Highlights

• BWP delivered stronger FY26 earnings as rental growth, lower operating costs and management internalisation supported underlying performance.
• Portfolio quality remained firm, with high occupancy, a longer lease profile and improved property valuations strengthening asset metrics.
• Capital raising and refinancing initiatives reduced gearing and increased financial flexibility for development, acquisitions and portfolio renewal.

FY26 Earnings Show Further Improvement

BWP Group (ASX: BWP) released its FY26 annual results on 19 August 2026, covering the year ended 30 June 2026. The property group benefited from rental growth, portfolio repositioning and lower operating costs following the internalisation of management.

Total income increased 3.0% to AU$209.3 million, while Funds from Operations rose 4.5% to AU$140.9 million. Statutory NPAT rose 53.8% year on year to AU$408.4 million, with higher property valuations contributing to the result. After removing valuation movements and one-off transaction expenses, NPAT was AU$140.2 million, representing 5.4% growth.

Portfolio Metrics Remain Resilient

At 30 June 2026, BWP owned 80 Australian investment properties valued at approximately AU$4.0 billion. Portfolio occupancy stood at 98.4%, while weighted average lease expiry extended to 7.3 years, strengthening longer-term income visibility.

The portfolio value increased by AU$257.0 million during FY26 to AU$3,961.8 million. The weighted average capitalisation rate improved to 5.25%, compared to 5.40% a year earlier. Net tangible assets also advanced 3.3% to AU$4.11 per security.

Balance Sheet Reset Improves Flexibility

BWP completed an approximately AU$228 million entitlement offer in May 2026, complementing debt refinancing undertaken during the year. Gearing declined to 18.5% from 21.6%, while unused debt facilities totalled AU$447 million at year-end.

Distributions Continue to Rise

The final FY26 distribution was set at 9.83 cents per security, taking the full-year distribution to 19.41 cents, an increase of 4.1% from FY25. The final distribution was due to be paid on 27 August 2026. For FY27, BWP guided to a distribution of 20.00 cents per security, provided there is no significant disruption to the Australian economy or material shift in market conditions.

Note- All data presented is based on information available at the time of writing.

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