Citi upbeat on Aussie BWP Trust's property divestment plan

BWP Trust

10/10/2023 23:31

** Analysts at Citi expect Australian property manager BWP
Trust  BWP.AX  to continue recycling capital into higher
returning assets
    ** BWP earlier in the week had announced property divestment
in Wollongong, Australia for A$40 mln
    ** Citi estimates the sale at cap rate of ~5.4%, in line
with BWP's cap rate disclosed during June'23 results
    ** The capital proceeds from this divestment, along with
other acquisitions, will help company in covering acquisitions
and increased up-gradations and redevelopment costs - Citi
    ** BWP's gearing remains relatively prudent compared to peer
group, but relatively stable compared to company's last
reporting period, says brokerage
    ** Shares down 13% YTD, as of last close 

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com))