BWP Trust (BWP) AI Stock Analysis

• Market Cap: AU$2.77B
• Dividend Yield: 4.87%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.43
• Revenue Growth: 16.53%
• EPS Growth: 36.39%
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.31
• Shares Outstanding: 724,378,600
• 10 Day Avg. Volume: 687,773
• 30 Day Avg. Volume: 1,026,791
• PEG Ratio: 0.26
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 12.39
• P/FCF Ratio: 20.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.93
• Price Target Upside: 3.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: AU$4.00 ▲(5.26% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is driven mainly by solid financial performance (good margins and prudent leverage, but weaker cash conversion and non-recurring profit risk) and supportive valuation (low P/E and strong yield). Earnings-call tone and guidance were positive and add confidence, while technical indicators remain the primary near-term headwind due to a below-trend price and negative momentum.

Positive Factors

Portfolio quality and lease tenor

A 7.5-year WALE and 96.7% occupancy materially reduce near-term rollover risk and provide predictable rental cash flows. Longer lease tenor supports distribution stability and gives management time to execute repurposing without immediate income pressure, a durable cash-flow advantage.

Prudent capital structure and credit profile

Modest gearing, low debt-to-equity and an A3 (stable) rating with a $300m MTN show diversified funding and lower refinancing risk. This durable financial flexibility supports development funding, repurposing and distribution policy through economic cycles.

FFO growth and distribution discipline

Consistent FFO growth and a reaffirmed distribution policy indicate management focus on cash generation and payout discipline. High gross margins and robust operating metrics underpin recurring funds from operations, supporting sustainable distributions over the medium term.

Negative Factors

Weakened cash conversion and FCF growth

A drop in cash conversion and negative free cash flow growth weakens the trust's ability to self-fund capex and development. Over months this increases dependence on external financing for repurposing and may pressure distribution flexibility if cash conversion does not recover.

High tenant concentration

Very high exposure to a small tenant set concentrates counterparty and sector risk. Even creditworthy tenants can renegotiate, relocate or face sector-specific weakness; such concentrated reliance makes income and valuations more sensitive to a few counterparties' decisions.

Repurposing and development execution/timing risk

Repurposing and redevelopment create temporary vacancies, one-off costs and timing uncertainty for when rental income resumes. Execution and approval delays can push out expected yield-on-cost returns and create durable volatility in rental income and cash flow recognition.

BWP Trust Business Overview & Revenue Model

Company Description

Established and listed on the Australian Securities Exchange ("ASX") in 1998 (see prospectus), BWP Trust ("BWP" or "the Trust") is a real estate investment trust investing in and managing commercial properties throughout Australia. The majority of the Trust's properties are large format retailing properties, in particular, Bunnings Warehouses, leased to Bunnings Group Limited ("Bunnings"). Bunnings is the leading retailer of home improvement and outdoor living products in Australia and New Zealand, and a major supplier to project builders, commercial trades people, and the housing industry. Full details on the Trust's property portfolio can be found in the Our Properties section of this website. The Trust is managed by an external responsible entity, BWP Management Limited ("the responsible entity") which is appointed under the Trust's constitution and operates under an Australian Financial Services Licence. The responsible entity is committed to managing the Trust solely and is paid an annual fee based on the gross assets of the Trust. Both Bunnings and the responsible entity are wholly-owned subsidiaries of Wesfarmers Limited ("Wesfarmers"), one of Australia's largest listed companies. Wesfarmers also owns approximately 24.75 per cent of the issued units in the Trust.

How the Company Makes Money

BWP Trust generates revenue primarily through rental income from its portfolio of properties. The trust leases its properties to various tenants under long-term agreements, which provides a consistent and predictable cash flow. Additionally, BWP benefits from property appreciation and may also realize capital gains when properties are sold. The company strategically focuses on high-quality, well-located assets with reliable tenants, which reduces vacancy risks and enhances rental income stability. Partnerships with reputable tenants in strong retail and industrial sectors further bolster its revenue streams, along with periodic property transactions that contribute to its overall profitability.

BWP Trust Financial Statement Overview

Summary

Solid overall fundamentals: revenue growth (+5.36%) and very strong gross margin (83.13%) support operating strength, and leverage is prudent (debt-to-equity 0.28). Offsetting this, cash conversion has weakened (operating cash flow to net income 0.48) with negative free cash flow growth, and the unusually high net margin (131.02%) suggests non-recurring drivers that may not be durable.

