BWP Trust may not see much distribution growth in next few years - Morningstar

BWP Trust

09/02/2023 01:40

** Analysts at Morningstar maintain fair value estimate of
A$3.60 on Australia's BWP Trust  BWP.AX  after the company
announced half results in line with estimates on Wednesday
    ** UBS says the property manager's first half distributable
profit was unchanged from the previous year after rent growth
was offset by higher management fees, interest costs, and
vacancies
    ** Brokerage does not expect much growth in the next few
years for the company as distributions have been flat for the
past three days
    ** Company's like-for-like rental growth was 3.9% in
December; UBS forecasts similar growth for the next few years 
    ** Expects BWP Trust to extract better terms in future, but
flags risk from properties in regional areas lacking pricing
power
    ** Stock fell over 5% in 2022
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))