BWP Trust delivered FY21 fund from operations (FFO) largely in-line with the estimate of UBS. The DPS of 18.29 cents was aided by
$3.5m of support from capital.
The trust also provided guidance for a ‘similar’ distribution to FY21 with the proviso that capital profits may again be used to help support DPS. UBS retains its Sell rating and $3.86 target price.
Occupancy is 97.8% and the analyst suggests this will continue to remain under pressure as lease expiries average 10% per year, for the next five years. It’s assumed 1 in 6 leases will not be renewed and 12 months of downtime, which holds back rent growth.
Sector: Real Estate.
Target price is $3.86.Current Price is $4.01. Difference: ($0.15) – (brackets indicate current price is over target). If BWP meets the UBS target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
