BWP GROUP — Interim / Quarterly Report 2024

Feb 6, 2024

Half-year results to 31 December 2023 February 2024

==> picture [70 x 38] intentionally omitted <==

Important Notice

The information provided in this presentation should be considered together with the financial statements for the period and previous periods, ASX announcements and other information available on the Trust’s website.

This presentation has been prepared by BWP Management Limited as the responsible entity for BWP Trust. The information provided is for information purposes only and does not constitute an offer to arrange to issue securities or other financial products, nor is it intended to constitute legal, tax or accounting advice or opinion. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.

All reasonable care has been taken in preparing the information contained in this presentation, however no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. Without limiting the preceding sentence, no representation or warranty, express or implied, is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forwardlooking statements, forecasts, prospects or returns contained in this presentation. Such forward-looking statements, forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies, many of which will be outside the control of BWP Trust or BWP Management Limited. Also, past performance is no guarantee of future performance.

Before making an investment decision, you should conduct your own due diligence and consult with your own legal, tax or accounting adviser as to the accuracy and application of the information provided in this presentation and in respect of your particular investment needs, objectives and financial circumstances.

==> picture [60 x 32] intentionally omitted <==

2 HALF-YEAR RESULTS TO 31 DECEMBER 2023

Acknowledgement of Country

We acknowledge the Traditional Owners of Country throughout Australia and their continuing connection to lands and waterways upon which we depend. We pay our respects to their Elders, past and present.

==> picture [60 x 32] intentionally omitted <==

ACKNOWLEDGEMENT OF COUNTRY | HALF-YEAR RESULTS TO 31 DECEMBER 2023

3

Presentation outline

Mark Scatena

Managing Director BWP Management Limited

Andrew Ross

Head of Property BWP Management Limited

David Hawkins Head of Finance BWP Management Limited

Summary slides 5 - 7

Results slides 8 - 10

Optimise existing portfolio slides 11 - 16

Core portfolio slides 17 - 21

Portfolio growth slides 22 – 25

Alternative use properties slides 26 – 27 Portfolio renewal slides 28 - 29

Capital management slides 30 - 32

Outlook slides 33 - 35

Questions slide 36

Further information slide 37

==> picture [60 x 32] intentionally omitted <==

4 PRESENTATION OUTLINE | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Summary

BUNNINGS WAREHOUSE AND HOMEMAKER CENTRE BROADMEADOWS, VIC NOTE: THE SHADED AREA INDICATES AREA ACQUIRED IN SEPTEMBER 2023

==> picture [60 x 32] intentionally omitted <==

SUMMARY |HALF-YEAR RESULTS TO 31 DECEMBER 2023

5

2023/24 Half-year results HIGHLIGHTS

Value-adding acquisitions

• Leveraged strong capital position to acquire Southport Showrooms, QLD and Broadmeadows $3.74 Homemaker Centre, VIC for $10.0 million and $20.0 million, respectivelyNTA

• Both adjoining Trust-owned Bunnings Warehouses

Portfolio renewal

• Portfolio renewal activity demonstrated significant underlying land value, with agreements entered into for the divestment of Trust-owned ex-Bunnings Warehouses at Wollongong, NSW and Albany, WA for $40.0 million and $7.0 million, respectively

Proposed Merger of BWP and NPR

• Bid Implementation Deed (BID) entered with Newmark Property REIT (NPR) related to a proposal to merge NPR into BWP by way of an off-market takeover

• All-scrip transaction, with NPR securityholders to receive 0.4 BWP units for every NPR security held

• Bidder’s Statement despatch to NPR securityholders and opening of the offer on 8 February 2024

• Total equity value for NPR of $246.8 million[1] , with enterprise value acquired of $517.4 million[2]

• Creates a $3.5 billion property portfolio of 84 geographically diversified properties

1 Equity value is calculated by multiplying the Merger Price by the NPR securities on issue of 177.8 million. (As announced by BWP Trust on 24 January 2024).

2 Enterprise value is calculated by adding the equity value of $246.8 million with NPR’s net debt as at 31 December 2023. (As announced by BWP Trust on 24 January 2024).

