Bwp Trust · ASX:BWP
Bwp Trust — FY2002 Earnings Presentation
21 slides from Bwp Trust's earnings presentation, Aug 28, 2002
Slide 1: Full Year Results, Year Ended 30 June 2002
FULL YEAR RESULTS YEAR ENDED 30 JUNE 2002 Investor Presentations 28-29 August 2002
Slide 2: Presentation format
Presentation format ¾ Presenters – Andrew Hopkins, Manager – Gene Tilbrook, Director ¾ Outline – Results – Capital management – Portfolio/development – The tenant – Outlook August 2002 2 2
Slide 3: Results - highlights
Results - highlights ¾ Full year distribution 9.77 cpu 6.4% on pcp ¾ Property assets $348.3m 21.4% on pcp ¾ NTA $1.10 per unit 7.8% on pcp ¾ Gearing 23.1% 28.3% on pcp ¾ MER 0.76% 3.8% on pcp ¾ Market capitalisation $296m 41.8% on pcp Note: all as at 30 June 2002 August 2002 3 3
Slide 4: Results – historical comparison (full year)
Results – historical comparison (full year) 19991 2000 2001 2002 Total income $m 11.5 18.6 23.1 29.0 Operating profit $m 9.5 13.9 16.5 21.1 Total assets $m 186.1 244.1 288.0 348.7 Borrowings $m 50.8 63.1 92.7 80.7 Unitholders’ equity $m 128.9 173.2 185.9 255.1 NTA per unit $ 0.98 0.98 1.02 1.10 MER
Slide 5: Results – comparison with Prospectus forecast
Results – comparison with Prospectus foreceast Prospectus Actual Revenue $000 15,187 15,311 124 Expenses Management fee $000 1,002 1,010 8 Interest $000 2,521 2,482 (39) Other $000 371 323 (48) Total $000 3,894 3,815 (79) Operating profit $000 11,293 11,496 203 Units on issue m 231.2 231.6 0.4 DPU c
Slide 6: Results – historical distribution growth
Results – historical distribution growth 6 End of concessional management fee 5 4 CPU 3 2 1 0 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 August 2002 6 6
Slide 7: Results – portfolio growth $61m
Results – portfolio growth $61m ¾ Developments ($38m) – 5 new Bunnings Warehouses – 2 expansions ¾ Acquisitions ($11m) – 1 completed Bunnings Warehouse – 1 development site ¾ Revaluations ($12m) – 14 properties August 2002 7 7
Slide 8: Results – 14 properties revalued up 16%
Results – 14 properties revalued up 16% Property Book value Current market Change 1Current (price plus costs) value % valuation yield $000 $000 Balcatta, WA 11,752 11,700 -0.4 9.00% Bibra Lake, WA 8,341 8,650 +3.7 9.25% Mentone, Vic 9,925 12,100 +21.9 9.50% Broadmeadows, Vic 7,604 8,450 +11.1 9.75%
Slide 9: Results – market outperformance
Results – market outperformance Total return to BWP unitholders of 21.4% in year to 30 June 2002 130 125 120 115 110 105 100 95 90 85 80 1 01 1 2 2 2 02 02 2 01 1 1 -0 0 -0 0 -0 -0 -0 -0 l- g- r- n- b- p- ov n ar ay ec ct Ju p u Ju Ja Fe Se O A M N D A M S&P/ASX 200 Property Trust Accumulation Index
Slide 10: Capital management - overview
Capital management - overview ¾ Equity raisings – $23.9m placement (September 2001) – $29.5m one for eight rights issue (October 2001) – fund acquisitions/developments and reduce debt ¾ Borrowings (currently $80.7m) – 23% gearing within preferred range of 20% to 40% – 90% hedged, weighted average 6.
Slide 11: Capital management – gearing on target
Capital management – gearing on target 50% 40% 30% Preferred range 20% 10% 0% Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 August 2002 11 11
Slide 12: Capital management – debt actively managed
Capital management – debt actively managed BWP Hedge Book Overview Jun 99 Jun 00 Jun 01 Jun 02 % actual debt hedged 87% 86% 77% 90% Swap rates - maximum 5.87% 6.615% 6.635% 6.635% - minimum 5.56% 5.56% 5.46% 5.46% 30 June 2002: 6.2% weighted average (exc. margins and fees) August 2002 12 12
Slide 13: Portfolio/development – steady growth in assets
Portfolio/development – steady growth in assets 400 350 300 250 $m 200 150 100 50 0 1999 2000 2001 2002 At cost Revaluations August 2002 13 13
Slide 14: Portfolio/development – diversification
Portfolio/development – diversification 9 6 2 3 1 17 1 includes 2 development sites August 2002 14 14
Slide 15: Portfolio/development – the process
Portfolio/development – the process ¾ Tenant identifies site – visible, accessible/usually industrial land – typically 3 hectares/significant catchment area – option to purchase ¾ Offer made to BPML – full development proposal – BPML investment criteria applied – not all properties offered/not all o
Slide 16: The tenant – BBS performing strongly
The tenant – BBS performing strongly 3500 350 3000 300 SMI acquisition 2500 250 Sales ($m) EBIT ($m) 2000 200 BWP established 1500 150 1000 100 500 50 0 0 1995 1996 1997 1998 1999 2000 2001 2002 Sales EBIT (pre Goodwill) August 2002 16 16
Slide 17: The tenant – integration of SMI acquisition
The tenant – integration of SMI acquisition ¾ Operations focus nearing completion – re-branding – merchandising – systems and support activities – review of non-core operations August 2002 17 17
Slide 18: The tenant – sales from Warehouses >75% of total
The tenant – sales from Warehouses >75% of total BBS store numbers Warehouses Other Total As at 30 June 2001 471 39 86 Add: Acquired from SMI 602 120 180 Add: Store openings 71 2 9 Less: Store closures (3) (29) (32) As at 30 June 2002 111 132 243 1 35 owned by BWP 2 includes 18 properties August 200
Slide 19: The tenant – average 12.1 years to lease expiry
The tenant – average 12.1 years to lease expiry 20 16 Number of leases 12 8 4 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Term to lease expiry (years) ¾ Lease components – 5 + 5 + 5 (plus 2 x 5 year options) – automatic annual CPI escalation – 5 year market reviews (to commence September 2003) – some ratc
Slide 20: The outlook for BWP is positive
The outlook for BWP is positive 2002/03 2003/04 2004/05 2005/06 2006/07 Revaluations1 6 4 27 6 4 Rent reviews - 20 7 1 7 BBS rollout 8-12 8-12 8-12 8-12 8-12 1 assuming a 3 year revaluation schedule ¾ BWP developments on the drawing board – Dandenong (December 2002) – Maribyrnong (December 2003) ¾ P
Slide 21: www.bunningspropertytrust.com.au
www.bunningspropertytrust.com.au August 2002 21 21