Fund Manager Summary
BWP Trust (ASX:BWP) is navigating a transformative phase following the internalization of management, a move highlighted by fund managers Cromwell Funds Management and Endeavor Asset Management, which aims to align management incentives with unitholders’ interests. Recent comments emphasize improved operational efficiency, with cost savings projected at over $5 million annually and a dividend increase of 2% in FY26 due to the strategic lease resets for 62 Bunnings properties. These leases have extended the weighted average lease expiry (WALE) from 4.6 to 9.5 years, enhancing asset marketability and potentially increasing property values by around $50 million. While the shift to internal management is a substantial opportunity, risks remain, particularly regarding the reliance on the Bunnings tenant, which could impact assessments of long-term viability amid changing market conditions. Overall, managers view BWP as a compelling investment at a current unit price of $3.52, reflecting a 7% discount to pro-forma net tangible asset backing, driven by strong rental reviews and a favorable interest rate environment.
Source: Trading View
Commentary From The Managers
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Share Price
Summary
Date
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Thesis Tracker gives investors direct access to professional fund-manager commentary on ASX-listed companies, all in one structured database.
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By reporting on thousands of qualitative investment insights, Thesis Tracker helps investors make better decisions beyond just financial metrics.
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Trusted by active, Retail and Professional ASX investors, Thesis Tracker saves research time by surfacing institutional-grade perspectives that are difficult to find elsewhere.
Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Endeavor Asset Management
30 Sept 2025
$3.72
Summary
- Approval for management internalisation in August removes misalignment affecting sentiment.
- Share price expected to receive continued support following the internalisation.
- Peak capex anticipated in FY26 under the new structure.
- Developments will create long dated industrial rental opportunities once completed.
- BWP is benefiting from positive rent reviews and longer leases with Bunnings Warehouse.
- Steady growth in NTA is contributing to operational strength.
- A lower Australian cash rate is expected to positively impact funding costs and discount rates.
- The Balanced Portfolio currently provides a dividend yield just under 5%.
Cromwell Funds Management
8 Aug 2025
$3.64
Summary
- Cromwell Funds Management initiated a position in BWP Trust due to recent significant changes in management structure.
- The internalisation of management from Wesfarmers aligns interests directly with unitholders, enhancing governance.
- Cost savings of over $5 million annually are expected from the internal management structure.
- A lease reset extended the weighted average lease expiry (WALE) from 4.6 to 9.5 years, increasing property value by approximately $50 million.
- Longer leases improve asset quality and make properties more saleable.
- Cromwell Funds Management appreciates the commitment to $86 million in capital investment for property upgrades.
- BWP Trust is currently trading at a 7% discount to its pro-forma net tangible asset backing, presenting a potential opportunity.
- Historically, BWP has provided solid returns to shareholders, with a total return of 11.8% per annum since its IPO.
- Given these factors, Cromwell Funds Management believes BWP Trust represents a compelling investment opportunity.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in BWP Trust (ASX:BWP)?
Fund managers including Cromwell Funds Management and Endeavor Asset Management have invested in BWP Trust (ASX:BWP).
Why do fund managers invest in BWP Trust?
Fund managers invest in BWP Trust due to its strong asset portfolio primarily leased to Bunnings Warehouse, offering stability and growth potential. The recent internalization of management aligns interests more closely with unitholders, enhancing governance. Additionally, the recent lease resets extended the average lease term, increasing property values and making them more marketable. With a dividend yield nearing 5% and a favorable risk/reward profile, BWP positions itself attractively within the commercial property sector.
What happened to BWP Trust (ASX:BWP)?
Fund managers cite BWP Trust's recent management internalization as a key factor enhancing investor sentiment. With expectations of peak capital expenditure in FY26, the company is positioned for long-term growth through new industrial developments. Additionally, favorable rent reviews and extended leases with Bunnings Warehouse contribute to steady growth in net tangible assets (NTA). A declining Australian cash rate is anticipated to reduce funding costs, while the Balanced Portfolio offers a competitive dividend yield nearing 5%, making BWP Trust an attractive investment.
What is the short interest in BWP Trust (ASX:BWP)?
The short interest in BWP Trust (ASX:BWP) is 1.56% which makes it the 166th most shorted stock on the ASX. Of the 724.4M shares that BWP Trust has on issue, 11.3M have been sold short.
What does BWP Trust (ASX:BWP) do?
BWP Trust is part of Senetas Corporation Ltd., which provides cybersecurity and network solutions. The company designs, develops, manufactures, and sells IT security products to businesses and governments. It operates mainly through two segments: Senetas for product offerings and Votiro for solution technologies. Headquartered in South Melbourne, Australia, it serves both domestic and international markets.