==> picture [60 x 32] intentionally omitted <==

SUMMARY | HALF-YEAR RESULTS TO 31 DECEMBER 2023

6

2023/24 Half-year results OVERVIEW

==> picture [420 x 158] intentionally omitted <==

----- Start of picture text -----

4.8% 6 A- S&P rating
like-for-like rental growth market rent reviews (“MRR”)
finalised [3] A3 Moody’s rating
$4.2 million [4] 4.2% ▲ 17.1%
decrease in portfolio valuation Bunnings MRR outcome gearing
5.53% 4.4%
97.4%
portfolio cap rate cost of debt at 31 December 2023,
leased 4.2% weighted average for the period
3.6 years 2 51.5%
portfolio weighted average properties acquired during the hedging cover as at 31 December
lease expiry (“WALE”) period 2023
----- End of picture text -----

• 1 In comparison to prior corresponding period.

• 2 Source: UBS. Total returns include movement in security price and distributions (which are assumed to be reinvested). Annual compound returns.

• 3 Includes five Bunnings Warehouse properties.

• 4 Net movement including straight-lining of rent.

==> picture [60 x 32] intentionally omitted <==

SUMMARY | HALF-YEAR RESULTS TO 31 DECEMBER 2023

7

Results

BUNNINGS SPRINGVALE, VIC

==> picture [60 x 32] intentionally omitted <==

8 RESULTS |HALF-YEAR RESULTS TO 31 DECEMBER 2023

Financial performance

HALF-YEAR ENDED	31 Dec 2023	31 Dec 2022
INCOME & EXPENSES
Total income $m	82.3	78.6
Total expenses $m	(24.9)	(21.2)
Profit before gains/(losses) in fair value of investment properties $m	57.4	57.4
Amounts released from undistributed income reserve $m	0.5	0.6
Distributable amount $m	57.9	57.9
Management expense ratio (annualised)1 %	0.65	0.64
PORTFOLIO VALUATION & DISTRIBUTION
Property revaluation (losses)/gains2 $m	(4.2)	53.9
Net profit including property revaluations $m	53.2	111.3
Number of units on issue3 m	642	642
Distribution per ordinary unit cents	9.02	9.02
Number unitholders	22,521	23,770

• 1 Expenses other than property outgoings and borrowing costs as a percentage of average total assets.

• 2 After adjustments made for the straight-lining of rent.

• 3 As at the respective period end rather than for six months to.

==> picture [60 x 32] intentionally omitted <==

9 RESULTS | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Financial performance (continued)

HALF-YEAR ENDED		31 Dec 2023	31 Dec 2022
INVESTMENT & CASH GENERATION
Operating cash flow	$m	56.3	60.2
Capital expenditure (including repositioning costs)	$m	11.2	4.9
Acquisitions of investment properties	$m	32.0	1.5
Free cash flow	$m	13.1	53.8
CAPITAL STRUCTURE
Total assets1	$m	2,997.7	3,091.0
Borrowings1	$m	513.5	472.1
Unitholders’ equity1	$m	2,401.0	2,539.7
Net tangible assets1	$ per unit	3.74	3.95
Weighted average cost of debt2	% pa	4.2	3.3
Weighted average cap rate1	%	5.53	5.05
Gearing (debt to total assets)1	%	17.1	15.3

• 1 As at the respective period end rather than for six months to.

• 2 Finance costs divided by average borrowings for the six months.

==> picture [60 x 32] intentionally omitted <==

10 RESULTS | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Optimise existing portfolio

BUNNINGS RYDALMERE, NSW

==> picture [60 x 32] intentionally omitted <==

11 OPTIMISE EXISTING PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Bunnings market rent review

OUTCOMES

• Five Bunnings market rent reviews were finalised during the period

• Variance to passing rent of 4.2 per cent in HY2023/24 compares to average of prior three financial years (to 30 June 2023) of 0.7 per cent

Property location	Passing rent ($pa)	Reviewed rent ($pa)	Variance (%)	Effective date
Craigieburn, VIC1,2	1,826,683	1,945,000	6.5	6-May-22
Scoresby, VIC1,3	2,007,781	2,100,000	4.6	1-Jun-22
Artarmon, NSW3,4	1,759,616	1,825,000	3.7	9-Feb-23
Belrose, NSW3,4	2,174,284	2,225,000	2.3	9-Feb-23
Villawood, NSW3,4	2,056,305	2,140,000	4.1	15-May-23
Total/weighted average	9,824,669	10,235,000	4.2

• 1 The market rent review was due during the year ended 30 June 2022, but the outcome was only finalised during the current financial year

• 2 The market rent review was determined by an independent valuer.

