BWP Group has reported a substantial 41.2 per cent increase in statutory profit, reaching $221.8 million for the half-year ending December 31. This surge was primarily driven by a significant uplift in the valuation of its property portfolio. The company also announced an increased interim distribution of 9.58¢ per security. BWP Group is a property investment trust focused on owning and managing a portfolio of commercial properties throughout Australia. The company primarily leases these properties to Bunnings Warehouse, a major Australian retailer.
Revenue for the period saw a rise of 3 per cent to $103.6 million, while net tangible assets per security increased by 2 per cent to $4. The trust has reaffirmed its full-year distribution guidance of 19.41¢ per security, indicating an anticipated growth of approximately 4.1 per cent on the FY25 figure.
The company’s property portfolio underwent revaluation during the half-year, resulting in a $195.9 million increase in value, bringing the total to $3.9 billion. This increase largely reflects unrealised gains amounting to $155.9 million. The weighted average capitalisation rate for the portfolio moved to 5.27 per cent.
Looking ahead, BWP Group anticipates capital expenditure in the range of $60 million to $70 million for FY26. This investment will support the progression of major repurposing and expansion projects. The company also expects that upcoming rent reviews and further leasing activity will contribute positively to income during the half-year ending June 30, with 93 leases scheduled for review.
