BWP Trust (AU:BWP)
ASX:BWP
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BWP Trust
(Sydney:BWP)
Select Model
Select Model
Rating:69Neutral
Price Target:
AU$4.00
▲(7.82% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
BWP Trust (BWP) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.69B
Dividend Yield4.87%
Average Volume (3M)1.03M
Price to Earnings (P/E)3.2
Beta (1Y)0.44
Revenue Growth16.53%
EPS Growth36.39%
CountryAU
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.31
Shares Outstanding724,732,670
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$3.91Price Target Upside5.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$204.38M
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 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 b...
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
3.71
Price Trends
3.75
Negative
3.79
Negative
3.68
Positive
Market Momentum
-0.03
Negative
49.19
Neutral
31.88
Neutral
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 3.71 is above the 20-day moving average (MA) of 3.70, below the 50-day MA of 3.75, and above the 200-day MA of 3.68, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.19 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 is Neutral, 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$2.52B | 2.94 | 11.96% | 6.09% | 2.70% | 205.08% | |
70 Outperform | AU$2.57B | 3.79 | 10.68% | 5.61% | 0.03% | 1135.14% | |
70 Outperform | AU$1.82B | 7.50 | 5.63% | 4.85% | 4.39% | 176.52% | |
69 Neutral | AU$2.69B | 3.21 | 11.25% | 4.87% | 16.53% | 36.39% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$2.16B | 2.46 | 12.47% | 7.72% | -9.69% | 1142.57% | |
54 Neutral | AU$2.40B | 4.72 | 6.69% | 6.14% | -9.63% | ― |
* Real Estate Sector Average
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BWP Trust Corporate Events
BWP Group Updates DRP Pricing for December 2025 Distribution
Jan 22, 2026
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 distrib...
BWP Group Corrects ASX Notice on Unquoted Equity Securities
Dec 24, 2025
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 ...
BWP Group Grants Managing Director 158,668 Performance Rights Under Incentive Plan
Dec 24, 2025
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 Sca...
BWP Group Issues New Unquoted Securities Under Employee Incentive Plan
Dec 24, 2025
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 trus...
BWP Trust Sets Date for Half-Year Results and Investor Briefing
Dec 24, 2025
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 hos...
BWP Director Fiona Harris Lifts Indirect Stake With On‑Market Purchase
Dec 19, 2025
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 spous...
BWP Trust Reports $156 Million Property Revaluation Gain and Strategic Transactions
Dec 15, 2025
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 acquis...
BWP Group Updates Dividend Distribution Process
Dec 5, 2025
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 re...
BWP Trust Announces Increased Distribution and Reinstates Reinvestment Plan
Dec 4, 2025
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...
BWP Trust Announces New Distribution for Stapled Securities
Dec 4, 2025
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...
BWP Trust Appoints New Director, Timothy James Bult
Dec 1, 2025
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...
BWP Trust Announces Leadership Changes with New Chair and Director
Nov 27, 2025
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 ...
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.