• 3 The market rent review was agreed between the parties.

4 The market rent review was due during the year ended 30 June 2023, but the outcome was only finalised during the current financial year.

==> picture [60 x 32] intentionally omitted <==

OPTIMISE EXISTING PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

12

Lease covenant summary

AS AT 31 DECEMBER 2023

• Strong lease covenant mix

• Wesfarmers Group covenant coverage of 83.8 per cent compares to 86.4 per cent at 31 December 2022

Covenant	% of total rent
Wesfarmers Group	83.8
Commonwealth and State Governments	2.7
Other national retailers, automotive and self-storage businesses1	12.2
Remaining tenants	1.3
Total	100.0

1 Includes Amart, AP Eagers, Autobarn, Beacon Lighting, Chemist Warehouse, Crunch Fitness, Goodlife, Harvey Norman, Jaycar, Kennards Storage, Petbarn, Petstock, Pillow Talk, Repco, Spotlight, RSEA, Snooze, Super Retail Group, Sydney Tools, Trek, The Good Guys and Total Tools.

==> picture [60 x 32] intentionally omitted <==

OPTIMISE EXISTING PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

13

Capitalisation rate

OUTCOMES

Bunnings Collingwood is the only standalone Bunnings Warehouse transaction in the last 18 months

==> picture [678 x 347] intentionally omitted <==

----- Start of picture text -----

8.50%
8.00%
7.50%
7.00%
6.50%
6.00%
5.50%
5.00%
4.50%
4.00%
3.50%
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23
New Bunnings Store Transactions Secondary Market Bunnings Transactions BWP Cap Rate
----- End of picture text -----

14 OPTIMISE EXISTING PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Valuation summary DECEMBER 2023

• December 2023 weighted average capitalisation rate 5.53 per cent (Jun 2023: 5.38 per cent Dec 2022: 5.05 per cent)

• Valuation overview (HY2023/24)

• 11 independent valuations completed (16 per cent of BWP portfolio value) with average capitalisation rate 5.34 per cent

• 64 internal valuations completed with average capitalisation rate 5.57 per cent

• – Stand alone Bunnings Warehouses weighted average capitalisation rate of 5.37 per cent

Properties by state 31 Dec 2023	No. of properties	Rental $m/annum2	Cap rate (%)	Value ($m)
NSW/ACT	18	38.2	5.41	718.9
QLD SA	19 2	42.6 4.8	5.62 6.61	722.7 72.2
VIC	21	55.7	5.25	1,029.1
WA	15	26.1	6.08	429.8
Total/weighted average	75	167.4	5.53	2,972.7

1 Gross movement in valuations; statutory accounts reflect a $4.2 million revaluation loss after adjustments made for straight-lining of rent.

2 Subject to rounding.

• Capitalisation rate movement summary (seven properties decreased, 45 properties increased, no change on 21 properties) (excludes acquisitions)

• HY2023/24 gross fair value portfolio valuation decrease of $4.5[1 ] million

==> picture [60 x 32] intentionally omitted <==

OPTIMISE EXISTING PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

15

Valuations - independent

DECEMBER 2023

> Income growth more than offset 14 basis point capitalisation rate expansion

		Jun 2023	Jun 2023	Dec 2023	Dec 2023	Cap rate	Valuation	Dec 2023
Property	State	Cap Rate	Valuation	Cap Rate	Valuation	movement	movement	Term Certain
		(%)	($m)	(%)	($m)	(%)	($m)	(years)
Artarmon	NSW	4.75	37.0	5.00	36.5	0.25	(0.5)	4.1
Belrose	NSW	5.00	43.5	5.00	44.5	-	1.0	4.1
Browns Plains	QLD	5.50	59.3	5.50	59.1	-	(0.2)	6.7
Cairns	QLD	6.50	10.3	7.75	11.0	1.25	0.7	2.9
Greenacre	NSW	4.75	62.2	5.00	59.1	0.25	(3.1)	3.3
Hawthorn	VIC	4.75	68.8	5.00	76.7	0.25	7.9	1.8
Mt Gravatt	QLD	5.50	24.8	5.50	25.3	-	0.5	2.0
Northland	VIC	6.50	33.2	6.25	37.5	(0.25)	4.3	1.6
Nunawading	VIC	4.75	60.1	4.75	59.6	-	(0.5)	1.1
Rockingham	WA	5.25	45.2	5.50	45.8	0.25	0.6	3.8
Port Kennedy	WA	8.00	10.0	8.00	10.0	-	-	8.5
Total/average		5.20	454.4	5.34	465.1	0.14	10.7	3.2

Figures subject to rounding.

