Slide 1: Full-Year Results to 30 June 2022
For personal use only FULL-YEAR RESULTS TO 30 JUNE 2022 August 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 Michael Wedgwood slides 4-6 Managing Director Results BWP Management Limited slides 7-10 Portfolio slides 11-16 Andrew Ross Core portfolio slides 17-22 Head of Property Alternative use properties BWP Management Limited slides 23-24 Capital managemen
Slide 4: Summary
BUNNINGS MARIBYRNONG, VIC SUMMARY For personal use only 4 SUMMARY | FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 5: 2022 Full-Year Results at a Glance
2022 FULL-YEAR RESULTS AT A GLANCE For personal use only $153.3m ▲ $117.5m 18.29 cpu $3.87 ▲ 13.5% pa Total income 0.7%1 Dist. Amount Ordinary distribution NTA 17.6%1 10 yr total return PORTFOLIO PORTFOLIO CAPITAL PERFORMANCE MANAGEMENT MANAGEMENT 3.3% 14 A- S&P Rating like-for-like rental growth MR
Slide 6: Climate Risk and Sustainability Progress
CLIMATE RISK AND SUSTAINABILITY PROGRESS For personal use only > Net-zero Scope 2 emissions for year ended 30 June 2022 – Purchased green electricity for seven properties where the Trust is responsible for some electricity usage and reduced emissions to 120 tonnes CO2e (177 tonnes pcp) – Acquired 50
Slide 7: Results
OFFICEWORKS MENTONE, VIC RESULTS For personal use only 7 RESULTS | FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 8: 2022 Financial Performance vs PCP
2022 FINANCIAL PERFORMANCE VS PCP For personal use only FY22 PCP1 Total revenue ($m) 153.3 152.2 Management expense ratio2 (%) 0.64 0.63 Other expenses ($m) 8.7 8.6 Net profit3 (excluding revaluations) ($m) 114.7 114.0 Number of units on issue (m) 642.4 642.4 Full-year ordinary distribution (cents p
Slide 9: 2022 Financial Performance Six Monthly
2022 FINANCIAL PERFORMANCE SIX MONTHLY For personal use only 6 months 6 months 6 months to Jun 2022 to Dec 2021 to Jun 2021 Total revenue ($m) 77.4 75.9 76.1 Management expense ratio1 (%) 0.64 0.63 0.63 Other expenses ($m) 4.4 4.3 4.3 Distributable amount ($m) 59.6 57.9 59.6 Property revaluation gai
Slide 10: 2022 Financial Performance Five Year Performance
2022 FINANCIAL PERFORMANCE FIVE YEAR PERFORMANCE For personal use only FY22 FY21 FY20 FY19 FY18 Revenue ($m) 153.3 152.2 155.8 156.3 153.4 Distributable profit1 ($m) 117.5 117.5 117.5 116.4 114.4 Total assets ($m) 3,021.9 2,674.6 2,552.6 2,382.3 2,369.5 Borrowings ($m) 455.6 474.7 503.2 412.7 457.6
Slide 11: Portfolio
BUNNINGS GREENACRE, NSW PORTFOLIO For personal use only 11 PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 12: Bunnings Market Rent Review Outcomes
BUNNINGS MARKET RENT REVIEW OUTCOMES For personal use only > Annual like-for-like rental Property Location Passing Reviewed Variance Effective rent ($pa) rent ($pa) (%) date growth across the Fountain Gate, VIC1,2 1,760,103 1,770,000 0.6 1-Feb-20 portfolio of 3.3 per cent Nunawading, VIC1,2 2,493,48
Slide 13: Like-for-Like Rental Growth FY2022
LIKE-FOR-LIKE RENTAL GROWTH FY2022 For personal use only Average increase 4% Market 6.4%1 42% Fixed 3.1% 3.3% like-for-like rental growth 54% CPI 3.3% Year ended 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 30 June (%) Rental growth2 3.3 1.23 2.1 2.3 2.5 2.1 2.4 2.9 4.0 2.1 CPI Growth4 3.3 0.5
Slide 14: Capitalisation Rate Outcomes
CAPITALISATION RATE OUTCOMES For personal use only > Three Bunnings Warehouse transactions in the last six months, the most recent a regional store on a cap rate of 4.29 per cent 7.00% 6.50% 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec
Slide 15: Revaluations June 2022
REVALUATIONS JUNE 2022 For personal use only > June 2022 weighted average Revaluations capitalisation rate 5.04 per cent No. of Rental Cap rate Value by state (Dec 2021: 5.11 per cent) properties $m/annum2 (%) ($m) 30 June 2022 – 14 independent valuations (20 per cent of BWP portfolio value), NSW/AC
Slide 16: Independent Revaluations June 2022
INDEPENDENT REVALUATIONS JUNE 2022 For personal use only Dec 2021 Dec 2021 Jun 2022 Jun 2022 Cap rate Valuation Jun 2022 Property State Cap Rate Valuation Cap Rate Valuation movement movement Term Certain (%) ($m) (%) ($m) (%) ($m) (years) Albany WA 13.97 8.5 13.51 8.7 (0.46) 0.2 2.3 Arundel QLD 4.7
