Slide 1: Full-year results to 30 June 2023
Full-year results to 30 June 2023 August 2023 For personal use only
Slide 2: Important Notice
Important Notice For personal use only The information provided in this presentation should be considered together with the financial statements for the period and previous periods, ASX announcements and other information available on the Trust’s website. This presentation has been prepared by BWP M
Slide 3: Acknowledgement of Country
Acknowledgement of Country For personal use only We acknowledge the Traditional Owners of Country throughout Australia and their continuing connection to lands and waterways upon which we depend. We pay our respects to their Elders, past and present. 3 ACKNOWLEDGEMENT OF COUNTRY | FULL-YEAR RESULTS
Slide 4: Presentation outline
Presentation outline For personal use only Michael Summary slides 5 - 7 Wedgwood Results Managing Director slides 8 - 11 BWP Management Portfolio Limited slides 12 - 18 Core portfolio slides 19 - 26 Andrew Ross Alternative use properties Head of Property slides 27 - 28 BWP Management Capital managem
Slide 5: Summary
Summary For personal use only HOME GLADSTONE, QLD 5 SUMMARY | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 6: 2023 Full-year results at a glance
2023 Full-year results AT A GLANCE For personal use only $158.2m ▲ $113.6m 18.29 cpu 10.4% pa2 Net profit before $3.75 Total income 3.2%1 revaluations Ordinary distribution NTA 10 yr total return PORTFOLIO PORTFOLIO CAPITAL PERFORMANCE MANAGEMENT MANAGEMENT 5.0% 10 A- S&P rating like-for-like rental
Slide 7: Adapting for a low-carbon economy
Adapting for a low-carbon economy PROGRESS For personal use only > No Scope 1 emissions are produced as the Trust’s business activities do not directly release emissions into the atmosphere > Net-zero Scope 2 emissions for year ended 30 June 2023 – Purchased green electricity for eight properties wh
Slide 8: Results
Results For personal use only BUNNINGS FRANKSTON, VIC 8 RESULTS | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 9: 2023 financial performance
2023 financial performance VS PCP For personal use only FY23 PCP1 Total income ($m) 158.2 153.3 Other expenses ($m) 10.0 8.7 Net profit2 (excluding revaluations) ($m) 113.6 114.7 Management expense ratio3 (%) 0.64 0.64 Number of units on issue (m) 642.4 642.4 Full-year ordinary distribution (cents p
Slide 10: 2023 financial performance: six monthly
2023 financial performance SIX MONTHLY 6 months 6 months 6 months For personal use only to Jun 2023 to Dec 2022 to Jun 2022 Total income ($m) 79.6 78.6 77.4 Other expenses ($m) 5.5 4.5 4.4 Distributable amount ($m) 59.6 57.9 59.6 Property revaluation gains/(losses)1 ($m) (130.8) 53.9 80.1 Net profit
Slide 11: 2023 financial performance: five-year performance
2023 financial performance FIVE-YEAR PERFORMANCE For personal use only FY23 FY22 FY21 FY20 FY19 Income ($m) 158.2 153.3 152.2 155.8 156.3 Distributable profit1 ($m) 117.5 117.5 117.5 117.5 116.4 Total assets ($m) 2,960.2 3,021.9 2,674.6 2,552.6 2,382.3 Borrowings ($m) 468.5 455.6 474.7 503.2 412.7 G
Slide 12: Portfolio
Portfolio For personal use only BROWNS PLAINS, QLD 12 PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 13: Like-for-like rental growth
Like-for-like rental growth FY2023 Average increase For personal use only 0.5% Market1 45.7% Fixed 3.0% 5.0% like-for-like rental growth 53.8% CPI 6.7% Year ended 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 30 June (%) Rental growth2 5.0 3.03 1.2 2.1 2.3 2.5 2.1 2.4 2.9 4.0 CPI Growth4 6.7 3.3
Slide 14: Bunnings market rent review outcomes
Bunnings market rent review OUTCOMES For personal use only > Nine Bunnings market rent Property Location Passing Reviewed Variance Effective reviews were finalised during rent ($pa) rent ($pa) (%) date the year Hawthorn, VIC1,7 3,380,642 3,325,207 (1.6) 29-Oct-20 Coburg, VIC1,2 1,706,685 1,877,353 1
Slide 15: Lease covenant summary
Lease covenant summary AS AT 30 JUNE 2023 For personal use only Covenant % of total rent Wesfarmers Group 85.2 Commonwealth and State Governments 2.8 Other national retailers, automotive and self-storage businesses1 11.0 Remaining tenants 1.0 Total 100.0 1 Includes Amart, AP Eagers, Autobarn, Beacon
Slide 16: Capitalisation rate
Capitalisation rate OUTCOMES > No standalone Bunnings Warehouse transactions in FY2023 For personal use only > Bunnings Collingwood sold in July 2023 - details not disclosed 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% Feb-17 Jul-17 Dec-17 May-18 Oct-18 Mar-19 Aug-19 Feb-20 Jul-20 Dec-20 May-21 O
Slide 17: Revaluations June 2023
Revaluations JUNE 2023 For personal use only > June 2023 weighted average Revaluations Cap No. of Rental Value capitalisation rate 5.38 per cent by state rate properties $m/annum2 ($m) (Jun 2022: 5.04 per cent 30 June 2023 (%) Dec 2022: 5.05 per cent) NSW/ACT 18 37.5 5.35 708.5 – 12 independent valu
Slide 18: Independent revaluations June 2023
Independent revaluations JUNE 2023 For personal use only Dec 2022 Dec 2022 Jun 2023 Jun 2023 Cap rate Valuation Jun 2023 Property State Cap Rate Valuation Cap Rate Valuation movement movement Term Certain (%) ($m) (%) ($m) (%) ($m) (years) Hoxton Park NSW 5.75 75.5 6.00 73.0 0.25 (2.5) 8.9 Villawood
