Morningstar | Revenue Headwinds Persist, but Distributions Should Grow
BWP’s portfolio consisting of 66 properties core to the Bunnings business should underpin its defensive rental income stream. Its also set to benefit from increased reliance by Wesfarmers on Bunnings after the IPO of Coles and divestment of Wesfarmers UK home improvement business. Although the trust’s near-term rents may be impacted by factors such as Bunnings relocating to ex-Masters stores, it has been generally successful in repositioning or divesting these properties. It should also get an incremental boost in rental from some planned upgrades and along with recent realised profits from divestments, we expect it to maintain and gradually grow its distributions. There also continues to be significant investor demand for warehouse properties but it has sensibly not acquired new property at record low cap rates. However, its strong balance sheet provides it with the flexibility to do so if opportunities arise.BWP Trust is a real estate investment trust, investing in and managing commercial properties throughout Australia. Co. invests in properties with long-term leases to substantial tenants, predominantly in the bulky goods retail sector. The majority of Co.'s properties are retailing properties, in particular, Bunnings Warehouses, leased to Bunnings Group Limited.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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