Bwp Trust · ASX:BWP
Bwp Trust — H1 FY2021 Earnings Presentation
30 slides from Bwp Trust's earnings presentation, Feb 3, 2021
Slide 1: Half-Year Results to 31 December 2020
For personal use only H ALF -YE AR RE S ULTS TO 31 DE CE MB E R 2020 FEBRUARY 2021
Slide 2: Important Notice
I M P O RTA N T For personal use only NOTICE 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
Slide 3: Presentation Outline
P R E S E N TAT I O N O U T L I N E For personal use only Michael Wedgwood > Summary Managing Director BWP Management Limited > Results Andrew Ross > Portfolio Head of Property BWP Management Limited > Core portfolio David Hawkins > Alternative use properties Finance Manager BWP Management Limited >
Slide 4: Summary
SUMMARY For personal use only Caroline Springs, QLD SUMMARY | HALF-YEAR RESULTS TO 31 DECEMBER 2020 4
Slide 5: Half-Year Results at a Glance
For personal use only 2 0 2 0 / 2 1 H A L F -Y E A R R E S U LT S AT A G L A N C E $76.1m $57.9m 9.02 cpu $3.20 ⇧ 16.3% pa Total revenue1 Dist. Profit1 Ordinary distribution1 NTA 5.3%2 10 yr total return PORTFOLIO PORTFOLIO CAPITAL PERFORMANCE MANAGEMENT MANAGEMENT 2.0% 99.0% A- S&P rating/ like-for
Slide 6: Results
R E S U LT S R E S U LT S For personal use only Artarmon, NSW RESULTS | HALF-YEAR RESULTS TO 31 DECEMBER 2020 6
Slide 7: Financial Performance Monthly
F I N A N C I A L P E R F O R M A N C E 6 M O N T H LY For personal use only 6 months to Dec 20 6 months to Dec 19 Total revenue $76.1m $76.2m Management expense ratio1 0.64% 0.63% Other expenses $4.3m $4.2m Net profit (excluding revaluations) $56.9m $57.2m Property net revaluation gains $87.1m2 $78
Slide 8: Portfolio
P O RT F O L I O For personal use only Rydalmere, NSW PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2020 8
Slide 9: Bunnings Rent Review Outcomes
BUNNINGS RENT REVIEW For personal use only OUTCOMES > Annual like-for-like rental growth across portfolio 2.0% > Eight Bunnings Passing Reviewed Variance Effective Property Location market rent rent ($pa) rent ($pa) (%) date reviews were Wollongong, NSW1,2 1,469,571 1,405,000 (4.4) 9-Feb-18 resolved
Slide 10: Capitalisation Rate Trends
C A P I TA L I S AT I O N R AT E T R E N D S For personal use only > New Bunnings Warehouse store yields continue to tighten with the most recent transaction recorded at 4.2% 10.00% 9.00% 8.00% 7.00% Bunnings Portfolio Acquisitions by BWP 6.00% 5.00% 4.00% 3.00% Jun-10 Dec-10 Jul-11 Jan-12 Aug-12 Ma
Slide 11: December Revaluations
D E C E M B E R 2 0 2 0 R E VA L U AT I O N S For personal use only > December 2020 weighted average capitalisation rate 5.84 per cent (June 2020: 6.08 per cent) – 11 independent valuations (15 per cent of BWP portfolio value), average cap rate 5.66 per cent – 64 internal valuations, average cap rat
Slide 12: December 2020 Independent Revaluations
DECEMBER 2020 For personal use only I N D E P E N D E N T R E VA L U AT I O N S Dec 2020 Dec 2020 Jun 2020 Jun 2020 Cap rate Valuation Dec 2020 Property State Cap Rate Valuation Cap Rate Valuation movement movement Term Certain (%) ($m) (%) ($m) (%) ($m) (years) Greenacre NSW 5.50 52.1 6.00 47.8 (0.
