13/08/2009 - 15:36

Bunnings trust net profit up 11%

13/08/2009 - 15:36


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An increase in rental income and new acquisitions have boosted the full-year net profit of Bunnings Warehouse Property Trust by 11 per cent to $73.2 million.

An increase in rental income and new acquisitions have boosted the full-year net profit of Bunnings Warehouse Property Trust by 11 per cent to $73.2 million.



Part of the announcement is below:


- Income of $73.2 million for the year - up 11.0 per cent on the previous year

- Distributable profit of $40.5 million for the year - up 1.1 per cent on the previous year

- Final distribution of 4.87 cents per unit for the six months to 30 June 2009, taking the full-year distribution to 11.57 cents per unit - down 12.8 per cent on the previous year due to increased units issued during the year

- Market rent reviews on 19 properties - average 12.2 per cent increase in annual rent

- Acquisitions, developments and other improvements to portfolio totalling $45.4 million

- Portfolio value $955.6 million - down by $6.7 million following full-year net revaluation loss of $52.1 million and capital expenditure of $45.4 million during the year.

- Improved financial position as a result of a $150 million capital raising and agreement with two banks to extend existing banking facilities ($180 million) to calendar year 2012.

- Gearing (debt/total assets) 22.6 per cent at 30 June 2009 (2008: 31.5 per cent).

- Covenant gearing (debt and non-current liabilities/total assets) 23.1 per cent (2008: 31.5 per cent)

Financial results

Total income for the full-year to 30 June 2009 was $73.2 million, up by 11.0 per cent from last year, due to increases in rental income from rent reviews or new income received from acquisitions and developments.

Finance costs of $21.3 million (excluding one-off costs of terminating interest rate swaps) were 16.3 per cent higher than last year, due to the average level of debt being 15.1 per cent higher ($320.2 million compared with $278.1 million for 2008) and a higher weighted average interest rate after hedging (including margins and fees) of 6.64 per cent, compared with 6.56 per cent in the previous year.

Distributable profit for the year was $40.5 million, an increase of 1.1 per cent on the distributable profit last year. The distributable profit excludes the unrealised net loss of $52.1 million on the revaluations of the fair value of the portfolio (see revaluations section below). The revaluation loss is set-off against prior year's undistributed income.

The management expense ratio for the 12 months to 30 June 2009 (expenses other than property outgoings and borrowing costs as a percentage of average total assets) was 0.69 per cent (2008: 0.67 per cent).

As at 30 June 2009 the Trust's total assets were $999.9 million (2008: $979.9 million), with unitholders' equity of $733.0 million and total liabilities of $266.9 million.

The underlying net tangible asset backing of the Trust's units ("NTA") at 30 June 2009 was $1.79 per unit, a decline of 4.8 per cent from $1.88 per unit at 31 December 2008 (30 June 2008: $2.12). The decline in NTA over the half-year to 30 June 2009 is mainly due to a 34 per cent increase in the number of issued units during the half-year.

The Trust's gearing ratio (debt to total assets) at 30 June 2009 was 22.6 per cent (2008: 31.5 per cent), and remained within the board's preferred range of 20 to 40 per cent. Covenant gearing (debt and non-current liabilities to total assets) was 23.1 per cent (2008: 31.5 per cent). The interest cover ratio was 2.9 times (2008: 3.3 times).


A final distribution of 4.87 cents per ordinary unit has been declared and will be made on 31 August 2009 to unitholders on the Trust's register at 5.00 pm on 30 June 2009.

The final distribution takes the total distribution for the year to 11.57 cents per unit, a 12.8 per cent decrease on last year. The reduction in full-year distribution per unit is mainly due to the effect of additional units issued in the $150 million entitlement offer announced in May 2009.

The tax advantaged component of the distribution is 28.07 per cent.

Units issued under the Trust's Distribution Reinvestment Plan ("DRP") in respect of the final distribution will be issued at $1.5932 per unit, representing a 2.5 per cent discount to the volume weighted average price of the Trust's units for the 10 trading days following the record date.


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