Slide 1: 2022/23 Half-Year Results to 31 December 2022
For personal use only 2022/23 HALF-YEAR RESULTS TO 31 DECEMBER 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: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY For personal use only We acknowledge the Traditional Owners of Country throughout Australia and their continuing connection to lands and waterways upon which we depend. We pay our respect to their Elders, past and present. 3 HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 4: Presentation Outline
PRESENTATION OUTLINE For personal use only Summary Michael Wedgwood slides 5-6 Managing Director Results BWP Management Limited slides 7-8 Portfolio slides 9-13 Andrew Ross Core portfolio slides 14-19 Head of Property Alternative use properties BWP Management Limited slides 20-21 Capital management
Slide 5: Summary
BUNNINGS FRANKSTON, VIC SUMMARY For personal use only 5 SUMMARY | HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 6: 2022/23 Half-Year Results at a Glance
2022/23 HALF-YEAR RESULTS AT A GLANCE For personal use only $78.6m ▲ $57.9m 9.02 cpu $3.95 ▲ 11.8% pa Total income 3.6%1 Dist. Amount Ordinary distribution NTA 5.3%1 10 yr total return PORTFOLIO PORTFOLIO CAPITAL PERFORMANCE MANAGEMENT MANAGEMENT 3.9% 8 A- S&P Rating like-for-like rental growth Mark
Slide 7: Results
BUNNINGS BRENDALE, QLD RESULTS For personal use only 7 RESULTS | HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 8: Financial Performance
FINANCIAL PERFORMANCE SIX MONTHLY For personal use only 6 months 6 months to Dec 2022 to Dec 2021 Total income ($m) 78.6 75.9 Management expense ratio1 (%) 0.64 0.63 Other expenses ($m) 4.5 4.3 Distributable amount ($m) 57.9 57.9 Property revaluation gains2 ($m) 53.9 291.8 Net profit including prope
Slide 9: Portfolio
BROWNS PLAINS, QLD PORTFOLIO For personal use only 9 PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 10: Market Rent Review Outcomes
BUNNINGS MARKET RENT REVIEW OUTCOMES For personal use only > Annual like-for-like rental Property Location Passing Reviewed Variance Effective rent ($pa) rent ($pa) (%) date growth across the Hawthorn, VIC1,2 3,380,642 3,325,207 (1.6) 29-Oct-20 portfolio of 3.9 per cent Coburg, VIC1,3 1,706,685 1,87
Slide 11: Capitalisation Rate Outcomes
CAPITALISATION RATE OUTCOMES For personal use only > There were no standalone Bunnings Warehouse transactions in the last six months 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-21 Jun-22 Dec-22 New Bunnings Store Transacti
Slide 12: Revaluations December 2022
REVALUATIONS DECEMBER 2022 For personal use only > December 2022 weighted average Revaluations capitalisation rate 5.05 per cent No. of Rental Cap rate Value by state (Jun 2022: 5.04 per cent, properties $m/annum2 (%) ($m) 31 Dec 2022 Dec 2021: 5.11 per cent ) – 16 independent valuations NSW/ACT 18
Slide 13: Independent Revaluations December 2022
INDEPENDENT REVALUATIONS DECEMBER 2022 For personal use only Jun 2022 Jun 2022 Dec 2022 Dec 2022 Cap rate Valuation Dec 2022 Property State Cap Rate Valuation Cap Rate Valuation movement movement Term Certain (%) ($m) (%) ($m) (%) ($m) (years) Fyshwick ACT 5.50 28.3 5.50 29.9 - 1.6 2.0 Minchinbury N
Slide 14: Core Portfolio
BUNNINGS WEST IPSWICH, QLD CORE PORTFOLIO For personal use only 14 CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 15: Core Portfolio Summary
CORE PORTFOLIO SUMMARY For personal use only 3.3 ha 65 3.7 years average land properties portfolio WALE area 14,172 m2 82 % 72.0 % upgrade average lettable metro located properties or area properties occupied <15yrs 4.9% weighted average cap rate 15 CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER
Slide 16: Weighted Average Lease Expiry Profile
WEIGHTED AVERAGE LEASE EXPIRY PROFILE For personal use only 30% 25% 20% % of Rental Income 15% 10% 5% 0% FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 Beyond Showrooms BWH >15 years occupancy BWH <15 yrs occupancy or upgrades 16 CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 17: Lease Expiries Next Three Years
BUNNINGS LEASE EXPIRIES NEXT THREE YEARS For personal use only Rent Property Lease expiry Options Comments ($’000pa) Balcatta Sep-23 10 yrs 2,477 Notification required by Jun 2023 Southport Nov-23 10 yrs 1,953 Notification required by Aug 2023 Tuggeranong Nov-23 10 yrs 2,036 Notification required by
Slide 18: Lease Expiries Next Three Years (Continued)
BUNNINGS LEASE EXPIRIES NEXT THREE YEARS (CONTINUED) For personal use only Rent Property Lease expiry Options Comments ($’000pa) Morayfield Mar-25 10 yrs 1,963 Notification required by Dec 2024 Mile End Mar-25 10 yrs 2,654 Notification required by Dec 2024 Vermont South Aug-25 3 x 5 yrs 2,422 Notifi
Slide 19: Upgrade: Dubbo, New South Wales
BUNNINGS UPGRADE DUBBO, NEW SOUTH WALES For personal use only > Upgrade cost of $13.6 million at a funding rate of 4.0 per cent – land acquisition $0.4 million – development $13.6 million > Upgrade increases the total retail area by 4,673 square metres > Anticipated completion mid-2024 > On completi
Slide 20: Alternative Use Properties
BUNNINGS WOLLONGONG, NSW ALTERNATIVE USE PROPERTIES For personal use only 20 ALTERNATIVE USE PROPERTIES| HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 21: Alternative Use Properties Update
ALTERNATIVE USE PROPERTIES UPDATE For personal use only Property Lease expiry Comments Development approval for large format retail centre; leasing campaign underway – Port Kennedy Expired 51 per cent committed to lease Property rezoned to allow for a supermarket and other retail shops, leasing disc
Slide 22: Capital Management
BUNNINGS VERMONT SOUTH, VIC CAPITAL MANAGEMENT For personal use only 22 CAPITAL MANAGEMENT| HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 23: Debt Facilities
DEBT FACILITIES > Average borrowings for the half-year $473.6 million (up 1.6 per cent on prior corresponding period) For personal use only – 3.3 per cent per annum weighted average cost of debt after hedging (2021: 3.2 per cent per annum) – Borrowing costs for the half-year $7.8 million (up 4.0 per
Slide 24: Debt Duration
DEBT DURATION DEBT MATURITY PROFILE AS AT For personal use only 31 DECEMBER 2022 400 135.6 300 109.4 Volume (A$M) 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 24 CAPITAL MANAGEMENT | HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 25: Outlook
BUNNINGS THORNLEIGH, NSW OUTLOOK For personal use only 25 OUTLOOK | HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 26: Outlook
OUTLOOK For personal use only Operating environment Portfolio > The Trust remains well positioned operationally > Primary focus for the remainder of the financial with 99 per cent1 of rental income from Bunnings year is on leasing vacancies in the portfolio, and other national large format retailers
Slide 27: Questions?
QUESTIONS? For personal use only 27 QUESTIONS | HALF-YEAR RESULTS TO 31 DECEMBER 2022
Slide 28: Further Information
For personal use only FURTHER INFORMATION Responsible entity: BWP Management Limited Tel: +61 8 9327 4356 Email: investorrelations@bwptrust.com.au 28 FURTHER INFORMATION | HALF-YEAR RESULTS TO 31 DECEMBER 2022