==> picture [60 x 32] intentionally omitted <==

16 OPTIMISE EXISTING PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Core portfolio

BUNNINGS PORT MELBOURNE, VIC

==> picture [60 x 32] intentionally omitted <==

17 CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Core portfolio SUMMARY

==> picture [508 x 318] intentionally omitted <==

----- Start of picture text -----

3.2 ha
66 3.7 years
average land
core [1] properties portfolio WALE
area
66%
13,851 m [2] 83%
upgrade
average lettable metro located
properties or
area
properties
occupied <15yrs
5.4%
weighted
average cap rate
----- End of picture text -----

1 Core properties represent those properties with stable long-term leases in place. Excludes properties held for sale.

==> picture [60 x 32] intentionally omitted <==

CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

18

Core portfolio

WEIGHTED AVERAGE LEASE EXPIRY PROFILE

• Near term expiries weighted towards Bunnings Warehouses with less than 15 years of total occupancy

• Bunnings exercised five options during the period

==> picture [621 x 313] intentionally omitted <==

----- Start of picture text -----

30%
25%
20%
15%
10%
5%
0%
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 Beyond
Showrooms BWH >15 years occupancy BWH <15 yrs occupancy or upgrades
% of Rental Income
----- End of picture text -----

==> picture [60 x 32] intentionally omitted <==

CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

19

Core portfolio

BUNNINGS LEASE EXPIRIES (CALENDAR YEARS 2024 TO 2026)

Property	Lease expiry	Options (years)	Rent ($’000pa)	Comments
Thornleigh	Sep 2024	2 x 5 (10)	1,642	Notification required by Jun 2024
Maitland	Oct 2024	2 x 5 (10)	1,679	Notification required by Jul 2024
Bibra Lake	Oct 2024	1 x 5 (5)	1,946	Notification required by Jul 2024
Fyshwick	Dec 2024	1 x 5 (5)	1,505	Notification required by Sep 2024
Nunawading	Feb 2025	1 x 10 (10)	2,782	Notification required by Nov 2024
Mile End	Mar 2025	1 x 10 (10)	2,862	Notification required by Dec 2024
Morayfield	Mar 2025	1 x 10 (10)	2,116	Notification required by Dec 2024
Vermont South	Aug 2025	3 x 5 (15)	2,588	Notification required by May 2025
Arundel	Sep 2025	5 x 6 (30)	2,849	First option, notification required by Sep 2024
Bethania	Sep 2025	5 x 6 (30)	2,317	First option, notification required by Sep 2024
Rocklea	Oct 2025	4 x 6 (24)	2,571	Notification required by Jul 2025
Hawthorn	Oct 2025	3 x 5 (15)	3,837	Notification required by Jul 2025
North Lakes	Oct 2025	5 x 6 (30)	3,252	First option, notification required by Oct 2024
Coburg	Nov 2025	2 x 5 (10)	2,166	New 10-year lease following completion of upgrade (Mar 2024)
Ellenbrook	Dec 2025	5 x 6 (30)	2,305	First option, notification required by Dec 2024
Townsville North	Dec 2025	5 x 6 (30)	2,076	First option, notification required by Dec 2024
Springvale	Dec 2025	5 x 6 (30)	2,486	First option, notification required by Dec 2024
Mt Gravatt	Dec 2025	3 x 5 (15)	1,495	Notification required by Sep 2025

==> picture [60 x 32] intentionally omitted <==

20 CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Core portfolio

BUNNINGS LEASE EXPIRIES (CALENDAR YEARS 2024 TO 2026) (CONTINUED)