Income Statement

BWP Trust has shown consistent revenue growth with a 5.36% increase in the latest year. The gross profit margin remains strong at 83.13%, indicating efficient cost management. However, the net profit margin is unusually high at 131.02%, likely due to non-operational factors, which could pose a risk if not sustainable. EBIT and EBITDA margins are robust, reflecting strong operational performance.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.28, indicating prudent leverage. Return on equity is moderate at 9.35%, suggesting effective use of equity to generate profits. The equity ratio is strong, highlighting a solid financial structure. However, the increase in total debt over the years could be a concern if not managed carefully.

Cash Flow

Operating cash flow is positive, but the operating cash flow to net income ratio has decreased to 0.48, indicating potential issues in converting income to cash. Free cash flow growth is negative, which could impact future investments. The free cash flow to net income ratio remains stable at 1.0, suggesting that the company is generating sufficient cash relative to its net income.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	202.70M	174.46M	158.16M	153.27M	152.24M
Gross Profit	168.51M	145.59M	131.11M	129.38M	129.70M
EBITDA	300.61M	205.67M	53.41M	128.48M	128.95M
Net Income	265.58M	180.22M	36.69M	486.64M	263.17M
Balance Sheet
Total Assets	3.75B	3.59B	2.96B	3.02B	2.67B
Cash, Cash Equivalents and Short-Term Investments	26.46M	27.30M	16.83M	11.86M	33.07M
Total Debt	808.16M	771.60M	466.00M	452.70M	471.10M
Total Liabilities	906.29M	878.78M	554.31M	535.58M	558.19M
Stockholders Equity	2.84B	2.71B	2.41B	2.49B	2.12B
Cash Flow
Free Cash Flow	119.78M	128.76M	119.75M	111.04M	112.35M
Operating Cash Flow	119.78M	128.76M	119.75M	111.04M	112.35M
Investing Cash Flow	-25.40M	-23.14M	-10.15M	4.35M	2.54M
Financing Cash Flow	-95.22M	-95.16M	-104.62M	-136.60M	-146.01M

BWP Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BWP, the sentiment is Positive. The current price of 3.8 is above the 20-day moving average (MA) of 3.76, below the 50-day MA of 3.84, and above the 200-day MA of 3.63, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BWP.

BWP Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HDN	76 Outperform	AU$2.70B	7.14	8.25%	6.09%	2.70%	205.08%
RGN	70 Outperform	AU$2.61B	8.48	7.29%	5.61%	0.03%	1135.14%
CIP	70 Outperform	AU$2.01B	14.32	5.38%	4.85%	4.39%	176.52%
BWP	69 Neutral	AU$2.77B	8.28	9.58%	4.87%	16.53%	36.39%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CQR	64 Neutral	AU$2.34B	6.64	8.13%	7.72%	-9.69%	1142.57%
CLW	54 Neutral	AU$2.66B	11.98	3.57%	6.14%	-9.63%	―

BWP Trust Corporate Events

BWP Group Updates DRP Pricing for December 2025 Distribution

BWP Group has issued an update to its previous dividend/distribution announcement for the six‑month period ended 31 December 2025, primarily to advise of a change to the issue price under its distribution reinvestment plan (DRP). The distribution relates to stapled ordinary units on issue, with the record date set at 31 December 2025 and the ex‑date at 30 December 2025, providing clarity for investors on key timing and pricing parameters for the upcoming payout and reinvestment arrangements.

The most recent analyst rating on (AU:BWP) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Group Corrects ASX Notice on Unquoted Equity Securities

BWP Group has issued an updated notice to the ASX correcting an earlier filing regarding the issue, conversion or payment up of unquoted equity securities. The revision specifically amends the previously disclosed number of securities following a calculation error, underscoring the trust’s effort to maintain accurate market disclosure for investors and regulators.

The most recent analyst rating on (AU:BWP) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Group Grants Managing Director 158,668 Performance Rights Under Incentive Plan

BWP Group has updated the market on a change in Managing Director Mark Christian Scatena’s interests, following the award of 158,668 performance rights under the BWP Employee Incentive Plan as part of his remuneration. The award lifts Mr Scatena’s total holding to 166,000 performance rights, each convertible into one fully paid stapled security subject to performance hurdles tested over 1 July 2025 to 30 June 2028, with half linked to BWP’s average return on equity versus the prior three-year average and half to total securityholder return relative to the ASX200 A-REIT retail subset, reinforcing a pay structure tied to long-term returns for investors.

