Bwp Trust · ASX:BWP
Bwp Trust — Bunnings Warehouse Property Trust — Investor Presentation (March 2010)
20 slides from Bwp Trust's investor presentation, Mar 31, 2010
Slide 1: Extended Lease Tenure – Investor Presentation
ARSN 088 581 097 31 March 2010 Extended Lease Tenure – Investor Presentation only The Directors of Bunnings Property Management Limited, the responsible entity for the Bunnings Warehouse Property Trust (“the Trust”), today attach the Extended Lease Tenure R E L E A S E presentation material, which s
Slide 2: Bunnings Warehouse Property Trust – Extended Lease Tenure
For personal use only BUNNINGS WAREHOUSE PROPERTY TRUST Extended Lease Tenure April 2010
Slide 3: Presentation Outline
Presentation Outline For personal use only • Overview Grant Gernhoefer • Outline of Extended Lease General Manager Tenure (“ELT”) Bunnings Property Management Limited • Examples of ELT by property • Advantages of ELT to the Trust Andrew Ross Portfolio Manager • Disadvantages Bunnings Property Manage
Slide 4: Overview
Overview For personal use only • Proposed transaction to extend • No short-term increase in Trust leases over 35 Bunnings earnings, but secures an average Warehouses leased to Trust’s of 6 years’ additional committed main tenant Bunnings Group income beyond current term for Limited (“BGL”) 34 proper
Slide 5: Outline of ELT
Outline of ELT For personal use only • Extends committed term (term for which BGL is committed to lease the properties) and BGL tenure (term for which BGL is entitled to lease the properties, including optional terms) • Individual leases extended by either 5 years or 10 years (Details by property in
Slide 6: Outline of ELT
Outline of ELT For personal use only • 18 Bunnings Warehouses excluded – 16 properties: either or both parties considered existing tenure was sufficient; or – 2 properties: subject to other dealings or negotiations between the parties (e.g. upgrades) • Exclusion of properties reflects robustness of
Slide 7: Examples of ELT by property
Examples of ELT by property * For personal use only 10 for 10 (7 properties) Nunawading (Vic) Existing 5.1 years 5 years 5 years Proforma Extended 15.1 years 10 years Lease Tenure 5 for 5 (26 properties) Mindarie (WA) Existing 6.7 years 5 years 5 years Proforma Extended 11.7 years 5 years 5 years Le
Slide 8: Examples of ELT by property
Examples of ELT by property * For personal use only 5 for 10 (1 property) Cannon Hill (Qld) Existing 9.3 years 5 years Proforma Extended 14.3 years 10 years Lease Tenure 0 for 5 (1 property) Noarlunga (SA) Existing 9.8 years 5 years Proforma Extended 9.8 years 5 years 5 years Lease Tenure Committed
Slide 9: Advantages of ELT for the Trust
Advantages of ELT for the Trust For personal use only • Secures future rental income (approximately $280m* over the average 6 years’ increased committed term) • “Locks in” high quality tenant • Secures existing lease terms and conditions beyond current expiry • Reduces re-leasing or vacancy risk fro
Slide 10: Disadvantages of ELT for the Trust
Disadvantages of ELT for the Trust For personal use only • Commits properties for a further 5 or 10 years: – defers opportunity to renegotiate better terms with BGL or find higher and better use, BUT: – already 14 to 26 years before properties would revert to the Trust – prospect of higher and bette
Slide 11: Property Portfolio Impact
Property Portfolio Impact For personal use only • Increase in portfolio WALE by 3.7 years Committed term Tenant tenure Annualised rent (years) (years) Type of property Quantity ($) Existing Extended Existing Extended Subject properties 35 47,353,270 5.5 11.5 16.6 22.9 Other Bunnings 18 21,741,654 7.
Slide 12: Property Portfolio Impact: Improved WALE
Property Portfolio Impact For personal use only • Improved WALE Estimated Weighted Average Lease Expiry (by rent) 10.0 9.0 8.0 Extended lease tenure 7.0 6.0 5.0 Years 4.0 3.0 2.0 Without lease extensions 1.0 0.0 As at 31 December 2009 (Assumes no acquisitions or disposals and exercise of all tenant
Slide 13: Property Portfolio Impact: Lease expiry profile
Property Portfolio Impact For personal use only • Extends and smooths lease expiry profile Existing Lease Expiry Post Extended Lease Tenure 12
Slide 14: Property Portfolio Impact: Existing terms and conditions
Property Portfolio Impact For personal use only • Extends leases on existing terms and conditions (more favourable to the Trust than generally available for Bunnings Warehouses in the current market) – Majority with no caps on market rent reviews – Limited committed capital expenditure requirements
Slide 15: Increase in Portfolio Capital Value
Increase in Portfolio Capital Value* For personal use only • Estimated net increase on pro-forma basis of $13.9m • Equivalent to +$0.03 Net Tangible Assets per unit • Increase based on improved (lower) capitalisation rates on some subject properties due to longer committed term • Decrease of 2 prope
Slide 16: Summary
Summary For personal use only • Portfolio management initiative • Secures an average 6 years’ future rental income for 34 properties • Low cost enhancement of portfolio: – Extends leases on existing terms and conditions – Improved capital value – Longer WALE – Smoothed and extended lease expiry prof
Slide 17: 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
Slide 18: Appendix A: Schedule of Subject Properties for ELT
Appendix A: Schedule of Subject Properties for ELT * For personal use only Committed term (years) BGL tenure (years) Estimated Property Name change in Existing committed Revised committed Cap Rate Existing BGL tenure Revised BGL Tenure term term Balcatta 3.7 13.7 13.7 23.7 -0.25% Croydon 6.8 16.8 16
Slide 19: Appendix A: Schedule of Subject Properties for ELT
Appendix A: Schedule of Subject Properties for ELT * For personal use only Committed term (years) BGL tenure (years) Estimated Property Name Existing committed Revised committed change in Existing BGL tenure Revised BGL Tenure Cap Rate term term Albany 4.8 9.8 14.8 19.8 -0.25% Altona 3.7 8.7 13.7 18
Slide 20: Appendix A: Schedule of Subject Properties for ELT
Appendix A: Schedule of Subject Properties for ELT * For personal use only Committed term (years) BGL tenure (years) Estimated Property Name Existing committed Revised committed change in Existing BGL tenure Revised BGL Tenure term term Cap Rate Mandurah 3.9 8.9 13.9 18.9 0.00% Mentone 3.7 8.7 13.7
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