Property	Lease expiry	Options (years)	Rent ($’000pa)	Comments
Rydalmere	Mar 2026	5 x 6 (30)	3,666	First option, notification required by Mar 2025
Belmont	Mar 2026	4 x 5 (20)	1,584	Second option, notification required by Sep 2025
Cockburn	Mar 2026	4 x 5 (20)	1,884	Second option, notification required by Sep 2025
Fairfield Waters	Mar 2026	4 x 5 (20)	1,857	Second option, notification required by Sep 2025
Pakenham	Mar 2026	4 x 5 (20)	1,637	Second option, notification required by Sep 2025
Smithfield	May 2026	4 x 5 (20)	1,750	Second option, notification required by Nov 2025
Caroline Springs	May 2026	4 x 5 (20)	2,208	Second option, notification required by Nov 2025
Sunbury	Jun 2026	5 x 6 (30)	2,167	Second option, notification required by Dec 2025
Dubbo	Aug 2026	4 x 5 (20)	1,339	New 10-year lease following completion of upgrade in early 2025
West Ipswich	Sep 2026	5 x 6 (30)	2,968	First option, notification required by Sep 2025
Manly West	Sep 2026	5 x 6 (30)	2,675	First option, notification required by Sep 2025
Harrisdale	Oct 2026	4 x 5 (20)	2,055	Second option, notification required by Apr 2026
Villawood	Nov 2026	4 x 5 (20)	2,351	Notification required by Aug 2026
Geraldton	Dec 2026	1 x 5 (5)	1,480	Notification required by Sep 2026
Mornington	Dec 2026	1 x 5 (5)	2,110	Notification required by Sep 2026
Brendale	Dec 2026	5 x 6 (30)	2,450	First option, notification required by Dec 2025
Frankston	Dec 2026	1 x 5 (5)	2,610	Notification required by Sep 2026

==> picture [60 x 32] intentionally omitted <==

21 CORE PORTFOLIO | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Portfolio growth

BUNNINGS MT GRAVATT, QLD

==> picture [60 x 32] intentionally omitted <==

22 PORTFOLIO GROWTH | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Value-adding acquisitions

WEIGHTED AVERAGE INITIAL YIELD OF 6.8 PER CENT

NOTE: THE SHADED AREA INDICATES AREA ACQUIRED IN SEPTEMBER 2023

Southport Showrooms, QLD

Broadmeadows Homemaker Centre, VIC

• September 2023 purchase for $10.0 million (excluding acquisition costs) from an unrelated third party

• Gross lettable area 2,382 square metres

• Acquisition enables restrictive easement removal to facilitate potential expansion of adjoining Trust-owned Bunnings store

• September 2023 purchase for $20.0 million (excluding acquisition costs) from an unrelated third party

• Gross lettable area 5,631 square metres

• Acquisition provides surplus land for further redevelopment (retail envelope growth and potential expansion of adjoining Trust-owned Bunnings store)

==> picture [60 x 32] intentionally omitted <==

23 PORTFOLIO GROWTH | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Extension of lease with Bunnings

SCORESBY, VIC

• New 10-year lease on completion of works with three, five-year options exercisable by Bunnings

• Annual rent to increase by CPI with market rent reviews every 10 years

• No caps/collars on CPI or market rent reviews

• No other changes to the existing lease

• BWP to complete stay-in-business capital expenditure car park works of $1.4 million

• Anticipated completion late 2024

==> picture [60 x 32] intentionally omitted <==

PORTFOLIO GROWTH | HALF-YEAR RESULTS TO 31 DECEMBER 2023

24

Bunnings Warehouse upgrades

PROGRESS

Property	Scope	Scope	Update	Update	Completion date (expected)	Completion date (expected)
	>	Upgrade cost of $14.0 million, including land acquisition of
		$1.5 million already completed (funding rate of 4.0 per cent)
	>	Total retail area increase of 2,891 square metres (29 per cent)
Lismore	>	On completion, new 10-year lease with 6 x 5-year options exercisable by Bunnings - Annual CPI reviews capped at 2.5 per cent	>	Construction progressing	>	Mid-2024
		- Market rent review every 10 years (10 per cent cap/collar
		on the market rent review)
		- No other changes to the existing lease
	>	Upgrade cost of $3.5 million (funding rate of 4.0 per cent)
	>	Total retail area increase of 918 square metres (8 per cent)
	>	On completion, new 10-year lease with 6 x 5-year options	>	Completed
Coburg		exercisable by Bunnings - Annual CPI reviews capped at 2.5 per cent	>	Awaiting practical	>	March 2024
		- Market rent review at the exercise of each option (10 per		completion
		cent cap/collar on the market rent review)
		- No other changes to the existing lease
	>	Upgrade cost of $14.0 million (funding rate of 4.0 per cent)
	>	Total retail area increase of 4,673 square metres (37 per cent)
	>	On completion, new 10-year lease with 6 x 5-year options
Dubbo		exercisable by Bunnings - Annual CPI reviews capped at 2.5 per cent	>	Construction progressing	>	Early 2025
		- Market rent review every 10 years (10 per cent cap/collar
		on the market rent review)
		- No other changes to the existing lease
PORTFOLIO	**GROWTH	HALF-YEAR RESULTS TO 31 DECEMBER 2023**

