Slide 1: Full-Year Results to 30 June 2021
FULL-YEAR RESULTS For personal use only TO 30 JUNE 2021 August 2021
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: Presentation Outline
PRESENTATION OUTLINE For personal use only Michael Wedgwood Summary slides 4-6 Managing Director Results BWP Management Limited slides 7-10 Portfolio slides 11-17 Andrew Ross Core portfolio slides 18-23 Head of Property Divestments BWP Management Limited slides 24-26 Alternative use properties slide
Slide 4: Summary
SUMMARY For personal use only SUMMARY | FULL-YEAR RESULTS TO 30 JUNE 2021 4
Slide 5: 2021 Full-Year Results at a Glance
2021 FULL-YEAR RESULTS AT A GLANCE For personal use only $152.2m ▼ $117.5m 18.29cpu $3.29 ▲ 15.1% pa Total income 2.3%1 Dist. Profit Ordinary distribution NTA 7.5%1 10 yr total return PORTFOLIO PORTFOLIO CAPITAL PERFORMANCE MANAGEMENT MANAGEMENT New leasing arrangements in place for A- S&P rating/ 1
Slide 6: Climate Risk and Sustainability Actions
CLIMATE RISK AND SUSTAINABILITY ACTIONS For personal use only > Completed review of boundaries for Scope 1 and 2 emissions, taking into account Wallsend, NSW structure and operational control > Operational carbon emissions of 177 tonnes of C02 for FY2021. Purchasing Australian Carbon Credit Units (“
Slide 7: Results
RESULTS For personal use only RESULTS | FULL-YEAR RESULTS TO 30 JUNE 2021 7
Slide 8: 2021 Financial Performance vs PCP
2021 FINANCIAL PERFORMANCE VS PCP For personal use only FY21 PCP1 Total revenue ($m) 152.2 155.8 Management expense ratio (%) 0.63 0.64 Other expenses ($m) 8.6 8.8 Net profit2 (excluding revaluations) ($m) 114.0 117.1 Number of units on issue (m) 642.4 642.4 Full-year ordinary distribution (cents pe
Slide 9: 2021 Financial Performance Six Monthly
2021 FINANCIAL PERFORMANCE SIX MONTHLY For personal use only 6 months 6 months 6 months to Jun 2021 to Dec 2020 to Jun 2020 Total revenue ($m) 76.1 76.1 79.5 Management expense ratio1 (%) 0.63 0.64 0.64 Other expenses ($m) 4.3 4.3 4.6 Distributable amount ($m) 59.6 57.9 59.5 Property revaluation gai
Slide 10: 2021 Financial Performance Five Year Performance
2021 FINANCIAL PERFORMANCE FIVE YEAR PERFORMANCE For personal use only FY2021 FY2020 FY2019 FY2018 FY2017 Revenue ($m) 152.2 155.8 156.3 153.4 152.5 Distributable profit1 ($m) 117.5 117.5 116.4 114.4 112.5 Total assets ($m) 2,674.6 2,552.6 2,382.3 2,369.5 2,312.8 Borrowings ($m) 474.7 503.2 412.7 45
Slide 11: Portfolio
PORTFOLIO For personal use only PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2021 11
Slide 12: Bunnings Market Rent Review Outcomes
BUNNINGS MARKET RENT REVIEW OUTCOMES For personal use only Passing rent Reviewed rent Variance Effective Property Location ($pa) ($pa) (%) date > Annual like-for-like rental Wollongong, NSW1,2 1,469,571 1,405,000 (4.4) 9-Feb-18 growth across portfolio Villawood, NSW1,3 1,738,610 1,827,000 5.1 14-May
Slide 13: Rent Reviews FY2021
RENT REVIEWS FY2021 For personal use only > Two market rent reviews First-half Second-half % of Rental due during the 12 months Income1 to 30 June 2020 and 11 CPI 18 16 38 due during the 12 months Fixed 26 15 42 to 30 June 2021 are Market 10 6 20 being negotiated or Total 54 37 100 determined by 1 B
