BWP Trust BWP

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A$3.41 −0.04 (1.16%)

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As of Apr 19, 2024 6:10am Delayed Price Closed

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Company Report

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Distributions Unlikely to Increase Near-Term as Rental Growth Is Met by Rising Costs

Adrian Atkins Feb 7, 2024

For over 20 years, BWP Trust has consistently applied a strategy of generating rental income from long duration leases over warehouse properties predominantly tenanted by home improvement retail business, Bunnings. Although BWP Trust is proposing to transition some Bunnings Warehouse stores to alternative uses, strategy is to have 80%-90% of rental income from Bunnings. Wide-moat Wesfarmers owns 100% of Bunnings and 25% of BWP Trust, and is the trust's responsible entity.

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Price vs Fair Value

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BWP is trading at a 4% discount.

Price

A$3.45

Apr 18, 2024

Fair Value

A$2.80

Mar 27, 2020

Uncertainty

Medium

1-Star Price: A$5.22
5-Star Price: A$3.89
Economic Moat: Lfmpzk
Capital Allocation: Gjmpwsjkd

Bulls Say, Bears Say

Bulls

BWP’s core 65 properties are key to Bunnings’ business, and provide the foundations for a defensive rental income stream that underpin growing distributions.

Bears

BWP’s external management and fee structure may incentivize future management to acquire overvalued properties that destroy securityholder value.

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Trading Information

Previous Close Price: A$3.45
Day Range: A$3.39–3.45
52-Week Range: A$3.24–3.92
Bid/Ask: A$3.39 / A$3.42
Market Cap: A$2.38 Bil
Volume/Avg: 777,617 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized): 29.95
Price/Sales: 13.56
Dividend Yield (Trailing): 5.36%
Dividend Yield (Forward): 5.36%
Total Yield: 5.36%

Company Profile

BWP Trust is an Australian REIT focused on owing warehouse/bulky goods retailing properties with relatively large sites and high visibility and access to arterial roads. The portfolio of properties it owns are diversified across most Australian states and are on long-term leases to Australia’s dominant home improvement chain: Bunnings Group. Bunnings is a wholly owned subsidiary of Wesfarmers. Wesfarmers is a wide-moat, top 10 ASX-listed company by market capitalization. BWP Trust is also externally managed by a wholly owned subsidiary of Wesfarmers and Wesfarmers also owns 24% of the units in the trust.

Sector: Real Estate
Industry: REIT - Industrial
Stock Style Box: Mid Core
Total Number of Employees: —
Website: https://www.bwptrust.com.au

Competitors

Valuation

Metric	BWP	SCG	CQR
Price/Earnings (Normalized)	29.95	14.75	30.65
Price/Book Value	0.91	0.92	0.73
Price/Sales	13.56	6.53	8.92
Price/Cash Flow	18.91	15.31	12.51

Price/Earnings

BWP

SCG

CQR

Financial Strength

Metric	BWP	SCG	CQR
Quick Ratio	0.30	0.13	0.29
Current Ratio	0.85	0.28	2.59
Interest Coverage	−0.11	0.24	−2.73

Quick Ratio

BWP

SCG

CQR

Profitability

Metric	BWP	SCG	CQR
Return on Assets (Normalized)	−0.71%	0.48%	3.95%
Return on Equity (Normalized)	−0.87%	0.96%	5.86%
Return on Invested Capital (Normalized)	−0.08%	0.41%	4.04%

Return on Assets

BWP

SCG

CQR

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