PORTFOLIO GROWTH | HALF-YEAR RESULTS TO 31 DECEMBER 2023

25

Alternative use properties

MENTONE, VIC

==> picture [60 x 32] intentionally omitted <==

26 ALTERNATIVE USE PROPERTIES | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Alternative use properties

PROGRESS

Property	Lease expiry	Comments	Comments
Port Kennedy	Expired	> >	Development approval for large format retail centre Leasing progressing
Belmont North	Expired	>	Considering redevelopment/ divestment options
		>	Development approval for large format retail centre
Hervey Bay	Expired	> >	100 per cent lease pre-commitments to national brands Builder appointed in September 2023
		>	Expected completion mid-2024
Noarlunga	Sep 2024	>	Considering redevelopment options
		>	Seeking development approval for large format retail centre
Fountain Gate	Feb 2025	>	Expecting strong interest from national brands with leasing campaign underway
		>	Expected development completion mid-2026
Northland	Aug 2025	>	Progressing redevelopment/rezoning options
Wagga Wagga	Mar 2026	>	Considering redevelopment options

==> picture [60 x 32] intentionally omitted <==

27 ALTERNATIVE USE PROPERTIES | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Portfolio renewal

WOLLONGONG, NSW

==> picture [60 x 32] intentionally omitted <==

28 PORTFOLIO RENEWAL | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Divestments

PORTFOLIO RENEWAL TO MAXIMISE VALUE AND RECYCLE CAPITAL INTO GROWTH

Wollongong, NSW

Albany, WA

• October 2023 agreement to divest to an unrelated third-party ex-Bunnings Warehouse for $40.0 million

• October 2023 agreement to divest to an unrelated third-party ex-Bunnings Warehouse for $7.0 million

• All options considered with the sale deemed to be in the best interests of unitholders

• Reflects higher and better use for high density residential redevelopment

• Demonstration of the Trust’s ability to leverage its development capability and external networks to create value by

  • All options considered with the sale deemed to be in the best interests of unitholders

  • 23 per cent premium to 30 June 2023 fair value of $5.7 million (property acquired in 1999 for $4.1 million)

  • Settlement anticipated in June 2024

• progressing the site’s future development for a higher and better use

• 82 per cent premium to 30 June 2023 fair value of $22.0 million (property acquired in 2003 for $12.0 million)

• Settlement anticipated in June 2024

==> picture [60 x 32] intentionally omitted <==

29 PORTFOLIO RENEWAL | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Capital management

BUNNINGS SCORESBY, VIC

==> picture [60 x 32] intentionally omitted <==

30 CAPITAL MANAGEMENT | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Diversified debt

SOURCE & TENOR

• Average borrowings for the period $502.4 million (up 6.1 per cent on prior corresponding period)

• 4.2 per cent weighted average cost of debt after hedging (2022: 3.3 per cent)

• Borrowing costs for the period $10.5 million (up 35.1 per cent on prior corresponding period)

• Tenor diversification through new $75.0 million institutional term loan (maturing November 2030)

• Bank facilities with CBA and WBC can be extended a further year each year, subject to agreement

• As at 31 December 2023:

• Hedging cover of 51.5 per cent

  • Weighted average rate of 1.5 per cent (excluding margins)

  • Weighted average term to maturity of 3.0 years

• Interest cover of 6.6 times (2022: 8.5 times)

• Gearing at 17.1 per cent (2022: 15.3 per cent)

