Bunnings Warehouse Property Trust (BWP) posted a full year net profit of just $692,000, down from more than $200 million last year due to unrealised losses over lower asset valuations. The company announced a distributable profit for the year ended 30 June 2008 of $40 million, up from $39.1 million last year.
Looking ahead, the group said volatility relating to interest rates and increased bank fees and margins may affect earnings going forward.
However, Bunnings said the generally uncertain outlook might provide the trust with some growth opportunities.
"At this point we expect that volatile economic and market conditions during 2008/09," the group said.
Bunnings posted a $692,000 net profit for the year, down 99% on the previous quarter.
The group attributed the massive fall in profit to unrealised losses in fair value of investment properties.
The group said the value of its portfolio increased by $12.1 million to $962.3 million, following a net revaluation loss of $39.3 million and capital expenditure of $51.4 million during the year.
Total income was $65.9 million, up by 10.3% from last year due to additional income received from new properties, property upgrades and annual rent reviews.
The group also reported $18 million of financing costs over the period.
The trust said it had a total of $380 million debt facilities with four major Australian banks.
"The gearing ratio at 30 June 2008 was 31.5%, within the trust's preferred range of 20% to 40%," BWP said in a statement.
A final distribution of 6.72c per unit has been declared.
This brings the total distribution for the 2007/08 year to 13.27c per unit, a 2.2% increase on last year's distribution of 12.98c per unit.
At Thursday's close, Bunnings Warehouse Property Trust closed 3c higher at $1.925.