BWP Trust · ASX:BWP

BWP Trust — Bunnings Property Trust — Investor Presentation (July 2001)

21 slides from BWP Trust's investor presentation, Jul 24, 2001

  1. Slide 1: Bunnings Property Management Limited

    Bunnings Property Management Limited 24 July 2001

  2. Slide 2: Manager and Directors

    Manager: Linda Kenyon Chairman: Bill Cairns (non-executive) Directors: Peter Mansell (non-executive) Robert McCuaig (non-executive) Gene Tilbrook 2

  3. Slide 3: Introduction

    Introduction • History • Geographic spread • Growth indicators • The Tenant • Other issues – The rollout programme – Funding – Property management – Wesfarmers’ bid for Howard Smith » Implications 3

  4. Slide 4: History

    History • IPO closed early and oversubscribed - September 1998 • original portfolio - $170 million, 20 properties • Trust listed on ASX - 16 September 1999 • one for three rights issue - March 2000 4

  5. Slide 5: Geographic diversification (as at June 2001)

    Geographic diversification (as at 30 June 2001) Queensland 6 warehouses Western Australia 6 warehouses 2 sites South Australia 2 warehouses NSW / ACT 2 warehouses Victoria 13 warehouses 3 sites 5

  6. Slide 6: Asset growth

    Asset growth Assets Revaluations 300 200 $m 100 0 98/99 99/00 00/01 6

  7. Slide 7: Projected asset growth - 5 properties per year

    Projected asset growth - 5 properties per year (excludes revaluations) 500 400 300 $m 200 100 0 98/99 99/00 00/01 01/02 02/03 03/04 7

  8. Slide 8: Projected asset growth - 7 properties per year

    Projected asset growth - 7 properties per year (excludes revaluations) 500 400 $m 300 200 100 98/99 99/00 00/01 01/02 02/03 03/04 8

  9. Slide 9: General principles

    General principles • 20-40% gearing • hedging of at least 50% of actual or anticipated debt • return criteria 9

  10. Slide 10: The Tenant

    The Tenant • Bunnings has nearly tripled its sales since 1995 1600 Sales 1200 $m 800 400 0 1995 1996 1997 1998 1999 2000 2001 (forecast) 10

  11. Slide 11: The Tenant (continued)

    The Tenant (continued) • Bunnings’ profit has grown at a faster rate than its sales 160 EBIT 120 $m 80 40 0 1995 1996 1997 1998 1999 2000 2001 (forecast) 11

  12. Slide 12: The sites

    The sites • visible and accessible from a major arterial, highway or freeway • ready vehicle access • ample parking • appropriate council zoning • cheap construction costs 12

  13. Slide 13: The sites (continued)

    The sites (continued) • land with industrial value as opposed to commercial • clustering of complementary outlets nearby • significant catchment area • average warehouse site - 2.9 hectares • average warehouse size - 7,022 square metres 13

  14. Slide 14: Strengths

    Strengths • the tenant – proven trading record – strong income stream • long term leases: 5 + 5 + 5 years • potential for long term capital appreciation • Trust not exposed to development risk • geographically diversified 14

  15. Slide 15: Results for half-year ended December 2000

    Results for half-year ended 31 December 2000 2000 1999 Total income $11.2m $8.4m Operating profit $8.0m $6.3m Distribution per unit 4.5c 4.7c Tax advantaged components Tax free 14.5% 14.2% Tax deferred 25.6% 41.6% Management expense ratio (annualised) 0.4% 0.4% 15

  16. Slide 16: Results for half-year ended December 2000

    Results for half-year ended 31 December 2000 2000 1999 Total assets $250.8m $211.0m Borrowings $67.5m $75.4m Unitholders’ equity $174.5m $129.0m Gearing (debt to total assets) 26.9% 35.7% Number of units on issue 178m 132m Number of unitholders 9,170 9,087 Net asset backing per unit $0.98 $0.98 Unit

  17. Slide 17: Half-year results since listing

    Half-year results since listing • Distributions per unit of the Trust since listing 6 5 Cents per unit 4 3 2 1 0 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 (forecast) 17

  18. Slide 18: Revaluations

    Revaluations Book value Current market % change Current (price plus costs) value valuation yield* Altona, Vic $7,182,000 $8,200,000 +14.17% 9.75% Fountain Gate, Vic $8,765,000 $10,500,000 +19.79% 9.50% Nunawading, Vic $12,879,000 $14,800,000 +14.92% 9.50% Sandown, Vic $8,237,000 $9,400,000 +14.12% 9

  19. Slide 19: BWP unit price history

    $ Ju l-0 0.96 1.00 1.04 1.08 1.12 1.16 1.20 0 Au g- 00 Se p- 00 O ct -0 0 No v- 00 De c- 00 BWP unit price history Ja n- 19 01 Fe b- 01 M ar -0 1 Ap r-0 1 M ay -0 1 Ju n- 01

  20. Slide 20: BWP vs ASX property 300 index

    Ju l-0 96 100 104 108 112 116 120 0 Au g- 00 Se p- 00 O ct -0 0 No v-0 0 BWP De c- 00 Ja n- 20 01 LPT300 Fe b- 01 M ar -0 1 BWP vs ASX property 300 index Ap r-0 1 M ay -0 1 Ju n- 01

  21. Slide 21: www.bunningspropertytrust.com.au

    www.bunningspropertytrust.com.au 21

Bunnings Property Trust — Investor Presentation (July 2001) on 6ix