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BWP Trust
(Sydney:BWP)
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Rating:73Outperform
Price Target:
AU$4.00
â–²(3.36% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by solid financial quality (growth, moderate leverage, positive cash flow) and attractive valuation (low P/E and strong yield). These positives are tempered by weak near-term technical momentum and earnings-call risks around elevated CapEx, higher funding costs, and a distribution payout guided above 100% of FFO.
Positive Factors
High Occupancy and Longer Lease Security
High occupancy and a longer weighted average lease expiry support predictable rental income, reduce near-term vacancy risk and improve visibility over cash flows. This strengthens the portfolio’s income resilience through normal industrial property cycles.
Negative Factors
Higher Funding Costs and Lower Interest Cover
Higher debt costs directly reduce distributable earnings and weaken interest protection. Although gearing is moderate, refinancing and variable-rate exposure could continue pressuring cash flows if funding costs remain elevated over the planning period.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy and Longer Lease Security
High occupancy and a longer weighted average lease expiry support predictable rental income, reduce near-term vacancy risk and improve visibility over cash flows. This strengthens the portfolio’s income resilience through normal industrial property cycles.
Read all positive factors
BWP Trust (BWP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.74B
Dividend Yield5.55%
Average Volume (3M)1.09M
Price to Earnings (P/E)6.2
Beta (1Y)0.46
Revenue Growth2.96%
EPS Growth50.62%
CountryAU
Employees14
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.56
Shares Outstanding785,446,700
10 Day Avg. Volume1,254,203
30 Day Avg. Volume1,094,637
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.82
Price to Sales (P/S)13.22
P/FCF Ratio20.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.85Price Target Upside-0.65% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$210.88M
BWP Trust Business Overview & Revenue Model
Company Description
BWP Trust, a real estate investment trust, commenced trading on the Australian Securities Exchange (ASX) in 1998, focusing on the acquisition and administration of commercial properties throughout Australia. Its portfolio largely comprises expansi...
How the Company Makes Money
BWP Trust primarily makes money by earning rental income from leasing its industrial and logistics properties to tenants. Its main revenue stream is contracted base rent under long-term lease agreements, typically with provisions that can include ...
BWP Trust Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 09, 2027
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial positives: FFO growth (+4.5%), a lower management expense ratio, portfolio valuation uplift (+$257m), longer WALE (7.3 years), strong LFR leasing outcomes (avg +23.6% spreads) and reduced gearing (18.5%). These were balanced by higher borrowing costs (+22% borrowing costs; cost of debt 4.6%), a lower interest cover (4.2x), elevated FY'27 capital expenditure ($55m–$65m) and a payout ratio guided at ~104% of FFO which relies in part on sale profits. On balance the positives — improved income security, value-creating repurposing, balance sheet reset and strong LFR momentum — outweigh the near-term financial headwinds from higher rates and elevated CapEx.Positive Updates
FFO Growth
Funds from operations (FFO) were $140.9m, up 4.5% on FY'25, supported by increased rental income and a lower management expense ratio post-internalization.
Negative Updates
Higher Borrowing Costs and Increased Borrowings
Average borrowings rose 17.6% to $940.7m; weighted average cost of debt increased to 4.6% from 4.4%; borrowing costs increased 22.0% to $42.7m.
Read all updates
Q4-2026 Updates
Positive
Negative
FFO Growth
Funds from operations (FFO) were $140.9m, up 4.5% on FY'25, supported by increased rental income and a lower management expense ratio post-internalization.
Read all positive updates
Company Guidance
BWP guided FY'27 distributions of $0.200 per security (about 3% growth on FY'26) with an expected payout ratio of ~104% of FFO (inside its 90–110% target); FFO is expected to be supported by like‑for‑like rental growth, positive LFR leasing spreads, repurposing contributions and acquisitions and lower interest expense after the May 2026 equity raise, but moderated by lost income from recent divestments — around $57 million of capital profits on sale were recorded over the three years to 30 June 2026 to help offset this. Elevated capital expenditure is expected to continue, with FY'27 CapEx guided at $55–65 million (ex‑divestment proceeds); leases subject to market rent review represent only ~4% of base rent while ~45% of base rent is CPI‑linked and ~51% is fixed (2–4% increases), and specific project metrics include Pakenham rentalised at 6.5% on a new 10‑year lease and future Bunnings expansions to be rentalised at a 5‑year swap plus 200 bps — guidance is subject to no major disruption to the Australian economy or material market changes.BWP Trust Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
67
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 209.33M | 202.70M | 174.46M | 158.16M | 153.27M |
| Gross Profit | 190.99M | 168.51M | 145.59M | 131.11M | 129.38M |
| EBITDA | 451.55M | 300.61M | 205.67M | 53.41M | 128.48M |
| Net Income | 408.40M | 265.58M | 180.22M | 36.69M | 486.64M |
Balance Sheet | |||||
| Total Assets | 4.23B | 3.75B | 3.59B | 2.96B | 3.02B |
| Cash, Cash Equivalents and Short-Term Investments | 117.34M | 26.46M | 27.30M | 16.83M | 11.86M |
| Total Debt | 758.69M | 808.16M | 771.60M | 466.00M | 452.70M |
| Total Liabilities | 871.49M | 906.29M | 878.78M | 554.31M | 535.58M |
| Stockholders Equity | 3.36B | 2.84B | 2.71B | 2.41B | 2.49B |
Cash Flow | |||||
| Free Cash Flow | 134.50M | 119.78M | 128.76M | 119.75M | 111.04M |
| Operating Cash Flow | 134.50M | 119.78M | 128.76M | 119.75M | 111.04M |
| Investing Cash Flow | -78.86M | -25.40M | -23.14M | -10.15M | 4.35M |
| Financing Cash Flow | 35.25M | -95.22M | -95.16M | -104.62M | -136.60M |
BWP Trust Technical Analysis
Negative
3.87
Price Trends
3.71
Negative
3.75
Negative
3.73
Negative
Market Momentum
-0.04
Negative
32.39
Neutral
19.02
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BWP, the sentiment is Negative. The current price of 3.87 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.71, and above the 200-day MA of 3.73, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 32.39 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BWP.
