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

Status as at 30 June 2021
  • 239 hectares of land
  • 74 properties
  • 86 per cent of income from Bunnings
  • 91 per cent of non-Bunnings income from national tenants
  • 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

Status as at 30 June 2021
  • 9.8 per cent annualised portfolio return on invested capital("ROIC")
  • 17.7 per cent gearing
  • 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

Status as at 30 June 2021
  • 80 per cent metropolitan
  • 20 per cent regional
  • 39 per cent of metropolitan properties within 20 kms of a central business district ("CBD")
  • Well located properties in local communities, accessible, adjacent to other retail/community facilities
  • Re-zoning
  • Home improvement, supermarkets, activity, experiences, residential, healthcare, self-storage, automotive and last mile distribution

Drivers of returns

Annual rental growth

Status as at 30 June 2021
  • 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
  • Continue to focus on market rent review outcomes


Status as at 30 June 2021
  • Upgrades were completed for two Bunnings Warehouse properties
  • Reviewed and bid on a number of aquisition opportunities during the year, but were not successful.
  • Re-investment in existing portfolio, and acquisitions as and when it makes commercial sense to do so


Status as at 30 June 2021
  • S&P A- and Moody's A3 rating re-affirmed
  • A new $100 million seven-year medium term note (bond) maturing in March 2028 was issued. At the same time, the $100 million debt facility with Sumitomo Mitsui Banking Corporation was restructed to a $110 million five-year forward start facility expected to commence in April 2022. This facility is expected to be utilised to repay the $110 million bond maturing in May 2022.
  • Bank debt facility of $135 million with Westpac Banking Corporation and $110 million with Commonwealth Bank of Australia extended for a further year each to April 2023 and July 2023 respectively
  • Continue to diversify funding and extend duration of debt

Long-term value creation

Pro-active management of existing properties

Status as at 30 June 2021
  • Portfolio 97.8 per cent leased
  • Two properties repositioned for large format retail
  • Three properties being repositioned for industrial
  • One property is being repositioned for mixed-use
  • Two properties being re-zoned and the re-zoning process has commenced for another property
  • Completed an upgrade of two Bunnings Warehouses
  • Agreement to upgrade a further Bunnings Warehouse
  • Continue to optimise the value of all properties in the portfolio

Portfolio growth

Status as at 30 June 2021
  • Reviewed and bid a number of acquisition opportunities during the year, but were not successful
  • Acquisitions as and when value can be created

Effective management of the trust and its capital

Status as at 30 June 2021
  • Ten year average total unitholder return of 15.1 per cent per annum
  • Secure and growing income stream
  • Long-term capital growth