BWP net profit down during first half

Perth-based BWP Trust has recorded a $53.2 million net profit to December 31 2023, which included $4.2 million in unrealised losses in fair value of investment properties.

This was down from $111.3 million from the previous corresponding period, which included $53.9 million of unrealised gains in fair value of investment properties.

The company's net profit excluding unrealised gains and losses, $57.4 million, was similar to the previous corresponding period. 

Despite a reduced net profit, BWP's overall income jumped 4.7 per cent, to $82.3 million. Its financial costs climbed by 35 per cent, to $10.5 million, primarily due to higher interest rates and a rise in the weighted average cost of debt.

"Subject to there being no major disruption of the Australian economy, the trust provides distribution guidance of 9.27 cents per ordinary unit for the second half of the 2024 financial year," BWP said.

"Capital profits may be utilised to support the distribution."

BWP, Bunnings Warehouses landlord, announced last month it planned to merge with Newmark Property, in a $250 million deal, which would create an 84-asset portfolio worth $3.5 billion. 

The company said the deal with NPR would represent a total equity value of $246.8 million, coupled with total enterprise value of $517.4 million. 

BWP has 15 properties across Western Australia and last traded at $3.46 per share, up 3 per cent, as of 10.28am AWST.