Bwp Trust · ASX:BWP
Bwp Trust — H1 FY2008 Earnings Presentation
23 slides from Bwp Trust's earnings presentation, Feb 21, 2008
Slide 1: Half-year to 31 Dec 07
For personal use only Half-year to 31 Dec 07 Broadmeadows, VIC Balcatta, WA February 2008 www.bwptrust.com.au
Slide 2: Presentation Outline
Presentation Outline For personal use only ¾ Structure ¾ Performance for the half-year ¾ Fundamentals Portfolio Lease covenant Capital Management ¾ Outlook February 2008 2 2
Slide 3: Structure
Structure For personal use only ¾ Manager: Bunnings Property Management Limited Subsidiary of WES; but…independent board John Austin (Chairman); Leighton Properties (Chairman), MREEF, Ringmer Pacific, ex JLL Peter Mansell; WAN (Chairman), ZFX (Chairman), GTP Peter Johnston; ex WES Rick Higgi
Slide 4: Performance: half-year to Dec
Performance: half-year to 31 Dec 07 For personal use only ¾ Revenue $31.9 million 11.1% on pcp ¾ Distributable profit $19.8 million 2.0% on pcp (excl. unrealised gain in fair value) ¾ Final distribution 6.55 cpu 2.0% on pcp ¾ NTA $2.30 per unit $0.32 on pcp ¾ Market capitalisation $704 million 8.3%
Slide 5: Performance: half-year to Dec
Performance: half-year to 31 Dec 07 For personal use only ¾ Acquisition, development & upgrades ($8.6m) ($2.9m) - acquired 1.2 ha site adjoining Trust’s BWH Geraldton, WA ($0.5m) - developed into two bulky goods tenancies ($3.4m) - major upgrade BWH Morayfield, Qld @ 8% yield ($1.8m) - impro
Slide 6: Performance: DPU growth
Performance: DPU growth For personal use only Interim DPU Final DPU 14.00 12.00 10.00 DPU (cents 6.39 6.56 6.17 5.87 8.00 5.35 4.86 4.97 4.68 6.00 4.70 4.00 6.22 6.42 6.55 5.51 5.79 4.70 4.80 5.15 4.50 2.00 2.50 0.00 1 2 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 1 Trust commenced trading Sep
Slide 7: Portfolio: properties – good geographic spread
Portfolio: 58 properties – good geographic spread For personal use only Dec 07 VIC 20 NSW/ACT 13 QLD 10 WA 12 3 ) 8 SA TOTAL 58 ) 10 )2 )1 )2 )1 )1 )1 ) 12 ) 50 BWH’s ) 18 ) 2 Bunnings Distribution Centres .2 . 2 BWH development sites ) 3 Blackwoods properties ) 1 Bulky Goods February 2008 7 7
Slide 8: Portfolio: 7.4 year weighted average lease expiry
Portfolio: 7.4 year weighted average lease expiry For personal use only 20 16 N u mb e r o f l e a se s 2 12 Non BWH 1 1 8 BWH 14 10 9 4 8 6 2 3 0 1 1 2 3 4 5 6 7 8 9 10 11 12 13 Te rm to l e a se e xp i ry (ye a rs) ¾ Typical BWH lease features 5 + 5 + 5 (plus 2 x 5 year options) annual CPI esc
Slide 9: Portfolio: market rent reviews
Portfolio: market rent reviews For personal use only ¾ BWH’s every 5 years – by reference to comparable BWH’s. ¾ If not agreed then to third party determination. ¾ Half-year: 3 market rent reviews concluded, 2 negotiated and 1 determined by an independent valuer. ¾ 5 market rent reviews currently be
Slide 10: Portfolio: revaluations
Portfolio: revaluations For personal use only ¾ Property revaluations 3-yearly independent valuations directors’ valuation supported by an independent review on all properties not subject to an independent valuation at each balance date ¾ Half-year: 2.4% increase in fair value on Jun 07 (rental
Slide 11: Portfolio: recent acquisitions
Portfolio: recent acquisitions For personal use only ¾ BWH development, Hawthorn, VIC (acquired in Apr 07) 9km east of CBD 0.84ha site 7,462m² BWH two level concept store with two levels of undercover car park BWP acquired site ($19.0m) with development agreement in place development ris
Slide 12: Portfolio: recent acquisitions (cont’d)
