BWP Trust (AU:BWP)
ASX:BWP
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BWP Trust
(Sydney:BWP)
Select Model
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Rating:73Outperform
Price Target:
AU$4.50
▲(16.28% Upside)
Action:UpgradedDate:05/10/26
The score is primarily supported by strong valuation (low P/E and ~5% yield) and solid overall financial performance with prudent leverage, while the earnings call reinforces guidance and balance-sheet confidence. Technical signals are more neutral, and cash flow conversion/free cash flow trends temper the overall rating.
Positive Factors
Extended WALE & High Occupancy
A 7.5-year WALE and 96.7% occupancy materially reduce near-term lease rollover risk and support durable rental income. Strong LFR leasing spreads and like‑for‑like rental growth point to ongoing tenant demand for large-format logistics/retail space, underpinning stable cash flows over the medium term.
Negative Factors
Weak free cash flow trend
Negative free cash flow growth and a declining operating cash flow to net income ratio indicate weaker cash conversion. Over several months this can constrain capital for repurposing, force higher reliance on external financing or asset sales, and pressure distribution coverage if trends persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Extended WALE & High Occupancy
A 7.5-year WALE and 96.7% occupancy materially reduce near-term lease rollover risk and support durable rental income. Strong LFR leasing spreads and like‑for‑like rental growth point to ongoing tenant demand for large-format logistics/retail space, underpinning stable cash flows over the medium term.
Read all positive factors
BWP Trust (BWP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$3.03B
Dividend Yield4.87%
Average Volume (3M)1.03M
Price to Earnings (P/E)3.2
Beta (1Y)0.47
Revenue Growth7.04%
EPS Growth11.89%
CountryAU
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.46
Shares Outstanding785,127,000
10 Day Avg. Volume687,773
30 Day Avg. Volume1,026,791
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.88
Price to Sales (P/S)12.39
P/FCF Ratio20.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$3.88Price Target Upside0.37% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$204.84M
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...
How the Company Makes Money
BWP Trust makes money primarily by earning rental income from leasing its industrial properties to tenants. Revenue is generated through contracted base rents under lease agreements, and may also include recoveries and reimbursements from tenants ...
BWP Trust Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
Overall the call presents a positive operational and financial update: strong statutory profit (+41.2%), valuation uplift (+$155.9M) and FFO growth (+6%), an extended WALE (7.5 years), affirmed distribution guidance (+4.1% year-on-year) and an upgraded credit rating underpin a constructive view. These positives outweigh near-term challenges from repurposing-driven vacancy/headwinds, a small number of negative market rent reviews (-4.4% for affected leases), one-off internalization costs, and some timing uncertainty on development income recognition.Positive Updates
Strong Profit and Valuation Uplift
Statutory profit after fair value movements and tax of $221.8 million vs $157.1 million in the prior period (up 41.2%); net fair value gains of $155.9 million driven by improved rental income and cap rate compression of 13 basis points to a weighted average cap rate of 5.27%.
Negative Updates
Repurposing-Driven Rental Headwind and Temporary Vacancies
Repurposing activity caused stores to be vacated (e.g., Fountain Gate and Noarlunga), contributing to a headwind to rental income and reducing occupancy to 96.7% for the half; timing of repurposing capex and leasing creates near-term income volatility.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profit and Valuation Uplift
Statutory profit after fair value movements and tax of $221.8 million vs $157.1 million in the prior period (up 41.2%); net fair value gains of $155.9 million driven by improved rental income and cap rate compression of 13 basis points to a weighted average cap rate of 5.27%.