Slide 14: Like-for-Like Rental Growth
LIKE-FOR-LIKE RENTAL GROWTH FY2021 For personal use only Average increase 4% Market 0.5%1 43% Fixed 3.0% 1.6% like-for-like rental growth 53% CPI 0.5% Year ended 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 30 June (%) Rental growth2 1.6 2.13 2.3 2.5 2.1 2.4 2.9 4.0 2.1 4.0 CPI Growth4 0.5 1.6
Slide 15: Capitalisation Rate Trends
CAPITALISATION RATE TRENDS > Four Bunnings Warehouse transactions in the last six months, the most recent on a For personal use only cap rate of 4.2 per cent 10.00% 9.00% 8.00% 7.00% Bunnings Portfolio Acquisitions by BWP 6.00% 5.00% 4.00% 3.00% May- Dec- Jun- Dec- Jul- Jan- Jul- Feb- Aug- Feb- Sep-
Slide 16: Revaluations June 2021
REVALUATIONS JUNE 2021 For personal use only > June 2021 weighted average Revaluations capitalisation rate 5.65 per cent No. of Rental Cap rate Value by state (Dec 2020: 5.84 per cent) properties $m/annum2 (%) ($m) 30 June 2021 – Eight independent valuations (11 per cent of BWP portfolio value), NSW
Slide 17: Independent Revaluations June 2021
INDEPENDENT REVALUATIONS JUNE 2021 For personal use only Dec 2020 Dec 2020 Jun 2021 Jun 2021 Cap rate Valuation Jun 2021 Property State Cap Rate Valuation Cap Rate Valuation movement movement Term Certain (%) ($m) (%) ($m) (%) ($m) (years) Lismore NSW 5.50 26.7 5.50 26.5 - (0.2) 6.2 Wallsend NSW 5.5
Slide 18: Core Portfolio
CORE PORTFOLIO For personal use only COR E P OR T FOLIO | F U LL- YEA R R E S U LT S T O 3 0 J U N E 2 0 2 1 18
Slide 19: Core Portfolio Summary
CORE PORTFOLIO SUMMARY For personal use only 64 4.4 years 3.3 ha properties portfolio WALE average land area 71% 14,240 m2 84% upgrade average lettable metro located properties or area properties occupied <12yrs 5.50% weighted average cap rate COR E P OR T FOLIO | F U LL- YEA R R E S U LT S T O 3 0
Slide 20: Weighted Average Lease Expiry Profile
WEIGHTED AVERAGE LEASE EXPIRY PROFILE For personal use only 30% 25% 20% % of Rental Income 15% 10% 5% 0% FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 Beyond Showrooms BWH >12 years occupancy BWH <12 yrs occupancy or upgrades COR E P OR T FOLIO | F U LL- YEA R R E S U LT S T O 3 0 J U N E 2 0 2
Slide 21: Bunnings Lease Expiries Next Three Years
BUNNINGS LEASE EXPIRIES NEXT THREE YEARS For personal use only Rent Property Lease expiry Options Comments ($’000pa) Geraldton Dec 2021 2 x 5 yrs 1,350 Notification required by Sep 2021 Mornington Dec 2021 2 x 5 yrs 1,812 Notification required by Sep 2021 Frankston Dec 2021 2 x 5 yrs 2,156 Notificat
Slide 22: Croydon Upgrade Completed
CROYDON UPGRADE COMPLETED For personal use only > Upgrade cost of $4.0 million at a funding rate of 5.5 per cent > Fair value as at 30 June 2021, $46.8 million, an increase of $8.7 million from December 2020 > Upgrade increases the total retail area by 2,190 square metres incorporating an expansion
Slide 23: Port Melbourne Upgrade Completed
PORT MELBOURNE UPGRADE COMPLETED For personal use only > Upgrade cost of $6.6 million at a funding rate of 5.5 per cent > Fair value as at 30 June 2021 $67.5 million, an increase of $12.5 million from December 2020 > Upgrade increases the total retail area by 2,303 square metres incorporating an exp