Portfolio: recent acquisitions (cont’d) For personal use only ¾ Geraldton Showrooms, WA ($2.9m + $0.5m improvements) 1.2 ha site adjoining Trust’s BWH total retail area 1,591m2 1,200m² leased to BCF (Super Cheap Auto Group ) 391m² vacancy NEW BULKY GOODS development at rear possible BWH SU
Slide 13: Portfolio: recent acquisitions (cont’d)
Portfolio: recent acquisitions (cont’d) For personal use only ¾ Blackburn, VIC ($19.0m) – Jan 08 18km east of Melbourne CBD; near Nunawading ‘Golden Mile’ bulky goods precinct 4.1ha site; 20,464m² office/warehouse facility 2 major tenants (Gainsborough, Sleepmaster) 95% of income net income
Slide 14: BWP Major Tenant – Bunnings Group Limited
BWP Major Tenant – Bunnings Group Limited ($m) only Strong underlying business across AUS and NZ 5,000 500 4,500 450 Operat ing Rev enueuse 4,000 SMI acquisition 400 3,500 350 E B I TA ($m) 3,000 300 For personal 2,500 250 2,000 BWP established 200 1,500 150 1,000 100 500 50 0 0 1995 1996 1997 1998
Slide 15: Major tenant: the rollout continues
Major tenant: the rollout continues For personal use only ¾ FY07 network 13 BWH openings 3 small format openings 31 store upgrades 7 smaller format closures ¾ Sale of 11 BWH’s (6 Aus; 5 NZ) for > AUD $203m ¾ Sale of 7 Australian BWH’s under way February 2008 15 15
Slide 16: Capital management: debt facilities
Capital management: debt facilities For personal use only Limit Drawn ($m) ($m) Expiry ANZ 100 93 31 Jan 2009 NAB 100 99 31 Mar 2008* Westpac 50 50 28 Nov 2008# Westpac 30 30 31 July 2008 # 280 272 * NAB - review date only # Westpac - prior to 31 Dec 07 Westpac offered to combine the two limits and
Slide 17: Capital management: gearing well within target range
Capital management: gearing well within target range For personal use only 50% 40% Preferred range 30% 20% 10% 0% 01 02 03 04 05 06 07 D ec D ec D ec D ec D ec D ec D ec February 2008 17 17
Slide 18: Capital management: interest rate management
Capital management: interest rate management For personal use only BWP Hedge Book Overview Dec Jun Dec Jun Dec Jun Jun Dec 03 04 04 05 05 06 07 07 % Debt hedged1 98 95 102 100 90 88 82 82 Swap rates (%) - maximum 6.62 6.62 6.62 6.62 6.62 6.62 6.67 6.87 - minimum 4.97 4.97 4.97 4.97 4.97 4.97 5.09 5.
Slide 19: Outlook
Outlook For personal use only BWH’s continue to be the primary focus for growth, however other acquisition opportunities will be considered that meet the Trust’s investment criteria ¾ Acquisitions BWH’s from Bunnings or third party owners (97 BWH’s), either established stores or development sites
Slide 20: Outlook (cont’d)
Outlook (cont’d) For personal use only ¾ Improve existing Trust owned properties upgrades circa $5 - $10m pa BWH Morayfield ($3.4m) & BWH Mile End ($2.4m) upgrades currently under consideration ($4.4m) utilise surplus land, a /a Bayswater Showrooms, Geraldton ¾ Grow rental income from existi
Slide 21: Outlook (cont’d)
Outlook (cont’d) For personal use only Q1 FY09 Q2 FY09 Q3 FY09 Q4 FY09 Key VIC Altona Rocklea Cannon Hill Lismore WA Broadmeadows Burleigh Heads Epping Bayswater QLD Mentone Underwood NSW/ACT Sandown Southport Scoresby Hemmant (DC) Sunshine Port Macquarie Balcatta Tuggeranong Joondalup Minchinbury M
Slide 22: Outlook (cont’d)
Outlook (cont’d) For personal use only ¾ Constraints to Growth: low property yields rising interest rates February 2008 22 22
Slide 23: Disclaimer
Disclaimer For personal use only To the maximum permitted by law, Bunnings Property Management Limited disclaims all liability and responsibility for any direct or indirect loss or damage that may be suffered by any person through relying on anything contained in or omitted from this presentation. F