BWP TRUST (BWP)
Share Price Analysis and Chart

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07/08/2025

1

Buy

$4.10

6.22%

BWP Trust's FY25 net profit missed UBS' forecast by -1.3% with the variance accounted by costs related to internalisation. The FY26 DPS guidance was 1.3% higher than the broker's estimate and 0.4% higher than consensus.

However, the broker reckons this was due to internalisation benefits not being factored in and neither the downtime related to Bunnings ((WES)) lease expiry.

Positives include the rise in WALE to 7.7 years from 4.5 years following the Bunnings lease reset and FY26-29 lease expiries reduction to just 4-5% from 55-60%.

Across defensive, longer-WALE exposures, the broker's order of preference is Centuria Industrial REIT ((CIP)), BWP Trust and Charter Hall Long WALE REIT ((CLW)).

Buy. Target cut to $4.10 from $4.16.

FORECAST
UBS forecasts a full year FY26 dividend of 19.50 cents and EPS of 19.00 cents.
UBS forecasts a full year FY27 dividend of 20.00 cents and EPS of 19.70 cents.

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08/08/2025

3

Hold

$3.80

-1.55%

Moelis notes BWP Trust's FY25 distributable income of 18.65c met the guidance, with minimal capital profits released for the year.

Like-for-like rents grew 3% vs 4.2% in 4.2%, reflecting softer inflation. The broker notes gearing was little-changed at 21.6% but cost of internalisation will push it to 23.2%.

The next two years are expected to be capital intensive due to internalisation and as vacant stores are leased, including former Bunnings ((WES)) assets that are being re-leased or repositioned.

The broker expects the portfolio to be fully productive from FY28. Hold. Target unchanged at $3.80.

FORECAST
Moelis forecasts a full year FY26 dividend of 19.40 cents and EPS of 18.70 cents.
Moelis forecasts a full year FY27 dividend of 19.60 cents and EPS of 19.70 cents.