Gate properties being repositioned for large format retail
  • One property being repositioned for industrial

Effective management of the trust and its capital

THEMES
  • Secure and growing income stream
  • Long-term capital growth
Status
  • 10year average total unitholder return of 8.7 per cent per annum

In delivering BWP's objective of providing unitholders a secure and growing income stream and long-term capital growth, the Group's key areas of focus align to its three strategic pillars: portfolio optimisation, profitable growth and portfolio renewal. To enable these strategic pillars, BWP prioritises commercial discipline, effective capital allocation and access, sustainability, and active and effective collaboration with key stakeholders.

BWP's three strategic pillars are summarised below:

  • Portfolio optimisation - optimising and leveraging the existing network while managing asset repurposing requirements.
  • Profitable growth - expanding the core portfolio and assessing adjacent growth segments and addressable markets, where feasible.
  • Portfolio renewal - focusing on active value creation through capital recycling and reinvestment in growth initiatives to complement the core portfolio, while maintaining a strong and flexible balance sheet.

Underpinning the strategic pillars are three supporting principles comprising:

  • Operating excellence - effective management of lease renewals and rent reviews and approved and planned developments.
  • Capital structure - proactive debt refinancing and capital management aligned to portfolio investment plans and acquisition target site identification.
  • Asset management - structured planned and unplanned maintenance and asset renewal and portfolio network planning via balance sheet leverage.

In implementing the strategic pillars, BWP's operating model is guided by themes focused on the areas of investment, drivers of returns and value creation initiatives.

BWP

Quick links

Location

Level 14 Brookfield Place,
Tower 2,
123 St Georges Terrace,
PERTH WA 6000

Speak to us today

Tel: +61 8 9327 4356
Facsimile: +61 8 9327 4344
Email: investorrelations@bwptrust.com.au