05/08/2015 - 15:22

Valuations drive $210m profit for Bunnings trust

05/08/2015 - 15:22

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Valuations drive $210m profit for Bunnings trust

Bunnings’ property arm has lodged a full-year net profit of $210 million, buoyed significantly by increased valuations of its portfolio.

The 2015 result was a near-$60 million improvement on FY2014, however $108 million of the net profit was due to gains in value of its investment properties.

Revenue was up 14 per cent, to $144 million, while its profit not including the valuation gains was $101 million, a 10 per cent increase on the previous year.

BWP Trust made one store acquisition over the period – spending a total of $18.3 million purchasing the land for, and developing, a Bunnings Warehouse store in Australind.

The trust completed five other developments in the financial year, all on the eastern seaboard.

Store upgrades are in progress in Lismore, NSW, and Rockingham, collectively worth $9 million.

Rent reviews were undertaken across 17 properties, resulting in an 8 per cent increase across the portfolio.

Reviews are also being negotiated at five Bunnings Warehouse properties, including the store in Morley.

BWP Trust’s Western Australian properties provide it with around $25 million per annum, with the 17 Bunnings Warehouse stores valued at $342.3 million.

BWP Trust will pay a final dividend of 8.17 cents per share, taking its total distribution for FY2015 to 15.84 cents per share.

The trust expects demand for property to remain strong in the next 12 months.

“On the basis of continued rental growth from the existing portfolio, and no significant unforeseen changes in operating environment, the trust could expect distribution per unit growth of approximately five per cent for the 2016 financial year,” BWP Trust said in a statement to the ASX.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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