Investment 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:

Investment themes

Large format retailing property ownership - Home improvement / Bunnings focus

Status¹

236 hectares of land
73 properties
85 per cent of income from Bunnings
92 per cent of non-Bunnings income from national tenants

Priorities

Core portfolio of Bunnings Warehouse properties that meet Bunnings' business model requirements, with annual rent increases and long duration of occupancy

Sustainable portfolio returns supported by balance sheet flexibility

Status¹

9.8 per cent annualised portfolio return on invested capital
15.5 per cent gearing

Priorities

Focus on 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

Property location attributes

Status¹

79 per cent metropolitan
21 per cent regional
40 per cent of metropolitan properties within 20 kms of a central business district ("CBD")

Priorities

Well located properties in local communities, accessible, adjacent to other retail/community facilities
Highest and best use zoning

Drivers of returns

Annual rental growth

Status¹

Approximately 55 per cent of the Trust's rental income is subject to ("CPI") adjustments
45 per cent is subject to fixed annual adjustments, other than in years in which respective properties are due for a market rent review

Priorities

Continue to focus on market rent review outcomes

WELL PRICED ACQUISITIONS AND RE-INVESTMENT

Status¹

No acquisition opportunities met risk adjusted return requirements during the period

Priorities

Re-investment in existing portfolio, and acquisitions as and when it makes commercial sense to do so

COST OF FUNDING

Status¹

S&P A- and Moody's A3 rating re-affirmed

Priorities

Continue to diversify funding and extend duration of debt

Long-term value creation

Pro-active management of existing properties

Status¹

Portfolio 97.6 per cent leased
Two properties repositioned for large format retail
Two properties being repositioned for mixed use
One property being repositioned for multi-tenanted industrial
One property being rezoned for mixed use
One properties being considered for divestment

Priorities

Continue to optimise the value of all properties in the portfolio

Portfolio growth

Status¹

No acquisition opportunities met risk adjusted return requirements during period

Priorities

Acquisitions as and when value can be created

Effective management of the trust and its capital

Status¹

Ten year average total unitholder return of 15.3 per cent per annum

Priorities

Secure and growing income stream
Long-term capital growth

Safety and Wellbeing

Health, Safety and Environment Commitment

BWP Trust is committed to the health and safety of our employees, contractors and visitors, to acting ethically and operating its business in a sustainable manner with respect to the environment.

Commitment

Sustainability & Environment Princples

Trust's ownership and management of established commercial property is considered to be low in intensity in terms of emissions, waste, and use of energy and materials, and low impact on biodiversity.

Further detail on our Sustainability & Environmental impacts and management can be found here.

Sustainability Policy

Social

The social impacts of the Trust are limited due to the passive nature and localised scope of the Trust's operations and the regulated environment in which it operates.

Further detail on social impacts and risk management can be found here.

Governance Approach

The 2021 Corporate Governance Statement, explaining the corporate governance framework and practices that we have adopted as they relate to the responsible entity and the Trust.

Further detail on the Trust's Corporate Governance framework can be found here.

Corporate Governance Statement

Energy Efficiency Improvements

for year ended 30 June 2021

A further 12 air conditioning units were replaced to phase out ozone depleting refrigerant models and initiatives introduced to improve efficiency of air conditioning units. New non ozone depleting refrigerants were also retrofitted into larger air conditioning systems in one store owned by the Trust
New energy efficient LED lights were installed internally in eight stores during the year. As at 30 June 2021, 96 per cent of the Trust owned stores had LED lighting in one or more of the car park, nursery trading area, canopy trading area, or in the main store
Solar power generation was installed at three properties, bringing the total installations to 23
A Tesla Battery has been installed and continues to collect surplus energy from the solar installation which is used on site at one property

Water

91 per cent of the Trust-owned stores have in place water tanks for the recycling of roof collected rain water

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

Email Alerts

Investment Approach

Investment themes

Large format retailing property ownership - Home improvement / Bunnings focus

Sustainable portfolio returns supported by balance sheet flexibility

Property location attributes

Drivers of returns

Annual rental growth

WELL PRICED ACQUISITIONS AND RE-INVESTMENT

COST OF FUNDING

Long-term value creation

Pro-active management of existing properties

Portfolio growth

Effective management of the trust and its capital

Health, Safety and Environment Commitment

Sustainability & Environment Princples

Social

Governance Approach

Energy Efficiency Improvements

Water

Quick links

Location

Speak to us today

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