Bwp Trust · ASX:BWP
Bwp Trust — Bunnings Warehouse Property Trust — H1 FY2010 Earnings Presentation
22 slides from Bwp Trust's earnings presentation, Feb 10, 2010
Slide 1: Bunnings Warehouse Property Trust Half-year results 2009/10
For personal use only BUNNINGS WAREHOUSE PROPERTY TRUST Half-year results 2009/10 February 2010
Slide 2: Presentation outline
Presentation outline For personal use only • Overview Grant Gernhoefer • Results General Manager Bunnings Property Management Limited • Portfolio • Capital management Andrew Ross Portfolio Manager Bunnings Property Management Limited • Outlook • Structure 2
Slide 3: Overview
Overview For personal use only • BWP in good shape and looking for opportunities BWP unit price vs S&P/ASX 200 A-REIT index & All Ordinaries index – BWP outperformed the % benchmark S&P/ASX 200 A-REIT 40 All Ords 33.43 index for unit price and total 30 returns for 12 months ended 31 20 16.73 Dec 09
Slide 4: Results – total returns
Results – total returns For personal use only BWP total returns compared to market – periods ended 31 December 2009 50.0% 40.0% 30.0% BWP 20.0% BWP 10.0% BWP BWP 0.0% -10.0% -20.0% -30.0% One Year Three Years Five Years Ten Years BWP ASX All Ordinaries Acc. Index UBS Retail 200 S&P/ASX 200 Prop Acc.
Slide 5: Results – performance vs PCP
Results – performance vs PCP For personal use only Half-year 2010 Previous corresponding period Revenue $39.0 million 11.0% Net profit/(loss) including revaluations $41.1 million ($23.4) million Distributable profit (excluding revaluations) $25.3 million 23.4% Half-year distribution 6.10 cpu 9.0% To
Slide 6: Results – performance: monthly
Results – performance: 6 monthly For personal use only 6 months to 6 months to 6 months to Dec 09 Jun 09 Dec 08 Revenue $39.0m $38.1m $35.1m Net profit/(loss) including revaluations $41.1m $11.7m ($23.4m) Unrealised (gain)/loss in fair value of investment properties ($15.9m) $8.3m $43.9m Distributab
Slide 7: Results - distributions
Results - distributions For personal use only 14 12 10 6.56 6.72 6.39 4.87 6.17 cents per unit 5.87 8 5.35 4.86 4.97 4.68 6 4.70 4 6.22 6.42 6.55 6.70 6.10 5.15 5.51 5.79 4.70 4.50 4.80 2 2.50 0 FY99 1 FY00 FY01 2 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 3 FY10 Final DPU Interim DPU 1 BWP commenced t
Slide 8: Portfolio – geographic spread
Portfolio – geographic spread For personal use only 53 Bunnings Warehouses 1 Bunnings distribution centre 1 Bunnings Warehouse development site 4 Industrial properties 2 Bulky goods showrooms* 9 * showrooms at Bayswater are on the same site as the Bayswater BWH 10 1 2 1 1 1 1 13 19 1 1 1 8
Slide 9: Portfolio - WALE
Portfolio - WALE For personal use only 5.9 year weighted average lease expiry (by rental income) Typical Bunnings Warehouse Property Trust lease features: – 15 years (plus 2 x 5 year options) – 5 yearly market rent reviews (majority uncapped) – annual CPI escalation – Wesfarmers covenant (BBB+ credi
Slide 10: Portfolio - revaluations
Portfolio - revaluations For personal use only • Stabilisation of cap rates – Consistent sales evidence (refer Appendix A for details): » 2HFY09 – 9 sales average 7.76% yield » 1HFY10 – 1 sale 7.50% yield – 18% of BWP portfolio independently valued – Independent valuations = 4bps cap rate compressio
Slide 11: Portfolio - rent reviews
Portfolio - rent reviews For personal use only Rent review type FY10 10 market rent reviews in FY10 First Second First Half 1 Second Half half half FY10 Thornleigh, NSW Fountain Gate, VIC CPI 34 14 48 Maitland, NSW Nunawading, VIC (+6.6%) Fixed 3 5 8 Hoppers Crossing, Bibra Lake, WA VIC Market 5 5 1
Slide 12: Portfolio – future revals and reviews