> A- / Stable S&P rating and A3 Moody’s rating

As at 31 December 2023	Limit ($m)	Drawn ($m)	Expiry
Commonwealth Bank of Australia	110.0	54.9	31 July 2025
Westpac Banking Corporation	135.0	49.8	30 April 2026
Sumitomo Mitsui Banking Corporation	110.0	85.0	15 March 2027
Institutional term loan	75.0	75.0	29 November 2030
Corporate bonds – seven-year	150.0	150.0	10 April 2026
Corporate bonds – seven-year	100.0	100.0	24 March 2028
Total/weighted average	680.0	514.7	3.1 years
**CAPITAL MANAGEMENT	HALF-YEAR RESULTS TO 31 DECEMBER 2023**

31 CAPITAL MANAGEMENT | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Debt duration

DEBT MATURITY PROFILE AS AT 31 DECEMBER 2023

==> picture [619 x 398] intentionally omitted <==

----- Start of picture text -----

400
140.3
300
104.7
200
150.0
100 25.0
100.0
85.0
75.0
0
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Bonds Drawn bank facilities Undrawn bank facilities
Volume (A$M)
----- End of picture text -----

==> picture [60 x 32] intentionally omitted <==

CAPITAL MANAGEMENT | HALF-YEAR RESULTS TO 31 DECEMBER 2023

32

Outlook

BUNNINGS ROCKLEA, QLD

==> picture [60 x 32] intentionally omitted <==

OUTLOOK | HALF-YEAR RESULTS TO 31 DECEMBER 2023

33

Outlook DECEMBER 2023

Operating market & environment

• Trust remains well positioned with rental income comprising largely the Wesfarmers Group (84 per cent), other national large format retail, automotive and self-storage businesses (12 per cent) and Commonwealth and Queensland Governments (three per cent)

• Demand for Bunnings Warehouse properties is expected to remain stable in the near term given the continued strength of the Bunnings covenant

Portfolio

• Primary focus for the remainder of the financial year is on leasing vacancies in the portfolio, progressing store upgrades, extending existing leases with Bunnings through the exercise of options and progressing the proposed merger with NPR

• Trust will continue to look for opportunities to grow the portfolio that create value

Distribution & Distribution Reinvestment Plan (DRP)

Income Generation

• 24 CPI/35 fixed rent reviews in 2H FY24

• Six Bunnings MRR’s to be finalised in FY2024

• Subject to no major disruption of the Australian economy, the Trust provides 2H FY24 distribution guidance of 9.27 cents per ordinary unit (capital profits may be utilised to support the distribution)

• Given the proposed merger with NPR, the DRP has been suspended in respect of the interim distribution, with all BWP unitholders to receive their distribution in the form of a direct credit into their nominated bank in February 2024

==> picture [60 x 32] intentionally omitted <==

OUTLOOK | HALF-YEAR RESULTS TO 31 DECEMBER 2023

34

Outlook

DECEMBER 2023

Proposed Merger of BWP and NPR

• Proposed merger provides an opportunity to add nine high quality properties to BWP’s portfolio

• Leverages BWP’s capital structure to profitably grow the portfolio through assets with strong location attributes and tenant covenants, resulting in a combined portfolio of $3.5 billion

• NPR portfolio is expected to provide uplift to BWP’s sustainable earnings via addition of a secure income stream with no near-term expiries (0% of income expiring in FY24 and 3.9% in FY25) whilst increasing BWP’s WALE from 3.6 to 3.9 years

• BWP’s strong capital position will be maintained, with pro-forma gearing expected to remain at the lower end of BWP’s target range, affording continued financial flexibility

• Provides a platform for income and capital growth, consistent with BWP’s objective of providing unitholders with a secure and growing income stream and long-term capital growth

• Synergies available from the combination of two listed entities and integration of the NPR portfolio into the larger BWP portfolio, as well as the opportunity, in future, to refinance NPR debt

==> picture [60 x 32] intentionally omitted <==

OUTLOOK | HALF-YEAR RESULTS TO 31 DECEMBER 2023

35

Questions

BUNNINGS FOUNTAIN GATE, VIC

==> picture [60 x 32] intentionally omitted <==

36 QUESTIONS | HALF-YEAR RESULTS TO 31 DECEMBER 2023

Further information

Responsible entity: BWP Management Limited Tel: +61 8 9327 4356 Email: investorrelations@bwptrust.com.au

==> picture [60 x 32] intentionally omitted <==

FURTHER INFORMATION | HALF-YEAR RESULTS TO 31 DECEMBER 2023

37