This morning, BWP Trust (ASX: BWP) revealed its financial results for the six month period to 31 December 2017.
BWP Trust owns many of the buildings that Bunnings Warehouse rents. It was separated out from Wesfarmers Ltd (ASX: WES) a while ago, it still owns around a quarter of BWP Trust.
The results below are comparing against the six month period to 31 December 2016. Here are some of the main points:
- Revenue increased by 1.6% to $76.9 million
- ‘Distributable’ profit up 1.7% to $56.4 million
- Distribution per unit, or share, up 1.7% to 8.78 cents – this is similar to a dividend
- Rental increase was an average of 2.4%
- Net tangible assets per share (NTA) increased by 8.5%
- Gearing, or debt percentage compared to assets, was 19.8%
- Average rental tenancy is now 4.8 years
BWP Trust has 79 properties, most of which are leased to Bunnings. Management said that demand for Bunnings Warehouse properties is expected to remain strong. For the next six months the Trust expects to maintain the distribution growth at 1.7%.
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