Slide 19: Core portfolio
Core portfolio For personal use only WOLLONGONG, NSW 19 CORE PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 20: Core portfolio summary
Core portfolio SUMMARY For personal use only 3.3 ha 65 3.6 years average land properties portfolio WALE area 65.5% 14,107 m2 83% upgrade average lettable metro located properties or area properties occupied <15yrs 5.24% weighted average cap rate 20 CORE PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 21: Weighted average lease expiry profile
Weighted average lease expiry PROFILE 35% For personal use only 30% 25% % of Rental Income 20% 15% 10% 5% 0% FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 Beyond Showrooms BWH >15 years occupancy BWH <15 yrs occupancy or upgrades 21 CORE PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 22: Bunnings lease expiries: next three years
Bunnings lease expiries NEXT THREE YEARS Options Rent Property Lease expiry Comments (years) ($’000pa) For personal use only Southport Nov 2023 10 1,953 Bunnings exercised its 10-year option in Jul 2023 Tuggeranong Nov 2023 10 2,036 Notification required by Aug 2023 Cannon Hill Mar 2024 10 2,923 Not
Slide 23: Bunnings lease expiries: next three years (continued)
Bunnings lease expiries NEXT THREE YEARS (CONTINUED) Options Rent Property Lease expiry Comments (years) ($’000pa) For personal use only Ellenbrook Dec 2025 5x6 2,238 First option, notification required by Jun 2025 Townsville North Dec 2025 5x6 2,016 First option, notification required by Jun 2025 S
Slide 24: Bunnings upgrades: Lismore, NSW
Bunnings upgrades LISMORE, NSW For personal use only > Upgrade cost of $14.0 million at a funding rate of 4.0 per cent – Land acquisition $1.5 million (acquired in October 2022) – Development $12.5 million > Upgrade increases the total retail area by 2,891 square metres > Anticipated completion earl
Slide 25: Bunnings upgrades: Coburg, VIC
Bunnings upgrades COBURG, VIC For personal use only > Upgrade cost of $3.5 million at a funding rate of 4.0 per cent > Upgrade increases the total retail area by 918 square metres > Anticipated completion August 2023 > On completion, new 10-year lease with 6 x 5-year options exercisable by Bunnings
Slide 26: Bunnings upgrades: Dubbo, NSW
Bunnings upgrades DUBBO, NSW For personal use only > Upgrade cost of $14.0 million at a funding rate of 4.0 per cent – Land acquisition $0.4 million – Development $13.6 million > Upgrade increases the total retail area by 4,673 square metres > Anticipated completion late 2024 > On completion, new 10
Slide 27: Alternative use properties
Alternative use properties For personal use only MANDURAH, WA 27 ALTERNATIVE USE PROPERTIES | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 28: Alternative use properties progress
Alternative use properties PROGRESS For personal use only Property Lease expiry Comments Port Kennedy Expired Development approval for large format retail centre with leasing progressing Belmont North Expired Numerous options being considered for redevelopment of site Development approval for large
Slide 29: Capital management
Capital management For personal use only BUNNINGS SOUTHPORT, QLD 29 CAPITAL MANAGEMENT | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 30: Debt facilities
Debt facilities > Average borrowings for the year $473.0 million (up 1.7 per cent on prior corresponding period) – 3.6 per cent per annum weighted average cost of debt after hedging (2022: 3.0 per cent per For personal use only annum) – Borrowing costs for the year $16.7 million (up 21.3 per cent on
Slide 31: Debt duration
Debt duration DEBT MATURITY PROFILE AS AT 30 JUNE 2023 For personal use only 400 139.0 300 106.0 Volume (A$M) 200 150.0 100 110.0 150.0 0 FY FY FY FY FY 24 25 26 27 28 Bonds Drawn bank facilities Undrawn bank facilities 31 CAPITAL MANAGEMENT | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 32: Outlook
Outlook For personal use only BUNNINGS CAROLINE SPRINGS, VIC 32 OUTLOOK | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 33: Outlook June 2023
Outlook JUNE 2023 For personal use only Operating environment Portfolio > The Trust remains well positioned operationally > Primary focus for the current financial year is on with 85 per cent of rental income from the leasing vacancies in the portfolio, progressing Wesfarmers Group, three per cent f
Slide 34: Questions?
Questions? For personal use only BUNNINGS MINCHINBURY, NSW 34 QUESTIONS | FULL-YEAR RESULTS TO 30 JUNE 2023
Slide 35: Total unitholder return since 1998
Total unitholder return since 19981 BWP VS. ALL ORDINARIES & ASX 200 PROPERTY ACCUMULATION INDEX2 For personal use only TOTAL UNITHOLDER RETURN1 ASX ALL ORDINARIES ACCUMULATION INDEX ASX 200 PROPERTY ACCUMULATION INDEX2 Source: Bloomberg as at 30 June 2023 1 Assumes 100 per cent distribution investm
Slide 36: Further information
Further information For personal use only Responsible entity: BWP Management Limited Tel: +61 8 9327 4356 Email: investorrelations@bwptrust.com.au 36 FURTHER INFORMATION | FULL-YEAR RESULTS TO 30 JUNE 2023