Business Description:
BWP Trust (BWP, formerly Bunnings Warehouse Property Trust) is focused on bulky goods retailing properties, in particular, Bunnings Warehouses. Currently all properties owned by the trust are on long-term leases to wholly owned subsidiaries of Wesfarmers Ltd including Bunnings Group Limited and J Blackwood and Son Limited. Established in 1998, the responsible entity for BWP is Bunnings Property Management Limited.

Strategy Analysis:
Being the only trust solely focusing on the bulky goods retail sub-sector, BWP seeks to provide unitholders with a secure, growing income stream underpinned by long term inflation linked leases. Properties are simple, requiring little maintenance capex. Tenant led development/extensions often occur as leases roll over. Management is becoming more active with increasing acquisitions and divestments to diversify and refine the portfolio towards higher growth areas. Exposure to non-Wesfarmers related tenants will increase, though new tenants won´t exceed 20% of income. BWP Trust reported NPAT down 11.6% to $81.50m for the year ended 30 June 2011. Revenues from ordinary activities were $85.27m, up 8.6% from last year, due predominantly to increases in rental and other property income. Rental income increased as a result of acquisitions and developments completed during the year (contributing an additional $3.4m, approximately) and from rent reviews and other property income (adding approximately $2.7m during the year). Basic and Diluted EPS was 17.97 cents compared to 22.18 cents last year. Net operating cash flow was $59.11m compared to $48.33m last year. The final dividend declared was 5.80 cents, taking the full year dividend to 11.98 cents compared with 12.08 cents last year.