Why Are These Stocks under Spotlight- BWP Trust, Janus Henderson, SCA Property?

  • Feb 05, 2020 AEDT
  • Team Kalkine
Why Are These Stocks under Spotlight- BWP Trust, Janus Henderson, SCA Property?

In the last few years, the Australian economy has been exemplified by reducing interest rates, low inflation, and a relatively benign GDP growth while it faces a climate calamity.

Finally, the first reporting season of the new decade for listed companies on the Australian Securities Exchange (ASX) is here! After the exchange posted record highs and lows through January and businesses were adversely affected by the perilous bushfires, both investors and media houses have been keenly eying this reporting season.

With the entire exchange under global spotlight for reasons both good and bad, we have cherry-picked three companies to let readers know the latest buzz surrounding them-

BWP Trust Reveals Results for the Half-Year Ended 31 December 2019

BWP Trust (ASX:BWP) is a real estate investment trust that invests and manages commercial properties across Australia. The Company has a diverse and well-located property portfolio, robust regardless of the external economic environment.

The Company has been an investor in Bunnings Warehouse properties for a long time, which have been subject to constant evolution of late.

At present, BWP owns 75 properties, 67 core and 8 being transitioned from Bunnings-leased properties to other purposes. These are large sites, with good access and visibility, and located in high population areas.

The Company recently declared its half-year results for the period ending 31 December 2019, with the following highlights-

  • Net profit for the six months was $135.6 million
  • Total revenue amounted to $76.2 million
  • Distributable amount was $57.9 million and Interim distribution was 9.02 cents per unit
  • BWP witnessed Like-for-like rental growth of 2.2% (for the 12 months to 31 December 2019)
  • $2.5 billion portfolio valuation (as at 31 December 2019)
  • Net tangible assets of $3.04 per unit (as at 31 December 2019)
  • The Company generated a total unit holder return of 16.8% (for the 12 months to 31 December 2019)

The full year distribution for year ending 30 June 2020 is likely to be around 1% over the ordinary distribution paid for the year ended 30 June 2019.

BWP’s short-term focus pertains to achieving good outcomes for any properties vacated or likely to be vacated by Bunnings. In the future, the Company expects stable demand for Bunnings Warehouse properties and further rental growth (annual CPI and fixed rent reviews).

Moreover, the Company will continue to look for opportunities to expand its portfolio, focussing on long term rental growth, occupancy with higher and better use over time.

Janus Henderson Group Issues CDIs

A leading global active asset manager, Janus Henderson Group Plc (ASX:JHG) helps clients to achieve long-term financial goals by offering products and strategies at reasonable fees.

As on 30 September 2019, the Company had $356.1 billion worth assets under management. It had 28 offices globally with over 2,000 employees. It is dual listed on the ASX and NYSE.

On 4 February 2020, JHG notified that for January 2020, the Company’s total number of CDIs quoted on the ASX were 39,616,857, the CDI ratio being 1:1.

Moreover, the Company is expected to announce its fourth quarter and full-year 2019 results shortly.

Shopping Centres Australasia Property Group Declares 1H20 Results

Shopping Centres Australasia Property Group (ASX:SCP) comprises of the stapled securities in Shopping Centres Australasia Property Management Trust as well as Shopping Centres Australasia Property Retail Trust (and controlled entities).

Recently, the Company announced its results for the six months ended 31 December 2019. CEO Anthony Mellowes believes that the Company’s anchor tenants continue to perform well, with supermarket and discount department store MAT sales growth continuing to improve over the last six months and turnover rent also increasing.

The specialty tenants have been showcasing resilience with improved specialty sales growth, increased sales productivity, reduced specialty vacancy and occupancy cost currently at 9.8%.

Other highlights of the half-year report consist of the following-

  • Statutory net profit after tax amounted to $90.2 million, zoomed up by 129.5% compared to the prior corresponding period (pcp)
  • Funds From Operations (FFO) were $78.5 million, up by 19.1% on pcp
  • Distribution of 7.50 cpu, up by 3.4% on pcp and with a payout ratio of 89%
  • Investment property portfolio value amounted to $3,232.8 million, up by $85.8 million since 30 June 2019
  • Net tangible assets of $2.29 per unit as at 31 December 2019, up by 0.9% from $2.27 (as at 30 June 2019)
  • SCP had a portfolio specialty vacancy rate of 4.8% of GLA (as at 31 December 2019)
  • During the period, the Company concluded the acquisition of Warner Marketplace in Brisbane QLD for $78.4 million along with the development of Shell Cove Stage 3 NSW for $4.8 million.

The Company’s strategy is biased towards non-discretionary categories to ensure sustainable tenants paying sustainable rents. SCP has been maintaining high retention rates on renewals and reducing specialty vacancy by focusing on difficult long-term vacancies.

In FY20, SCP will aim to-

  • Execute further acquisitions of convenience-based shopping centres,
  • Recycle capital from lower growth assets to relatively higher growth assets
  • Invest in value enhancing development opportunities within its existing portfolio
  • Grow the funds management business subject to market conditions
  • Also, the guidance for FY20 FFO is 16.90 cpu

Share Price Information

After the close of trading hours on 5 February 2020, the benchmark index S&P/ASX 200 built the investor sentiment positively. The index closed high at 6976.1, up by 0.4% or 27.4 basis points from the last close. Most of the sectors closed in green, except consumer staples, financials, utilities, communication services and banks.

The below table highlights the stance of the three discussed stocks in the article, after the close of the market on 5 February 2020-

With several companies announcing their quarterly / half yearly results currently, the ASX has been spurring investor interest from within and outside the Australian borders.

To read more about the ongoing reporting season in the country, we encourage you to read- Four Things to Keep in Mind for this Reporting Season.


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