BWP GROUP — Interim / Quarterly Report 2026

Feb 12, 2026

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2026 Half-year results

2026 Half-year results
		2025	2024	Variance %
HALF-YEAR ENDED 31 DECEMBER
Revenue	$000	103,563	100,574	3.0
Profit after fair value movements and income tax	$000	221,792	157,110	41.2
Interim distribution per security	cents	9.58	9.20	4.1
Net tangible assets per security	$	4.00	3.92	2.0

BWP Group (‘BWP’) has reported statutory profit after fair value movements and income tax of $221.8 million for the half- year ended 31 December 2025, an increase of 41.2 per cent on the previous corresponding period. An interim distribution of 9.58 cents per security will be paid to securityholders, reflecting an increase of 4.1 per cent. BWP affirms total distribution per security guidance for FY26 of 19.41 cents (approximately 4.1 per cent growth on FY25).

BWP Managing Director Mark Scatena noted that the result reflects the continued advancement of activities aligned to the Group’s strategic pillars of portfolio optimisation, profitable growth, and portfolio renewal. “The half saw a continued focus on asset repurposing, occupancy improvement and asset recycling whilst transitioning to an internalised management structure, with funding diversified and the balance sheet expanded to support the lower cost of capital post internalisation,” Mr Scatena said.

Portfolio Optimisation

Implementation of the management internalisation was achieved on 1 August 2025. Post-internalisation activity supporting the transition to an internalised model saw BWP focus on systems enablement and employment arrangements for team members. Progress was made on the lease reset with 62 Bunnings leases amended and development applications advanced for expansions at Balcatta (WA) and Maitland (NSW).

Like-for-like rental income growth for the half-year ended 31 December 2025 was 2.6 per cent, highlighting the benefits of the Group’s balanced lease structure and improved leasing spreads from an expanding large format retail (‘LFR’) portfolio. The Group maintained a strong tenant mix, with 97.6 per cent of income secured by the Wesfarmers Group and other national retailers. The weighted average lease expiry increased to 7.5 years, while portfolio occupancy remained robust at 96.7 per cent, after reflecting the impact of ongoing asset repurposing initiatives.

BWP progressed the repurposing of stores vacated by Bunnings including commencing construction works at Fountain Gate (VIC) and Noarlunga (SA), as well as appointing a builder for the Broadmeadows Homemaker Centre (VIC) development on surplus land.

During the half, the Group’s property portfolio was revalued, leading to a weighted average capitalisation rate of 5.27 per cent. The value of the Group’s portfolio increased by $195.9 million to $3.9 billion, driven largely by unrealised gains of $155.9 million, acquisitions, and effective asset management.

Profitable Growth

With an LFR portfolio of some $1.2 billion in value at 31 December 2025, BWP remains well placed to benefit from favourable market conditions in the sector. Growth in BWP’s LFR portfolio (representing 30.9 per cent of the portfolio’s valuation at the end of the half) continued to be driven by rental uplift, acquisitions and asset repurposing. “LFR tenant strength together with low rates of new supply, drove strong rental outcomes in the half and continue to afford BWP the opportunity to grow the portfolio and leverage the post-internalisation reduction in the cost of capital,” Mr Scatena said.

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2 | 2026 BWP Group Half-year Results

On 24 November 2025, BWP acquired the fully leased HomeCentre Morayfield (QLD) for $48.0 million (plus costs) at a market capitalisation rate of 5.75 per cent. The large format retail centre offers 12,086 square metres of lettable space with tenants including Amart Furniture, Nick Scali, Super Cheap Auto and Sydney Tools, and a weighted average lease expiry of 4.0 years. The off-market acquisition, funded from existing debt facilities, was accretive to earnings post settlement.

“The material size of the LFR market, together with ongoing transaction activity, support BWP’s opportunity to grow the portfolio and to leverage post-internalisation reductions in the cost of capital, as demonstrated with the acquisition of HomeCentre Morayfield (QLD),” Mr Scatena said.

Portfolio Renewal

BWP progressed the divestment of three properties including the ex-Bunnings Morley site (WA) sold for $19.5 million (a 56.0 per cent premium to its 30 June 2025 valuation), the ex-Bunnings Port Kennedy (WA) sold for $14.3 million (a 43.0 per cent premium to its June 2025 valuation), and the execution of an unconditional contract to sell Chadstone Homeplus Homemaker Centre (VIC) for $86.0 million (a 9.6 per cent premium to its June 2025 valuation).

The Group successfully raised new debt, improving funding flexibility and reducing risk. In October 2025, a new $300 million five-year bond was completed, providing enhanced capacity to support the financing of asset repurposing, tenant-led expansion, portfolio growth, and the repayment of maturing debt.

Outlook

For the balance of the 2026 financial year BWP will continue to deliver on its strategic agenda of portfolio optimisation, profitable growth and portfolio renewal. Key priorities for the half will include progressing the internalisation transition, further optimising the cost of capital, efficiently deploying material capital commitments and actioning growth opportunities.

BWP will continue to focus on transitioning to an internalised model, including systems enablement, remuneration model alignment with securityholder interests, and additional resourcing, notably in areas supporting growth, investor relations and sustainability.

The second half will see the progression of material capital expenditure commitments reflecting significant site repurposing activities and tenant-led expansion projects, with capital expenditure of $60 million to $70 million expected for the 2026 financial year, dependent upon construction and project status.

BWP will continue to pursue growth opportunities, leveraging the post-internalisation cost of capital reduction, and recent balance sheet funding diversification. LFR market factors including low rates of new supply and robust tenant performance are expected to support portfolio optimisation activity within BWP’s LFR portfolio through tenant mix curation and leasing spread opportunities, with active assessment of profitable opportunities in LFR remaining a focus area.

BWP’s largest tenant, Bunnings, remains well positioned, supported by its external environment with Bunnings continuing to pursue opportunities to expand its addressable market.

‑ Finally, rent reviews are expected to contribute incrementally to property income for the half year to 30 June 2026, with 93 leases to be reviewed to CPI or by a fixed percentage increase during the second half (73 completed in the first half). In addition, three market rent reviews of Bunnings Warehouses are in the process of being finalised and are expected to be completed during the second half.

For further information

More detailed information regarding BWP’s 2026 Half-year results can be found in the BWP Group 2026 Half-year Report, incorporating Appendix 4D, for the Half-year ended 31 December 2025.

Mark Scatena David Hawkins Managing Director Chief Financial Officer +61 8 9327 4356 +61 8 9327 4248 This announcement was authorised to be given to the ASX by the Board.