Brickworks Unlocks Further Value in Industrial Property Trust for Shareholders, Shares Fully Valued

Following the announcement of a AUD 200 million upward revaluation of property within Brickworks’ 50% jointly owned industrial property trust, we raise our fair value estimate for the no-moat name by 4.5% to AUD 21.10 per share. The property segment accounts for about 25% of Brickworks’ estimated enterprise value. We have also raised our fair value estimate for no-moat Washington H. Soul Pattinson, or WHSP, by 2.0% to AUD 21.20 per share given WHSP is Brickworks’ largest shareholder. Brickworks continues to screen at a modest premium of 11% relative to our revised fair value estimate, while WHSP shares trade at a sizeable 45% premium to our fair value estimate.