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 31 December 2023
  • 239.9 hectares of land
  • 75 properties
  • 82 per cent of income from Bunnings
  • 84 per cent of income from Westfarmers
  • 93 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 31 December 2023
  • 10.3 per cent annualised portfolio return on invested capital("ROIC")1
  • 17.1 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 31 December 2023
  • 80 per cent metropolitan
  • 20 per cent regional
  • 40 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
  • Highest and best use zoning

Drivers of returns

Annual rental growth

Status as at 31 December 2023
  • Approximately 53 per cent of the Trust's rental income is subject to CPI adjustments, with 47 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
  • Balanced approach to rental growth mix (combination of CPI and fixed annual adjustments)


Status as at 31 December 2023
  • Two acquisition opportunities (Broadmeadows Homemaker Centre and Southport Showrooms) met risk adjusted return requirements during the period
  • Reinvestment in existing portfolio
  • Acquisation as and when it makes commercial sense to do so


Status as at 31 December 2023
  • S&P A- and Moody's A3 rating re-affirmed
  • Continue to diversify funding and extend duration of debt

Long-term value creation

Pro-active management of existing properties

Status as at 31 December 2023
  • Portfolio 97.4 per cent leased
  • Four properties being repositioned for large format retail
  • One property being repositioned for mixed use
  • One property being repositioned for multi-tenanted industrial
  • One property being rezoned for mixed use
  • Agreement for a Bunnings lease extension at one property
  • Agreement to divet two properties
  • Continue to optimise the value of all properties in the portfolio

Portfolio growth

Status as at 31 December 2023
  • Twoproperties were acquired during the period
  • Acquisitions as and when value can be created

Effective management of the trust and its capital

Status as at 31 December 2023
  • Ten-year average total unitholder return of 10.3 per cent2 per annum
  • Secure and growing income stream
  • Long-term capital growth
  • Improve energy effeciency and maintain net zero CO2e tonnes Scope 1 and 2 emissions