Property investor BWP Trust has announced an increase of distributable profit of 12.2 per cent for the year to June 30, driven by fast growth in rental incomes stemming from its acquisition of 11 Bunnings Warehouse stores during the year.
BWP Trust said its income grew to $85.3 million, up 8.6 per cent on the previous year, resulting in distributable profit of $56.6 million.
The value of the trust’s portfolio increased by $225.8 million over the year, following capital expenditure of $207.9 million, the sale of a Canning Vale industrial property for $7.4 million, and a net revaluation gain of $25.4 million.
BWP Trust said it expected further growth in rental income, with seven Bunnings Warehouse stores and one non-Bunnings property up for five-yearly rent reviews over the next year.
“Upgrades of existing properties will also contribute to earnings growth, with capital commitments to upgrade three Bunnings Warehouses, totalling approximately $25 million over the next 12 to 18 months,” BWP Trust said in a statement.
BWP Trust says it has forecast a 13.3 cents per share distribution for the year ending June 30, 2012.
At close of trade today its stock had gained 3.74 per cent, to $1.66.