BWP’s profit fell by 93% in FY23, but here’s why investors weren’t panicking
Nick Sundich, August 2, 2023
When company’s profits fall by 92%, most shareholders would be panicking – but this was not the case with BWP Trust (ASX:BWP).
SIGN UP FOR THE STOCKS DOWN UNDER NEWSLETTER NOW!
BWP Trust’s profit falls by 93%, but other metrics holding up
BWP recorded a $487m profit from ordinary activities in FY22, but this dropped to just $36m in FY23. This was mostly because of the fall in the property market – it made a $372m gain in FY22, but a $77m loss in FY23. Although this was a big swing, shareholders might be forgiven for thinking things could’ve been worse given the state of the property market.
Its total property portfolio was only down 2.2% (by $64.6m) to $2.9bn. The NTA (Net Tangible Assets) only fell by 3% from $3.75 to $3.87 and its revenues from ordinary activities (rent) rose by 3.2% from $153m.
Delivering where it counts
But most importantly, BWP paid the same distribution it did last year, paying $0.1829 per share, representing a ~5% yield. And ultimately, the main reason investors buy and hold REITs is for the dividends. In that respect, BWP has more than delivered with its results.
BWP (ASX:BWP) share price chart, log scale (Source: TradingView)
BWP shares are down 15% this year, but only retreated 1% this morning. Overall, things could have been a lot worse for this company.
Stocks Down Under Concierge is here to help you pick winning stocks!
The team at Stocks Down Under have been in the markets since the mid-90s and we have gone through many ups and downs. We have written about every sector!
Our Concierge BUY and SELL service picks the best stocks on ASX. We won’t just tell you what to buy – we give you a buy range, price target and stop loss level in order to maximise total returns. And we will only recommend very high conviction stocks where substantial due diligence has been conducted.
Our performance is well ahead of the ASX200 and All Ords.
You can try out Concierge … for FREE.
GET A FREE TRIAL TO CONCIERGE TODAY
There’s no credit card needed – the trial expires automatically.
Blog Categories
Recent Posts
How do analysts value stocks? Here are 3 key ways to judge what a stock is worth
In this article we answer the question ‘How do analysts value stocks?‘ By knowing how they do it, you can…
Corporate Advisors: What do they do for your stock and are they worth the dazzling fees?
Most small cap ASX stocks will have corporate advisors (one or multiple). At first glance, you may think of them as…
The RIU Sydney Resources Round Up 2024: These are 5 of the most intriguing stocks
Last week saw one of the biggest resources sector conferences of the year – the RIU Sydney Resources Round Up.…