Key Highlights
- Statutory profit attributable to securityholders rose 53.8% to $408.4 million, compared with $265.6 million in FY25.
- Funds from operations increased 4.5% to $140.9 million, while FFO per security rose 2.1% to 19.29 cents.
- Total FY26 distributions increased 4.1% to 19.41 cents per security, with FY27 distribution guidance set at 20.00 cents.
- Net tangible Assets per security increased 3.3% to $4.11 as the property portfolio value increased by $257 million.
BWP Trust (ASX:BWP) delivered higher Earnings and distributions for the year ended 30 June 2026, with statutory profit benefiting from Investment property and derivative Fair Value gains. Revenue from ordinary activities increased 3.0% to $209.3 million, while profit after tax before fair value movements rose 5.9% to $137.3 million. Statutory profit attributable to securityholders reached $408.4 million, an increase of 53.8% from $265.6 million in FY25.
Funds From Operations and Distributions
Funds from operations, a key measure of the underlying operating performance of the property trust, increased 4.5% to $140.9 million. FFO per security rose 2.1% to 19.29 cents, reflecting continued rental income growth and portfolio activity.
Total distributions for FY26 reached 19.41 cents per security, representing a 4.1% increase from the previous year. The interim distribution increased to 9.58 cents from 9.20 cents, while the final distribution payable rose to 9.83 cents from 9.45 cents.
The final distribution is scheduled for payment on 27 August 2026. For FY27, BWP has provided distribution guidance of 20.00 cents per security, representing approximately 3.0% growth from FY26.
Property Portfolio Supports Asset Growth
BWP’s portfolio value increased by $257 million during FY26. The increase reflected improved rental income and a firming in the weighted average Capitalisation rate to 5.25%. Net tangible assets per security consequently increased 3.3% to $4.11 from $3.98.
Portfolio weighted average Lease expiry increased to 7.3 years following the management internalisation and the reset of Bunnings leases. Like-for-like rental growth was 3.0%, while large-format retail leasing spreads negotiated during the year averaged 23.6%.
The trust continued to reposition selected properties through renewals, divestments and redevelopment. Assets divested during the period included properties at Morley, Port Kennedy and Chadstone Homeplus Homemaker Centre. Repurposing projects progressed at Fountain Gate, Broadmeadows and Noarlunga.
Expansion of Large-Format Retail Exposure
BWP continued to increase its exposure to large-format retail assets during the year. The trust acquired HomeCentre Morayfield in Queensland for $48.0 million at a 5.75% Market Capitalisation rate.
In August 2026, after the reporting period, BWP acquired Sunbury Lifestyle Centre in Victoria for $25.2 million at a 6.0% market capitalisation rate. Both assets were fully leased large-format retail centres.
The company said these transactions increase exposure to the broader large-format retail market, while its existing portfolio remains supported by Bunnings Warehouse properties and other national tenants across retail, automotive and self-storage.
Balance Sheet and Management Reset
BWP’s strategic reset continued through FY26, following the internalisation of management from Wesfarmers and changes to its capital structure. The trust completed a $300 million medium-term bond issue in October 2025 and a $228 million accelerated non-renounceable entitlement offer in May 2026.
These transactions were intended to diversify funding sources, reduce gearing and improve financial flexibility. Moody’s subsequently revised BWP’s Credit rating to A3 stable.
The internalisation of management was completed in August 2025, while FY26 also included changes to the Board as BWP moved into its next phase under the internalised structure.
FY27 Outlook
BWP expects rental income in FY27 to continue to be largely supported by Wesfarmers Group and other national large-format retail, automotive and self-storage businesses. The trust expects Demand for Bunnings Warehouse properties to remain stable in the near term.
Management plans to focus on completing repurposing projects, capturing positive lease reversions and leasing spreads, progressing Bunnings store upgrades and expansions, and pursuing acquisitions that complement the existing portfolio.
FFO in FY27 is expected to benefit from like-for-like rental growth, leasing spreads, repurposing activities, acquisitions and lower interest expense following the May 2026 Equity raising. These benefits are expected to be partly offset by lower rental income following recent property divestments.
Conclusion
BWP Trust’s FY26 results combined higher underlying operating earnings with a substantial increase in statutory profit, although the latter was materially influenced by fair value gains. FFO increased 4.5% to $140.9 million, distributions rose 4.1% to 19.41 cents per security and NTA per security increased to $4.11. Portfolio value also increased, while the trust expanded its large-format retail exposure through acquisitions. For FY27, BWP has guided to a 20.00-cent distribution per security, with rental growth, leasing activity, acquisitions and lower interest costs expected to support FFO, while income lost from property divestments remains a moderating factor.