Bunnings trust reports lift in profit

Bunnings Warehouse Property Trust says it will target acquisitions for growth after it reported a $26.4 million interim profit, up 4.5 per cent on the previous corresponding period.

The trust reported its income had increased by 3.6 per cent on the prior half-year to $40.4 million over teh six months to December 31, driven by growth of its property portfolio from rent reviews, acquisitions and improvements to investment properties.

As of December 31, the trust's portfolio value was $1.053 billion, up $53.2 million on the previous corresponding period after a net revaluation gain of $28.2 million, capital expenditure of $32.4 million and sale proceeds of $7.4 million.

In a statement released to the ASX today, the trust said it would continue to pursue better returns from its existing assets and seek to purchase "quality" commercial properties.

"For existing assets, growth is most likely to come from increased rental as a result of scheduled rent reviews, upgrades to existing properties and acquiring adjoining land for future upgrades," the statement said.

"While Bunnings Warehouses remain the preferred target for acquisitions, other assets will be considered, selectively, that provide similar characteristics to Bunnings Warehouse properties by having a large area, being well located and with a quality tenant under a longer-term lease.

"The aim is to acquire properties that will provide a sound income stream and long term capital growth."