Bwp Trust · ASX:BWP
Bwp Trust — Bunnings Warehouse Property Trust — FY2009 Earnings Presentation
25 slides from Bwp Trust's earnings presentation, Aug 13, 2009
Slide 1: Bunnings Warehouse Property Trust Full year results 2009
For personal use only BUNNINGS WAREHOUSE PROPERTY TRUST Full year results 2009 August 2009
Slide 2: Presentation outline
Presentation outline For personal use only Grant Gernhoefer • Overview General Manager • Results Bunnings Property Management Limited • Portfolio • Capital management Andrew Ross Portfolio Manager • Structure Bunnings Property Management Limited • Outlook 2
Slide 3: Overview
Overview For personal use only • BWP’s defensive characteristics have enabled it to outperform the market BWP unit price vs S&P/ASX 200 A-REIT index & All – BWP outperformed the S&P/ASX 200 A-REIT % Ordinaries index Accumulation Index over the last 12 months¹ 20 by 48.3% on a total return basis 10 0
Slide 4: Results - performance
Results - performance For personal use only 2008/09 Previous corresponding period Revenue $73.2 million 11.0% on pcp Net (loss)/profit including revaluations ($11.7 million) $0.7 million pcp Distributable profit (excluding revaluations) $40.5 million 1.1% on pcp Full year distribution 11.57 cpu 12.8
Slide 5: 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 5.51 5.79 4.70 4.80 5.15 2 4.50 2.50 0 FY991 FY00 FY012 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 3 1 BWP commenced trading in Sep 98 Final DPU Interim
Slide 6: Results – total returns
Results – total returns For personal use only BWP total returns compared to market – periods ended 30 June 2009 20.0% BWP BWP 10.0% BWP BWP 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% One Year Three Years Five Years Ten Years BWP ASX All Ordinaries Acc. Index UBS Retail 200 S&P/ASX 200 Prop Acc. Index S
Slide 7: 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 7
Slide 8: Portfolio – WALE
Portfolio - WALE For personal use only 6.3 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 9: Portfolio – valuation process
Portfolio – valuation process For personal use only • 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 independ
Slide 10: Portfolio – sales evidence
Portfolio – sales evidence For personal use only Bunnings Warehouse Sale price $m Yield % Date Rothwell QLD 16.70 7.93 Mar 09 Nerang QLD 16.35 7.60 Jun 09 Campbelltown NSW 21.35 7.66 Jun 09 Nowra NSW 11.60 7.75 Jun 09 Mill Park VIC 16.45 7.75 Apr 09 Box Hill VIC 21.50 8.00 Jun 09 Bendigo VIC 8.68 7.
Slide 11: Portfolio – revaluations
Portfolio - revaluations For personal use only Independent valuations 31 Dec 08 30 June 09 31 Dec 09 30 June 10 VIC 4 3 2 6 WA 2 2 3 - QLD 2 4 - 1 NSW/ACT 4 1 5 1 SA - - 1 - Proportion of portfolio value 11% 1 17% 2 15% 2 14% 2 1 percentage based on fair value as at 31 December 2008 2 percentage bas
Slide 12: Portfolio – rent reviews
Portfolio – rent reviews For personal use only Average increase 12.2% Proportion of rental income Market 36% Fixed 5% 3.3% 7.1% like-for-like CPI 59% rental growth 4.5% Like-for-like rental growth FY04 FY05 FY06 FY07 FY08 FY09 BWP 8.2% 4.1% 3.0% 4.4% 2.8% 7.1% Note: Like-for-like rental growth exclu
Slide 13: Portfolio – market rent reviews
Portfolio – market rent reviews For personal use only • Typical Bunnings Warehouse market rent review clause – assumes free and open market with vacant possession – has regard to the rent paid by Bunnings at other Bunnings Warehouses – has regard to the rental value of other properties of a similar
Slide 14: Portfolio – FY09 market rent reviews
Portfolio – FY09 market rent reviews For personal use only Passing rent Determined rent Uplift Uplift Property location ($’000) ($’000) ($’000) (%) Effective date Altona, VIC* 965 994 29 3.0 24 Sep 08 Balcatta, WA 1,455 1,680 225 15.5 24 Sep 08 Bayswater, VIC 1,501 1,501 0 0.0 21 Apr 09 Broadmeadows
Slide 15: Portfolio – market rent reviews in FY10
Portfolio - market rent reviews For personal use only 10 market rent reviews in FY10 Rental income profile Quarter 1 Quarter 2 Quarter 3 FY10 FY10 FY10 Fountain Gate, VIC Maitland, Nunawading, NSW VIC Bibra Lake, Hoppers WA Crossing, VIC Albany, WA Mile End, SA Thornleigh, Mornington, Morayfield, NS
Slide 16: 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 Revaluations 19 19 23 19 19 16
Slide 17: Portfolio – acquisitions
Portfolio - acquisitions For personal use only • Mt Gravatt, QLD ($11.2m acquisition • Altona, VIC ($2.6m acquisition + $0.7m acquisition costs) + $0.2m acquisitions costs) – 10km south of Brisbane CBD – 1.0ha vacant site adjoining existing – 2.7ha site, 10,432m2 total retail area Trust owned Bunnin
Slide 18: Portfolio – developments
Portfolio - developments For personal use only • Noarlunga, SA ($3.6m est.) • Cannon Hill, QLD ($1.2m) • Hawthorn, Vic ($24.1m) – expanded main trade area and – amalgamation of BWH & DC resulting – site acquired for $19.4 million in timber drive through in retail area of 16,556m2 April 2007 – increm
Slide 19: Capital management - debt facilities
Capital management - debt facilities For personal use only As at 30 June 09 Limit ($m) Drawn ($m)1 Expiry ANZ 100 56.8 31 Jul 2010 NAB 100 53.8 Evergreen 2 CBA 100 61.1 14 Jan 2010 3 WBC 80 54.5 1 Jul 2010 3 380 226.2 1 amount drawn includes accrued interest of $0.3 million as at 30 June 2009 2 faci
Slide 20: Capital management - gearing
Capital management - gearing For personal use only Gearing at 22.6% (covenant gearing: 23.1%) • Balance sheet strength supported by: – $150 million capital raising in May 09 – active market for Bunnings Warehouses with private investors – solid rental base with growth from CPI and programmed rent re
Slide 21: Capital management – interest rates
Capital management – interest rates For personal use only • $192.0m hedged (85%) • 6.64% weighted average interest rate for all debt during the year after hedging and including margins and fees (2008: 6.56%) • 3.07 years weighted average maturity, including delayed starts (2008: 2.43 years) Hedge bo
Slide 22: Capital management – interest rates
Capital management – interest rates For personal use only Forecast* 9.8% effective interest rate for 2009/10 due to: • fully hedged position (fixed rate of approx 6.3%) • substantially higher bank margins and fees • undrawn capacity magnifies fixed costs (e.g. 120 bps nominal line fee becomes 240 bp
Slide 23: Structure
Structure For personal use only Manager: Bunnings Property Management Limited Subsidiary of Wesfarmers Limited but…independent board • John Austin (Chairman); Leighton Properties (Chairman), MREEF, Ringmer Pacific, ex Jones Lang LaSalle • Peter Mansell; ThinkSmart, OZ Minerals, Great Southern • Pete
Slide 24: Outlook
Outlook For personal use only • The Trust is well positioned to meet a range of economic and market conditions that may arise – reliable, CPI indexed income stream – conservative gearing with significant Loan to Value Ratio headroom – improved security of debt funding with $180m out to 2012, $100m e
Slide 25: 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
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