The BWP Trust (ASX: BWP) share price was out of form on Monday and started the week in the red.
At one stage on Monday the shares of the landlord of the Wesfarmers Ltd (ASX: WES) owned Bunnings business dropped 8.5% to a multi-year low of $2.59.
By the end of the day they had recovered most of this decline, closing the day 3.5% lower at $2.73.
Will things be better on Tuesday?
All eyes will be on the BWP share price this morning following the release of an update after the market close on Monday.
According to the release, the property company has followed the lead of peers such as Cedar Woods Properties Limited (ASX: CWP) and GPT Group (ASX: GPT) by withdrawing its guidance for FY 2020.
The BWP board advised that due to the uncertainty of the duration and impact of the COVID-19 pandemic, it has been deemed appropriate to withdraw its distribution guidance for the financial year ending June 30.
When the company released its half year results last month, it advised that shareholders "could expect the distribution for the year ending 30 June 2020 to be one per cent higher than the ordinary distribution paid for the year ended 30 June 2019."
This would imply a full year distribution of 19.8 cents per share, which equated to a 7.2% yield based on its last close price.
BWP's Managing Director, Michael Wedgwood, explained "As the impacts of the COVID-19 pandemic continue to escalate across our community and economy, we are acting swiftly, to not only protect our employees and stakeholders, but to ensure our business is financially robust, for what could be a sustained period of disruption."
Balance sheet strength.
Management notes that BWP's balance sheet and debt position continues to remain robust.
The trust is well-positioned with $129 million of cash and committed undrawn bank facilities available and gearing levels of 18% as at December 31.
Another positive is that BWP has no debt maturing in the next 12 months, with the next facility maturing on April 30 2022.
