BWP Trust Declares 9.2c Per Unit Dividend Payable February 26

BWP Trust Updates Distribution for H2 2024

BWP Trust (ASX: BWP) has released an update to its previously announced distribution estimate, confirming an ordinary dividend of 9.2 cents per fully paid ordinary unit for the six months ended December 31, 2024. This dividend is scheduled for payment on February 26, 2025, with the record date set at December 31, 2024.

The announcement clarifies that the distribution is fully unfranked, reflecting the trust's typical tax treatment. Importantly, no external approvals such as security holder or regulatory consents were required to finalise this dividend payment, underscoring a smooth process in the trust's capital management.

Dividend Reinvestment Plan Details

BWP Trust’s Dividend Reinvestment Plan (DRP) remains fully operational for this distribution, offering investors the option to reinvest their dividends into additional units rather than receiving cash. The DRP price has been set at AUD 3.3336 per unit, calculated as the average daily volume weighted average price over a 20 trading day period from January 6 to February 3, 2025. Notably, there is no discount applied to the DRP price, which may influence investor participation decisions.

Units allocated under the DRP will be sourced on-market through a broker, rather than newly issued, which helps mitigate dilution for existing unitholders. The trust has also confirmed there are no minimum or maximum participation limits or other conditions attached to the DRP, making it accessible to all eligible investors.

Context and Market Implications

This update follows BWP Trust’s prior announcement in December 2024 and provides clarity on the actual distribution amount, which aligns with market expectations. The steady dividend reflects the trust’s ongoing focus on delivering reliable income streams from its real estate portfolio, a key attraction for income-focused investors in the REIT sector.

While the announcement does not elaborate on the reasons behind the update to the distribution estimate, the confirmation of the dividend and DRP terms will likely reassure investors about the trust’s financial stability and distribution policy. The absence of a DRP discount might temper reinvestment uptake but also signals confidence in the unit price.

Investors and analysts will be watching closely how the market responds to this update, particularly in terms of unit price movements and DRP participation rates, which can provide insight into investor sentiment and the trust’s capital management strategy going forward.