BWP Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | AU$700.01M | 9.53 | 7.93% | 7.31% | -12.18% | -11.49% | |
73 Outperform | AU$2.74B | 6.23 | 12.78% | 5.55% | 2.96% | 50.62% | |
72 Outperform | AU$1.37B | 10.69 | 6.78% | 8.10% | -1.27% | -24.64% | |
69 Neutral | AU$53.24B | 19.05 | 11.41% | 1.16% | 17.33% | 59.19% | |
67 Neutral | AU$1.70B | 10.50 | 6.45% | 6.20% | 6.35% | 22.57% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | AU$825.55M | 6.75 | 9.31% | 9.38% | 6.55% | 44.74% |
* Real Estate Sector Average
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BWP Trust Corporate Events
BWP Trust Sets Half-Year AMIT Distribution and Fund Payment Details
Aug 18, 2026
BWP Trust has confirmed its status as an Attribution Managed Investment Trust for the financial year ending 30 June 2026, underpinning the tax framework applied to its distributions. The board has detailed key dates for the half-year distribution,...
BWP Group Files Updated Corporate Governance Statement and Appendix 4G
Aug 18, 2026
BWP Group has released its updated corporate governance statement for the financial year ended 30 June 2026, confirming that the document is current as of 19 August 2026 and available on its website. The statement outlines the extent to which the ...
BWP Group Confirms Final Distribution for June 2026 Half-Year
Aug 18, 2026
BWP Group, an Australian listed property trust, holds a portfolio of fully paid ordinary stapled securities backed by large-format retail and commercial assets, aimed at generating steady rental income. The trust is structured to appeal to income-...
BWP Group Sets Out 2026 Governance Framework and Wesfarmers Ties
Aug 18, 2026
BWP Group has detailed its 2026 corporate governance framework, emphasizing board leadership, high governance standards and a robust system of policies, risk management and independent assurance to support effective management and statutory compli...
BWP Trust Maps Out FY26 Strategy in August Investor Presentation
Aug 18, 2026
BWP Trust has released its August 2026 investor presentation outlining its FY26 overview, reset activities, results, operations, outlook and supporting appendices. The document signals a structured communication to investors about current performa...
BWP Trust Sets Out 2026 Results and Strategy in Annual Report
Aug 18, 2026
BWP Trust has released its Annual Report for the 2026 financial year, detailing financial performance, distributions, debt and capital management, and the performance of its property portfolio. The report also outlines the operating environment an...
BWP Trust lifts full‑year profit, asset values and investor distributions
Aug 18, 2026
BWP Trust reported full‑year results for the period ended 30 June 2026, highlighting solid operational performance in its property portfolio and income generation for securityholders. The trust operates in the Australian listed property sect...
BWP Trust Sets Date for Full-Year 2026 Results and Investor Briefing
Jul 2, 2026
BWP Trust has advised that it will release its full-year financial results for the year ended 30 June 2026 on 19 August 2026. The disclosure will be accompanied by an investor and analyst briefing later that morning, which will be available via we...
BWP Group Director Alison Quinn Increases Indirect Stapled Security Holding
Jun 30, 2026
BWP Group has disclosed a change in director Alison Quinn’s indirect interest in the group’s fully paid ordinary stapled securities. Quinn holds her interest through the Marylebone Superannuation Fund, for which Netwealth Investments L...
BWP Trust lifts June 2026 distribution estimate and activates DRP
Jun 23, 2026
BWP Trust has issued a preliminary estimate of a 9.83 cent distribution per stapled security for the six months to 30 June 2026, representing a 4.0% increase on the prior corresponding period. The entire amount is expected to be paid from BWP Trus...
BWP Group Announces Six-Monthly Distribution for June 2026 Period
Jun 23, 2026
BWP Group has declared a six-monthly distribution of AUD 0.0983 per fully paid stapled security for the period ending 30 June 2026. The distribution timetable sets an ex-date of 29 June 2026, a record date of 30 June 2026 and a payment date of 27 ...
BWP director increases indirect stake through retail entitlement offer
Jun 3, 2026
BWP Group has disclosed a change in director Danielle Carter’s relevant interests in its stapled securities, reflecting her indirect holdings through family-related investment structures. Her interest is held via the Carter Family Super acco...
BWP Group Seeks ASX Quotation for 26.9 Million New Stapled Securities
May 27, 2026
BWP Group has lodged an application with the ASX for quotation of 26,966,849 fully paid ordinary units stapled into securities, to be issued on 29 May 2026. The move expands the volume of BWP securities available for trading, potentially enhancing...
BWP Group Raises $228m as Retail Entitlement Offer Closes
May 26, 2026
BWP Group has completed the retail component of its fully underwritten 1-for-12 accelerated non-renounceable entitlement offer at a fixed price of $3.77 per new security, lifting the total equity raised under the offer to about $228 million. Eligi...
BWP Director Fiona Harris Increases Stake via Entitlement Offer
May 25, 2026
BWP Group has disclosed a change in director Fiona Harris’s indirect holdings in the trust’s stapled securities, which are jointly held with her spouse via The BHT Family Account. The move reflects an incremental increase in her invest...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.