Slide 17: Core Portfolio
BUNNINGS VILLAWOOD, NSW CORE PORTFOLIO For personal use only 17 CORE PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 18: Core Portfolio Summary
CORE PORTFOLIO SUMMARY For personal use only 3.2 ha 65 4.0 years average land properties portfolio WALE area 67.2% 13,939 m2 83% upgrade average lettable metro located properties or area properties occupied <12yrs 4.91% weighted average cap rate 18 CORE PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 19: Weighted Average Lease Expiry Profile
WEIGHTED AVERAGE LEASE EXPIRY PROFILE For personal use only 30% 25% 20% % of Rental Income 15% 10% 5% 0% FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Beyond Showrooms BWH >12 years occupancy BWH <12 yrs occupancy or upgrades 19 CORE PORTFOLIO | FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 20: Bunnings Lease Expiries Next Three Years
BUNNINGS LEASE EXPIRIES NEXT THREE YEARS For personal use only Rent Property Lease expiry Options Comments ($’000pa) Artarmon Feb 2023 3 x 5 yrs 1,760 Notification required by Nov 2022 Belrose Feb 2023 3 x 5 yrs 2,174 Notification required by Nov 2022 Wollongong Feb 2023 2 x 5 yrs 1,501 Notification
Slide 21: Bunnings Upgrade Lismore, New South Wales
BUNNINGS UPGRADE LISMORE, NEW SOUTH WALES For personal use only > Upgrade cost of $12.8 million at a funding rate of 4.0 per cent – Land acquisition $1.5 million – Development $11.3 million > Upgrade increases the total retail area by 2,891 square metres > Anticipated completion mid-2023 > On comple
Slide 22: Bunnings Upgrade Coburg, Victoria
BUNNINGS UPGRADE COBURG, VICTORIA For personal use only > Upgrade cost increase of $1.0 million, now $3.5 million at a funding rate of 4.0 per cent > Upgrade increases the total retail area by 918 square metres > Anticipated completion early 2023 > On completion, new 10-year lease with 6 x 5 year op
Slide 23: Alternative Use Properties
IDOM AUTOMOTIVE GROUP MIDLAND, WA ALTERNATIVE USE PROPERTIES For personal use only 23 ALTERNATIVE USE PROPERTIES| FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 24: Alternative Use Properties Update
ALTERNATIVE USE PROPERTIES UPDATE For personal use only Property Lease expiry Comments Leasing campaign underway for large format retail redevelopment – 81 per cent leased or Port Kennedy Expired committed to lease Site leased up to August 2022 for mass vaccination hub; property recently rezoned to
Slide 25: Capital Management
BUNNINGS RYDALMERE, NSW CAPITAL MANAGEMENT For personal use only 25 CAPITAL MANAGEMENT| FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 26: Debt Facilities
DEBT FACILITIES > Average borrowings for the year $465.0 million (down 2.5 per cent on prior corresponding period) For personal use only – 3.0 per cent per annum weighted average cost of debt after hedging (2021: 3.1 per cent per annum) – Borrowing costs for the year $13.8 million (down 7.9 per cent
Slide 27: Debt Duration
DEBT DURATION DEBT MATURITY PROFILE AS AT For personal use only 30 JUNE 2022 400 Volume (A$M) 152.3 300 92.7 200 150.0 100 110.0 100.0 0 FY FY FY FY FY FY 23 24 25 26 27 28 Bonds Drawn bank facilities Undrawn bank facilities 27 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
Slide 28: Outlook
BUNNINGS WEST IPSWICH, QLD OUTLOOK For personal use only 28 OUTLOOK | FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 29: Outlook
OUTLOOK For personal use only Operating environment Portfolio > The Trust remains well positioned operationally > Primary focus for the current financial year is on with the significant majority of rental income from leasing vacancies in the portfolio, progressing Bunnings and other national large f
Slide 30: Questions?
QUESTIONS? For personal use only 30 QUESTIONS | FULL-YEAR RESULTS TO 30 JUNE 2022
Slide 31: Further Information
For personal use only FURTHER INFORMATION Responsible entity: BWP Management Limited Tel: +61 8 9327 4356 Email: investorrelations@bwptrust.com.au 31 FURTHER INFORMATION | FULL-YEAR RESULTS TO 30 JUNE 2022