BWP Trust : Half-year results to 31 December 2018

6 February 2019

The Manager

Market Announcements Office Australian Securities Exchange 20 Bridge St

Sydney NSW 2000

Dear Sir

BWP Trust results for the half year ended 31 December 2018

In accordance with ASX Listing Rule 4.2A, the following documents are attached for release to the market:

 Appendix 4D - half-year results to 31 December 2018; and  Half-Year results announcement.

Released separately, but immediately following, will be the:

•  Half-Year Report to Unitholders (contains the Business Review and Financial Statements)

•  Half-Year Results Investor Presentation.

It is recommended that the Half-Year Report is read in conjunction with the Annual Report of BWP Trust for the year ended 30 June 2018, together with any public announcements made by BWP Trust in accordance with its continuous disclosure obligations arising under the Corporations Act 2001.

An investor/analyst briefing teleconference call, with a question and answer session, will be held on 6 February 2019 at 8:30am AWST (11:30am EDST).

Investors and analysts wishing to participate should dial 1800 175 864 from within Australia ([phone] from outside Australia) and ask to join the BWP Trust Half-Year Results Investor Presentation (conference ID number 4191557). This briefing is recorded and made available via our website.

Yours faithfully

Karen Lange Company Secretary

APPENDIX 4D

FINANCIAL HALF-YEAR ENDED 31 DECEMBER 2018

6 months to	6 months to
RESULTS FOR ANNOUNCEMENT TO THE MARKET	31 Dec 18	31 Dec 17	Variance %
Revenue from ordinary activities	$000	79,028	76,933	3
Profit before gains on investment properties	$000	58,784	56,437	4
Gains in fair value of investment properties	$000	20,113	46,921	(57)
Profit from ordinary activities attributable to unitholders	$000	78,897	103,358	(24)
Net tangible assets per unit	$	2.89	2.82	2
DISTRIBUTIONS
Interim distribution paid	$000	57,365	56,401	2
Interim distribution per unit	cents	8.93	8.78	2

Record date for determining entitlements to the interim distribution

31 December 2018

Payment date for interim distribution

22 February 2019

There is no conduit foreign income included in the distribution above.

Distribution Reinvestment Plan

The Distribution Reinvestment Plan ("DRP") was in effect for the half-year ended 31 December 2018 and will apply to future distributions unless notice is given of its suspension or termination.

Applications to participate in or to cease or vary participation in the DRP were required to be correctly completed and lodged by 5.00pm (AWST) on 2 January 2019 if they were to apply to the interim distribution for 2018/19. Forms received after that time will be effective for subsequent distributions only.

Units allocated under the DRP in respect of the interim distribution for 2018/19 will be allocated at $3.65 per unit, representing no discount to the average of the daily volume weighted average unit price for the 20 consecutive trading days from and including 4 January 2019 to 1 February 2019.

Commentary on the results for the period

The commentary on the results for the period is contained in the ASX release dated 6 February 2019 accompanying this statement.

This report should be read in conjunction with the most recent annual financial report of the Trust and any announcements made during the period by or on behalf of the Trust in accordance with the continuous disclosure requirements of the Corporations Act 2001 and the ASX Listing Rules.

For further information please contact:

Michael Wedgwood

Managing Director

BWP Management Limited

Telephone: [phone]

E-mail:[e-mail]

HALF-YEAR RESULTS TO 31 DECEMBER 2018

The directors of BWP Management Limited, the responsible entity for the BWP Trust ("the Trust"), today announced the results of the Trust for the six months to 31 December 2018.

Half-year highlights

•  Distributable amount of $57.4 million for the six months - up 1.7 per cent on the previous corresponding period

•  Interim distribution of 8.93 cents per unit - up 1.7 per cent on the previous corresponding period

•  Like‐for‐like rental growth of 2.5 per cent for the 12 months to 31 December 2018

•  Weighted average lease expiry of 4.3 years as at 31 December 2018 with 99.1 per cent leased

•  Gearing (debt/total assets) 18.4 per cent as at 31 December 2018

•  Weighted average cost of debt of 4.3 per cent for the six month period

•  $2.4 billion portfolio valuation as at 31 December 2018

•  Net tangible assets of $2.89 per unit as at 31 December 2018

Results summary
Half‐year ended 31 December	2018	2017
Total income	$m	79.0	76.9
Total expenses	$m	(20.2)	(20.5)
Profit before gains in fair value of investment properties	$m	58.8	56.4
Gains in fair value of investment properties1	$m	20.1	46.9
Net profit	$m	78.9	103.3
Less: gains in fair value of investment properties1	$m	(20.1)	(46.9)
Amounts credited to undistributed income reserve	$m	(1.4)	‐
Distributable amount for period	$m	57.4	56.4
Distribution per ordinary unit	cents	8.93	8.78
Total assets	$m	2,375.3	2,353.3
Borrowings	$m	437.9	465.5
Unitholders' equity	$m	1,854.4	1,810.6
Gearing (debt to total assets)	%	18.4	19.8
Number of units on issue	m	642	642
Number of unitholders	21,305	23,503
Net tangible assets backing per unit	$	2.89	2.82
Unit price as 31 December	$	3.53	3.09
Management expense ratio2 (annualised)	%	0.62	0.61

• 1. FY17/18 includes realised gain on disposal of investment properties of $2.5 million.

• 2. Expenses other than property outgoings and borrowing costs as a percentage of average total assets.

Total income for the period was $79.0 million, an increase of 2.7 per cent over the previous corresponding period. As required by IFRS 16 Leases, the Trust has commenced straight-lining rent, which resulted in rental income increasing by $2.5 million for the period. This partially offset the impact of rent foregone from divestments and the redevelopment of sites vacated by Bunnings that occurred during prior periods.

Finance costs of $10.0 million were 10.5 per cent lower than the previous corresponding six months, due to a lower weighted average cost of debt and lower borrowing levels. The weighted average cost of debt for the half-year (finance costs as a percentage of average borrowings) was 4.31 per cent, compared to 4.65 per cent for the previous corresponding period. The average level of borrowings was 3.2 per cent lower than the previous corresponding period ($460.8 million compared with $476.3 million). Average utilisation of debt facilities (average borrowings as a percentage of average facility limits) for the period was higher than for the previous corresponding period (83.0 per cent compared with 77.5 per cent).

Other operating expenses increased from $2.9 million in the previous corresponding period to $3.5 million in the current period, mainly as a result of a significant increase in Queensland Land Tax, and outgoings for properties in the process of being redeveloped.

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