Portfolio – future revals and reviews For personal use only Future Bunnings Warehouse revaluations and market rent reviews FY10 FY11 FY12 FY13 FY14 Rent reviews 10 4 7 7 22 % of total 19% 8% 13% 13% 42% Revaluations 19 17 24 19 17 % of total 36% 32% 45% 36% 32% Refer Appendices B & C for outline of
Slide 13: Capital management
Capital management For personal use only • Balance sheet strength supported by: – low gearing - 19.2% at 31 Dec 09 (19.5% covenant gearing) – strong lease covenant in Bunnings/Wesfarmers – solid rental base with growth from CPI and programmed rent reviews – low level of committed capex • Maintaining
Slide 14: Capital management - debt facilities
Capital management - debt facilities For personal use only As at 31 December 09 Limit ($m) Drawn ($m)1 Expiry ANZ 100 25.5 31 Jul 2013 NAB 100 100.0 Evergreen2 CBA 100 32.5 14 Jan 2012 WBC 80 32.2 2 Jul 2012 380 190.2 1 amount drawn includes accrued interest of $0.4 million as at 31 December 2009 2
Slide 15: Capital management – interest rates
Capital management – interest rates For personal use only • Borrowing costs for half-year (incl. fees and margins): – $9.3m - down 12.4% on Dec 08 on lower borrowings – 6.35% of borrowing before hedging (Dec 08: 7.51%) – 9.22% of borrowings after hedging (Dec 08: 6.76%) • Effective rate impacted by:
Slide 16: Capital management – interest rates
Capital management – interest rates For personal use only Interest rate hedging: • $187.0m hedged (98%) • 3.03 years weighted average maturity, incl. delayed starts (2008: 3.15 years) Hedge book profile by half-year ending: Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Active swaps ($ millions) 1
Slide 17: Outlook
Outlook For personal use only • Growth capacity with debt funding secured for the medium term and $189.8m undrawn capacity • Focus on acquiring quality Bunnings Warehouses or other assets that provide similar characteristics • Drive growth from existing properties through upgrades and rent reviews •
Slide 18: Structure
Structure For personal use only Manager: Bunnings Property Management Limited Subsidiary of Wesfarmers Limited but…majority external directors • John Austin (Chairman); Leighton Properties (Chairman), MREEF, Ringmer Pacific, ex Jones Lang LaSalle • Peter Mansell; ThinkSmart, OZ Minerals • Peter John
Slide 19: Further information
Further information For personal use only Visit: www.bwptrust.com.au Responsible entity: Bunnings Property Management Limited Tel: (08) 9327 4356 Email: ggernhoefer@bwptrust.com.au The information provided in this presentation should be considered together with the financial statements for the perio
Slide 20: Appendix A: Sales evidence
Appendix A: Sales evidence For personal use only Sales pre 30 June 2009 Bunnings Warehouse Sale price $m Yield % Date Rothwell QLD 16.70 7.93 Mar 09 Nerang QLD 16.35 7.60 Jun 09 Campbelltown NSW 21.35 7.66 Jun 09 Nowra NSW 11.60 7.75 Jun 09 Mill Park VIC 16.45 7.75 Apr 09 Box Hill VIC 21.50 8.00 Jun
Slide 21: Appendix B: Valuations
Appendix B: Valuations For personal use only • Process – entire portfolio revalued every 6 months – independent valuations on a 3 year cycle for each property – balance of portfolio – directors’ valuation using recognised valuation methodology – directors’ valuations methodology reviewed by an indep
Slide 22: Appendix C: Market rent reviews
Appendix C: Market rent reviews For personal use only • Typical Bunnings Warehouse market rent review clause – assumes free and open market with vacant possession – has regard to the rent paid by Bunnings at other Bunnings Warehouses – has regard to the rental value of other properties of a similar
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