Slide 24: Divestments
DIVESTMENTS For personal use only COR E P OR T FOLIO | F U LL- YEA R R E S U LT S T O 3 0 J U N E 2 0 2 1 24
Slide 25: Underwood, QLD Divestment
UNDERWOOD, QLD DIVESTMENT For personal use only > Sold to a private owner occupier following a public expressions of interest campaign – settled May 2021 > Strong returns achieved as a Bunnings Warehouse (refer table below) > Bunnings relocated to a nearby site in 2018 > Pursued a number of re-devel
Slide 26: Mindarie, WA Divestment
MINDARIE, WA DIVESTMENT For personal use only > Sold to Fabcot for Woolworths anchored shopping centre – settled July 2021 > Strong returns achieved as a Bunnings Warehouse (refer table below) > Bunnings relocated to a nearby site in 2014 and has paid rent up until settlement in July 2021 > Pursued
Slide 27: Alternative Use Properties
ALTERNATIVE USE PROPERTIES For personal use only A LT E R N AT IVE U S E P R O P ERT I ES| F U LL- YEAR R E S ULT S T O 3 0 J U N E 2 0 2 1 27
Slide 28: Alternative Use Properties Update
ALTERNATIVE USE PROPERTIES UPDATE For personal use only Property Lease expiry1 Comments Non-binding agreement entered into for use as a film studio; finalising development options on Cairns Expired surplus land Morley Expired Leasing campaign underway for lifestyle/leisure redevelopment Site leased
Slide 29: Capital Management
CAPITAL MANAGEMENT For personal use only CA P I T A L M A N A GEMEN T | F U LL- Y EAR R E S U LT S T O 3 0 J U N E 2 0 2 1 29
Slide 30: Debt Facilities
DEBT FACILITIES > Average borrowings for the year $477.1 million (up 3.3 per cent on prior corresponding period) For personal use only – 3.1 per cent per annum weighted average cost of debt after hedging (2020: 3.4 per cent per annum) – Borrowing costs for the year $15.0 million (down 3.6 per cent o
Slide 31: Debt Duration
DEBT DURATION REFINANCED DEBT MATURITY PROFILE For personal use only > The graph below shows the debt profile for the Trust, on the basis of the delayed start SMBC facility (see previous slide) being drawn down to repay the $110 million MTN maturing in May 2022 200 Volume (A$M) 150.0 79.5 100 54.4 1
Slide 32: Interest Rate Hedging
INTEREST RATE HEDGING For personal use only Hedge book profile by Jun 2021 Dec 2021 Jun 2022 half-year ending Active swaps ($m) 70 40 - Swap rates (%) Maximum 2.60 2.60 - Minimum 2.39 2.60 - Weighted average1 2.51 2.60 - > Including fixed rate corporate bonds: – $430 million hedged at 1.462 per cent
Slide 33: Outlook
OUTLOOK For personal use only OUTLOOK | FULL-YEAR RESULTS TO 30 JUNE 2021 33
Slide 34: Outlook
OUTLOOK For personal use only Operating environment Portfolio > The Trust remains well positioned operationally > Primary focus for the remainder of the financial with the significant majority of rental income from year is on leasing vacancies in the portfolio, Bunnings and other national large form
Slide 35: Questions?
For personal use only QUESTIONS? QUESTIONS | FULL-YEAR RESULTS TO 30 JUNE 2021 35
Slide 36: Further Information
For personal use only FURTHER INFORMATION Responsible entity: BWP Management Limited Tel: +61 8 9327 4356 Email: investorrelations@bwptrust.com.au FURTHER INFORMATION | FULL-YEAR RESULTS TO 30 JUNE 2021 36