BWP Trust reported a 4.5% rise in funds from operations (FFO) to $140.9 million for the year ended June 30, 2026, as its portfolio valuation climbed $257 million to $3.96 billion. The trust’s stock edged 0.53% higher to A$3.77 following the results, trading near the midpoint of its 52-week range of A$3.51 to A$4.12.
Like-for-like rental growth reached 3.0% for the period, while net tangible assets per security increased 3.3% to A$4.11. Profit after revaluations surged 53.8% to A$408.4 million, driven by a 4.1% rise in distribution per security to 19.41 cents and a 4.0% increase in the final distribution to 9.83 cents. The weighted average lease expiry extended to 7.3 years from 4.5 years, and the management expense ratio fell sharply to 0.34% from 0.66%.
The trust completed a strategic reset in August 2025 at a cost of A$143 million and issued a A$300 million five-year bond in October 2025 at a fixed rate of 4.55%. A fully underwritten A$228 million entitlement offer in May 2026 further strengthened its balance sheet, reducing gearing to 18.5% from 21.6% in June 2025. The weighted average cost of debt rose modestly to 4.6% for the year, ending at 5.1%, while interest cover declined to 4.2 times from 4.8 times.
Credit ratings improved, with Moody’s revising its outlook to stable and S&P affirming its A- rating. Portfolio occupancy reached 98.4%, including repurposing projects, and national tenants—primarily Wesfarmers—accounted for 96.3% of income, down from 88.6% in June 2021. Large-format retail market rent reviews averaged a 9.3% increase, exceeding CPI-linked growth of 3.1% and fixed increases of 3.0%.
BWP Trust executed A$120 million in committed capital expenditures, with key projects including Fountain Gate in Victoria (A$32 million total, A$10 million remaining) and Noarlunga in South Australia (A$12 million to fund). Development yields ranged from 6.5% to 7.5%, while the capitalization rate compressed by 15 basis points to 5.25%.
The trust sold three assets for a combined A$120 million, exceeding pre-sale valuations by 18.6% and generating internal rates of return between 5.8% and 15.2%. Acquisitions included HomeCentre Morayfield in Queensland for A$48 million and Sunbury Lifestyle Centre in Victoria for A$25.2 million, both at cap rates below 6.0%.
For FY27, BWP Trust guided to a 20.00 cents per security distribution, implying 3.0% growth, with a payout ratio of approximately 104% of FFO. Capital expenditure is forecast at A$55 million to A$65 million, excluding divestment proceeds, while the cost of debt is expected to range between 5.0% and 5.3%.
