Bwp Trust · ASX:BWP
Bwp Trust — H1 FY2022 Earnings Presentation
26 slides from Bwp Trust's earnings presentation, Feb 9, 2022
Slide 1: 2021/22 Half-Year Results to 31 December 2021
2021/22 HALF-YEAR For personal use only RESULTS TO 3 1 D E C E M B E R 2 0 2 1 Investor Briefing Presentation 9 February 2022
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 Summary slides 4-5 Michael Wedgwood Results Managing Director slides 6-7 BWP Management Limited Portfolio slides 8-12 Core portfolio Andrew Ross slides 13-17 Head of Property Alternative use properties slides 18-19 BWP Management Limited Capital management
Slide 4: Summary
SUMMARY For personal use only SUMMARY | HALF-YEAR RESULTS TO 31 DECEMBER 2021 4
Slide 5: 2021/22 Half-Year Results at a Glance
2021/22 HALF-YEAR RESULTS AT A GLANCE For personal use only $75.9m ▼ $57.9m 9.02cpu $3.75 ▲ 15.3% pa Total income 0.3%1 Dist. amount Ordinary distribution NTA 17.2%1 10 yr total return PORTFOLIO PORTFOLIO CAPITAL PERFORMANCE MANAGEMENT MANAGEMENT 2.2% $12.8m A- S&P rating/ like-for-like rental growt
Slide 6: Results
RESULTS For personal use only RESULTS | HALF-YEAR RESULTS TO 31 DECEMBER 2021 6
Slide 7: Financial Performance
FINANCIAL PERFORMANCE SIX MONTHLY For personal use only 6 months 6 months to Dec 2021 to Dec 2020 Total revenue ($m) 75.9 76.1 Management expense ratio1 (%) 0.63 0.64 Other expenses ($m) 4.3 4.3 Distributable amount ($m) 57.9 57.9 Property net revaluation gains2 ($m) 291.8 87.1 Net profit including
Slide 8: Portfolio
PORTFOLIO For personal use only PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2021 8
Slide 9: Bunnings Market Rent Review Outcomes
BUNNINGS MARKET RENT REVIEW OUTCOMES For personal use only > Annual like-for-like rental growth across portfolio 2.2 per cent > Annualised All Groups CPI (weighted average of 8 cities) – December 2020 – 0.9 per cent – March 2021 – 1.1 per cent – June 2021 – 3.8 per cent – September 2021 – 3.0 per ce
Slide 10: Capitalisation Rate Trends
CAPITALISATION RATE TRENDS For personal use only > Four Bunnings Warehouse transactions in the last six months, the most recent a regional store on a cap rate of 4.0 per cent Location Transaction Month Cap rate (%) Munno Para West, SA Aug-21 4.25 Kempsey, NSW Sep-21 4.19 Delacombe, VIC Oct-21 4.15 H
Slide 11: Revaluations December 2021
REVALUATIONS DECEMBER 2021 For personal use only > December 2021 weighted average Revaluations capitalisation rate 5.11 per cent No. of Rental Cap rate Value by state (Jun 2021: 5.65 per cent) properties $m/annum2 (%) ($m) 31 Dec 2021 – 10 independent valuations (14 per cent of BWP portfolio value),
Slide 12: Independent Revaluations December 2021
INDEPENDENT REVALUATIONS DECEMBER 2021 For personal use only Jun 2021 Jun 2021 Dec 2021 Dec 2021 Cap rate Valuation Dec 2021 Property State Cap Rate Valuation Cap Rate Valuation movement movement Term Certain (%) ($m) (%) ($m) (%) ($m) (years) Tuggeranong ACT 5.50 33.5 4.75 40.0 (0.75) 6.5 1.9 Belmo
Slide 13: Core Portfolio
CORE PORTFOLIO For personal use only CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2021 13
Slide 14: Core Portfolio Summary
CORE PORTFOLIO SUMMARY For personal use only 65 4.4 years 3.2 ha properties portfolio WALE average land area 67% 14,188 m2 83% upgrade average lettable metro located properties or area properties occupied <12yrs 5.0% weighted average cap rate CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2021 14
Slide 15: Weighted Average Lease Expiry Profile
WEIGHTED AVERAGE LEASE EXPIRY PROFILE For personal use only 30% 25% 20% % of Rental Income 15% 10% 5% 0% FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Beyond Showrooms BWH >12 years occupancy BWH <12 yrs occupancy or upgrades CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2021 15
Slide 16: Bunnings Lease Expiries Next Three Years
BUNNINGS LEASE EXPIRIES NEXT THREE YEARS For personal use only > Five year options exercised for Geraldton (WA), Mornington (VIC), Frankston (VIC), Gladstone (QLD), Greenacre (NSW) and Craigieburn (VIC) Property Lease expiry Options Rent ($’000pa) Comments Scoresby May 2022 2 x 5 yrs 2,008 Notificat
Slide 17: Bunnings Upgrade Lismore, New South Wales
BUNNINGS UPGRADE LISMORE, NEW SOUTH WALES For personal use only > Upgrade increases the total retail area by 2,891 square metres > Anticipated completion mid-2023 > On completion, a new 10 year lease with 6 x 5 year options exercisable by Bunnings – Annual CPI reviews capped at 2.5 per cent, market
Slide 18: Alternative Use Properties
ALTERNATIVE USE PROPERTIES For personal use only ALTERNATIVE USE PROPERTIES | HALF-YEAR RESULTS TO 31 DECEMBER 2021 18
Slide 19: Alternative Use Properties Update
ALTERNATIVE USE PROPERTIES UPDATE For personal use only Property Lease expiry1 Comments Temporary lease to Australian Electoral Commission expires in June 2022; leasing campaign Morley Expired underway for lifestyle/leisure redevelopment, other options also being explored Site leased up to June 2023
Slide 20: Capital Management
CAPITAL MANAGEMENT For personal use only CAPITAL MANAGEMENT | HALF-YEAR RESULTS TO 31 DECEMBER 2021 20
Slide 21: Debt Facilities
DEBT FACILITIES > Average borrowings for the half-year $466.2 million (down 0.3 per cent on prior corresponding period) For personal use only – 3.2 per cent per annum weighted average cost of debt after hedging (2020: 3.2 per cent per annum) – Borrowing costs for the half-year $7.5 million (in line
Slide 22: Debt Duration: Refinanced Debt Maturity Profile
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 forward start SMBC facility being drawn down to repay the $110 million MTN maturing in May 2022 200 Volume (A$M) 150.0 86.5 100 66.6 110.0 100.0 48.5 43.4
Slide 23: Outlook
OUTLOOK For personal use only OUTLOOK | HALF-YEAR RESULTS TO 31 DECEMBER 2021 23
Slide 24: Outlook
OUTLOOK For personal use only Operating environment Portfolio > The Trust is well positioned operationally with 85 > Primary focus for the remainder of the financial per cent of rental income from Bunnings and a year is on filling any vacancies in the portfolio, further 14 per cent rent from other n
Slide 25: Questions?
For personal use only QUESTIONS? QUESTIONS | HALF-YEAR RESULTS TO 31 DECEMBER 2021 25
Slide 26: 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 | HALF-YEAR RESULTS TO 31 DECEMBER 2021 26