Read all positive updates
Company Guidance
Management reaffirmed FY26 guidance of total distributions of $0.1941 per security (up 4.1% on FY25’s $0.1865) and declared an interim distribution of $0.0958 payable 27 Feb 2026; half‑year FFO was $70.4m (up 6% YoY) with distributions at 98.6% of FFO and a target payout range of 90–110% of FFO. They expect FY26 capital expenditure of $60–70m (with stay‑in‑business CapEx ~ $10–15m), repurposing yield‑on‑costs of 10%+, 93 leases due for CPI/fixed increases in H2 (additive to 73 in H1) and three Bunnings market rent reviews to be completed in H2. Key balance‑sheet and portfolio metrics supporting the guidance: gearing 24.7% (board preferred 20–30%), WALE 7.5 years (up 3.1 years pcp), occupancy 96.7%, weighted average cap rate 5.27% (‑13bps) and a $155.9m valuation uplift; they completed a $300m 5‑year MTN, report a 4.4% weighted average cost of debt, Moody’s A3 (stable) rating, and have sufficient liquidity to cover a $150m bond maturing April 2026 — guidance remains subject to no major disruption to the Australian economy or market conditions.BWP Trust Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 206.29M | 202.70M | 174.46M | 158.16M | 153.27M | 152.24M |
| Gross Profit | 180.54M | 168.51M | 145.59M | 131.11M | 129.38M | 129.70M |
| EBITDA | 323.09M | 300.61M | 205.67M | 53.41M | 128.48M | 128.95M |
| Net Income | 330.26M | 265.58M | 180.22M | 36.69M | 486.64M | 263.17M |
Balance Sheet | ||||||
| Total Assets | 4.11B | 3.75B | 3.59B | 2.96B | 3.02B | 2.67B |
| Cash, Cash Equivalents and Short-Term Investments | 54.42M | 26.46M | 27.30M | 16.83M | 11.86M | 33.07M |
| Total Debt | 980.50M | 808.16M | 771.60M | 466.00M | 452.70M | 471.10M |
| Total Liabilities | 1.08B | 906.29M | 878.78M | 554.31M | 535.58M | 558.19M |
| Stockholders Equity | 3.03B | 2.84B | 2.71B | 2.41B | 2.49B | 2.12B |
Cash Flow | ||||||
| Free Cash Flow | 126.15M | 119.78M | 128.76M | 119.75M | 111.04M | 112.35M |
| Operating Cash Flow | 126.15M | 119.78M | 128.76M | 119.75M | 111.04M | 112.35M |
| Investing Cash Flow | -154.15M | -25.40M | -23.14M | -10.15M | 4.35M | 2.54M |
| Financing Cash Flow | 54.50M | -95.22M | -95.16M | -104.62M | -136.60M | -146.01M |
BWP Trust Technical Analysis
Positive
3.87
Price Trends
3.76
Positive
3.79
Positive
3.69
Positive
Market Momentum
0.02
Negative
65.76
Neutral
86.74
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 3.87 is above the 20-day moving average (MA) of 3.71, above the 50-day MA of 3.76, and above the 200-day MA of 3.69, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 86.74 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$2.59B | 2.94 | 11.96% | 6.09% | 5.78% | 79.44% | |
73 Outperform | AU$3.03B | 3.21 | 11.25% | 4.87% | 7.04% | 11.89% | |
70 Outperform | AU$2.62B | 3.79 | 10.68% | 5.61% | 24.34% | 131.89% | |
70 Outperform | AU$1.87B | 7.50 | 5.63% | 4.85% | 2.44% | 42.65% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$2.20B | 2.46 | 12.47% | 7.72% | 18.68% | 105.99% | |
54 Neutral | AU$2.50B | 4.72 | 6.69% | 6.14% | 33.58% | ― |
* Real Estate Sector Average
AU:BWP
BWP Trust
3.86
0.37
10.70%
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BWP Trust Corporate Events
BWP Group Raises $122m From Strongly Supported Institutional Entitlement Offer
May 7, 2026
BWP Group has successfully completed the institutional component of its fully underwritten 1-for-12 accelerated non-renounceable entitlement offer, raising about $122 million at an issue price of $3.77 per new security. The offer saw a take-up rat...
BWP Trust Launches Accelerated Entitlement Offer to Fund Growth
May 6, 2026
BWP Trust has outlined plans for an accelerated non-renounceable pro rata entitlement offer of new stapled securities to eligible institutional and retail securityholders. The capital raising will be conducted via separate institutional and retail...
BWP Trust Launches $228m Equity Raise to Fund Large Format Retail Growth
May 6, 2026
BWP Group has launched a fully underwritten 1-for-12 accelerated non-renounceable entitlement offer to raise about $228 million at $3.77 per new security, aimed at funding a $163 million pipeline of accretive developments, asset expansions and upg...
BWP Group Seeks ASX Quotation for New Stapled Securities
Mar 25, 2026
BWP Group has applied for quotation on the ASX of 56,324 fully paid stapled ordinary securities to be issued on 26 March 2026. The new securities are being issued under a dividend or distribution plan, signalling that existing holders are reinvest...
BWP Group Seeks ASX Quotation for New Stapled Securities Issued Under Distribution Plan
Feb 23, 2026
BWP Group has applied to the ASX for quotation of 297,744 fully paid ordinary stapled securities to be issued on 27 February 2026. The new securities are being issued under a dividend or distribution plan, modestly increasing the trust’s equ...
BWP Trust Outlines Tax Components of Half-Year Distribution as AMIT
Feb 20, 2026
BWP Trust has confirmed its status as an Attribution Managed Investment Trust for the financial year ending 30 June 2026 and detailed the tax components of its half-year distribution for the period to 31 December 2025. The trust announced a cash d...
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.