The most recent analyst rating on (AU:BWP) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Group Issues New Unquoted Securities Under Employee Incentive Plan

BWP Group has notified the market of the issue of 346,629 unquoted securities under its employee incentive scheme, designated as a new class of securities (code to be confirmed) with an issue date of 23 December 2025. The move underscores the trust’s ongoing use of equity-based remuneration to align staff and management interests with unitholders, potentially supporting long-term retention and performance without immediate dilution in the quoted market, as the securities are not intended to be listed on the ASX.

The most recent analyst rating on (AU:BWP) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Trust Sets Date for Half-Year Results and Investor Briefing

BWP Trust’s responsible entity, BWP Management Limited, together with BWP Property Group Ltd, has scheduled the release of the BWP Group’s half-year results for the period ending 31 December 2025 on 13 February 2026. The group will host an investor and analyst briefing on the same day, including a webcast accessible via its website, underscoring its ongoing engagement with the investment community and providing transparency around its interim financial performance and outlook for stakeholders.

The most recent analyst rating on (AU:BWP) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Director Fiona Harris Lifts Indirect Stake With On‑Market Purchase

BWP Group has disclosed a change in director Fiona Harris’s relevant interest in the company’s stapled securities, following an on‑market purchase during December 2025. Harris, through a jointly held family account with her spouse, acquired 50,000 fully paid ordinary stapled securities at $3.95 each, lifting her indirect holding from 20,000 to 70,000 securities, with no disposals or changes in contractual interests and the trades occurring outside any closed trading period, signalling increased personal financial exposure to the trust without governance or compliance concerns noted.

The most recent analyst rating on (AU:BWP) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Trust Reports $156 Million Property Revaluation Gain and Strategic Transactions

BWP Trust announced a significant unaudited property revaluation increase of $156 million as of December 31, 2025, driven by enhanced income from re-leasing activities and a firming of the capitalisation rate. The company also completed the acquisition of Morayfield Home Centre for $48 million, which is expected to be accretive to earnings, and sold the Morley property at a 56% premium to its book value, reflecting strategic asset management and optimization efforts. These transactions underscore BWP’s focus on leveraging its portfolio for profitable growth and maintaining its position as a leading LFR property owner in Australia.

The most recent analyst rating on (AU:BWP) stock is a Buy with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Group Updates Dividend Distribution Process

BWP Group has issued an update regarding its dividend distribution for the fully paid ordinary units stapled securities. The update corrects the default option for the Dividend Reinvestment Plan (DRP) to cash in cases where no election has been received. This announcement, dated December 5, 2025, pertains to the dividend distribution for the six-month period ending December 31, 2025. The correction aims to clarify the company’s dividend distribution process, ensuring stakeholders are informed of the cash default option in the absence of a DRP election.

The most recent analyst rating on (AU:BWP) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Trust Announces Increased Distribution and Reinstates Reinvestment Plan

BWP Trust has announced a preliminary distribution estimate of 9.58 cents per stapled security for the six-month period ending 31 December 2025, marking a 4.1% increase from the previous corresponding period. The distribution reinvestment plan has been reinstated, allowing unitholders in Australia and New Zealand to participate without any discount, potentially enhancing shareholder value and reinforcing the company’s commitment to providing stable returns.

The most recent analyst rating on (AU:BWP) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Trust Announces New Distribution for Stapled Securities

BWP Trust has announced a new distribution for its fully paid ordinary units stapled securities, amounting to AUD 0.0958 per unit. This distribution, related to the six-month period ending December 31, 2025, will be paid on February 27, 2026, with an ex-date of December 30, 2025, and a record date of December 31, 2025. This announcement reflects BWP Trust’s continued commitment to providing returns to its investors, potentially enhancing its attractiveness to stakeholders and reinforcing its position in the real estate investment market.

The most recent analyst rating on (AU:BWP) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Trust Appoints New Director, Timothy James Bult

BWP Trust has announced the appointment of Timothy James Bult as a director, effective December 1, 2025. This appointment is significant for the company as it may influence its strategic direction and governance. Bult holds an indirect interest in 50,000 securities through his spouse, indicating potential alignment with shareholder interests.

The most recent analyst rating on (AU:BWP) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.

BWP Trust Announces Leadership Changes with New Chair and Director

BWP Trust has announced a leadership transition with the retirement of Tony Howarth as Chair, to be succeeded by Fiona Harris, a seasoned director with extensive experience in finance and investment sectors. Additionally, Tim Bult from Wesfarmers will join the Board as a non-executive director, bringing over 25 years of strategic and commercial expertise to support BWP’s strategic framework and governance.

The most recent analyst rating on (AU:BWP) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on BWP Trust stock, see the AU:BWP Stock Forecast page.