Slide 13: Core Portfolio
CORE For personal use only P O RT F O L I O Craigieburn, VIC CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2020 13
Slide 14: Core Portfolio Summary
C O R E P O RT F O L I O For personal use only SUMMARY 64 4.5 years properties portfolio WALE 3.3 ha 14,148m2 average land average lettable area area 72% 84% upgrade metro located properties or properties occupied <12yrs 5.61% weighted average cap rate CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMB
Slide 15: Weighted Average Lease Expiry Profile
W E I G H T E D AV E R A G E L E A S E E X P I R Y For personal use only PROFILE 30% 25% 20% % of Rental Income 15% 10% 5% 0% CY21 CY22 CY23 CY24 CY25 CY26 CY27 CY28 CY29 CY30 Beyond Showrooms BWH >12 years occupancy BWH <12 yrs occupancy or upgrades CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER
Slide 16: Lease Expiries Next Three Years
LEASE EXPIRIES NEXT THREE YEARS For personal use only > Five year options exercised for Belmont (WA), Caroline Springs (VIC), Cockburn (WA), Fairfield Waters (QLD), Mt Gravatt (QLD), Pakenham (VIC), Smithfield (QLD) and Wagga Wagga (NSW) during the half-year > 10 year option exercised for Broadmeado
Slide 17: Alternative Use Properties
A LT E R N AT I V E For personal use only U S E P R O P E RT I E S Cairns, QLD ALTERNATIVE USE PROPERTIES | HALF-YEAR RESULTS TO 31 DECEMBER 2020 17
Slide 18: Underwood Divestment
UNDERWOOD DIVESTMENT For personal use only > Strong returns achieved to date as a Bunnings Warehouse (refer table below) > Bunnings relocated to a nearby site in 2018 > Pursued a number of re-development options, including for retail, large format retail, medical, self-storage, industrial and last m
Slide 19: Port Macquarie Re-purposing
P O RT M A C Q U A R I E R E - P U R P O S I N G For personal use only Financial performance to end of Bunnings lease > Bunnings lease expired in November 2019 Purchase date November 2003 > Capital works completed in March 2020 Purchase price $7.5 million > 100% leased to Amart Furniture, Body Fit G
Slide 20: Morley Re-purposing
MORLEY RE-PURPOSING For personal use only > Strong returns achieved to date as a Bunnings Warehouse (refer table below) > Bunnings lease expired in July 2020 > Site previously re-zoned to allow for mixed use development > Numerous re-purposing opportunities being considered including medical, large
Slide 21: Midland Re-purposing
MIDLAND RE-PURPOSING For personal use only > Strong returns achieved to date as a Bunnings Warehouse (refer table below) > Bunnings relocated to a nearby site in December 2020 > Lease expiry in September 2021 > In discussions with several operators to lease site from October 2021 Financial performan
Slide 22: Alternative Use Properties Update
A LT E R N AT I V E U S E P R O P E RT I E S U P D AT E For personal use only Property Lease expiry1 Comments Short term lease to Queensland Government for a pop-up sports arena Cairns Expired Concept and feasibility finalised for multi-tenanted industrial development Belmont North Mar 2021 Consider
Slide 23: Capital Management
C A P I TA L For personal use only MANAGEMENT Villawood, NSW CAPITAL MANAGEMENT | HALF-YEAR RESULTS TO 31 DECEMBER 2020 23
Slide 24: Debt Facilities
D E BT FA C I L I T I E S For personal use only > Average borrowings for the half-year $467.8 million (up 6.6 per cent on prior corresponding period) – 3.2 per cent per annum weighted average cost of debt after hedging (2019: 3.5 per cent per annum) – Borrowing costs for the half-year $7.5 million (
Slide 25: Debt Duration
D E BT D U R AT I O N For personal use only Debt maturity profile as at 31 December 2020 300.0 84.4 200.0 Volume (A$M) 50.6 150.0 100.0 110.0 62.0 100.0 48.0 0.0 FY FY FY FY FY FY 21 22 23 24 25 26 Bonds Drawn bank facilities Undrawn bank facilities CAPITAL MANAGEMENT | HALF-YEAR RESULTS TO 31 DECEM
Slide 26: Interest Rate Hedging
I N T E R E S T R AT E H E D G I N G For personal use only Hedge book profile by Dec 2020 Jun 2021 Dec 2021 Jun 2022 half-year ending Active swaps ($m) 85 70 40 - Swap rates (%) Maximum 4.12 2.60 2.60 - Minimum 2.39 2.39 2.60 - Weighted average1 2.79 2.51 2.60 - > Including fixed rate corporate bond
Slide 27: Outlook
OUTLOOK For personal use only Browns Plains, QLD OUTLOOK | HALF-YEAR RESULTS TO 31 DECEMBER 2020 27
Slide 28: Outlook
OUTLOOK For personal use only Operating environment Portfolio > The Trust is well positioned in the current > Primary focus for the remainder of the COVID-19 environment with the significant financial year is on leasing vacancies in the majority of rental income from Bunnings and portfolio, progress
Slide 29: Questions?
For personal use only QUESTIONS? QUESTIONS | HALF-YEAR RESULTS TO 31 DECEMBER 2020 29
Slide 30: Further Information
For personal use only F U RT H E R I N F O R M AT I O N bwptrust.com.au Responsible entity: BWP Management Limited Tel: +61 8 9327 4356 Email: investorrelations@bwptrust.com.au FURTHER INFORMATION | HALF-YEAR RESULTS TO 31 DECEMBER 2020 30