Perth-based Bunnings Warehouse Property Trust has posted a 14 per cent fall in full-year net profit to $69.9 million amid a capital expenditure drive linked to the big-box battle between Wesfarmers' Bunnings and Woolworths' Masters home improvement chains.
BWP does not provide guidance for its half- or full-year results, but the lower profits and the 19.7 per cent rise in revenue to $102.1m were in line with analyst forecasts. The company used the proceeds from the sale of one of its Victorian properties to pay a special dividend of 1.17c for the period.
The special dividend took total distributions for the year to 14.67c, a 22.6 per cent increase on the 13.5c paid last year.
The market remained unmoved by the result, with BWP's shares inching up 0.5c to $1.94.
Over the year the company spent $106.8m purchasing five Bunnings Warehouses and $31.5m upgrading three existing properties.
General manager Grant Gernhoefer flagged a shift in company strategy that could result in more properties sold off as part of a portfolio-wide review.
"The trust hasn't historically been a natural seller of investment properties but it's inclined to consider this as the portfolio matures," he said.
Like-for-like rental growth across its portfolio of properties, which are mainly leased to Bunnings, was 3.7 per cent for the year.
The company said the rental growth was in line with expectations but to ensure diversification of revenues it would also look to acquire properties that were not leased to Bunnings. Mr Gernhoefer said BWP had not considered purchasing any properties leased to Bunnings' rival Masters that had been put on the market by Woolworths.
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