ASX 200 rises, BWP Trust falls, Genworth soars

The ASX 200 went up again. BWP Trust reported its FY21 result.

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The S&P/ASX 200 Index (ASX: XJO) rose today by 0.4% to 7,503 points.

Here are some of the highlights from the ASX:

BWP Trust (ASX: BWP)

The BWP share price fell around 2% today after releasing its FY21 result.

BWP revealed that net profit before revaluation gains for the year was $114 million, down 3% from FY20. The property business explained this reflected the one-off impact of deposit payments forfeited by prospective purchasers of BWP-owned properties that resulted in a higher net profit for FY20.

The real estate investment trust (REIT) explained that despite COVID-19 impacts and restrictions, Bunnings was able to operate on an unrestricted basis from the properties leased from BWP for the majority of the year. The trust received 99.6% of rent due for the year.

Net revaluation gains on the property investment portfolio amounted to $149.2 million for the year. The net tangible assets (NTA) per unit increased by 7.5% over the year to $3.29. It achieved like for like rental growth of 1.6% for the 12 months to 30 June 2021.

BWP reported a full year ordinary distribution of 18.29 cents per unit, the same as FY20. Capital profits were used to offset the lower net profit to maintain the same distribution.

The ASX 200 business is expecting to pay a similar distribution in FY22.

Genworth Mortgage Insurance Australia Ltd (ASX: GMA)

The Genworth share price increased by around 7.5% today. It reported its half-year result for the first six months of FY21.

Australia’s largest lenders mortgage insurance (LMI) business reported a statutory net profit of $59.4 million, a turnaround from a loss of $90 million in the first half of FY20.

The insurance profit generated in the first six months of the year was $71.5 million, an improvement from the loss of $128.1 million in the prior corresponding period. This was helped by a 21.1% increase of gross written premium to $289.7 million.

The CEO and managing director of Genworth, Ms Pauline Blight-Johnston, said:

The result reflects the improved economy, housing market appreciation and low interest rates experienced during the half. Performance was also supported by operational initiatives implemented last year in response to the new operating environment created by COVID-19.

The stronger economy over the first half has provided good momentum for the company, however, the recent COVID-19 restrictions in some states will affect the ongoing economic recovery and have created renewed uncertainty. The latest round of borrower support programmes will extend the duration of the subdued delinquency behaviour we have been experiencing, pushing out the timeframe over which we will obtain increased clarity regarding ultimate claims outcomes.

Ingenia Communities Group (ASX: INA)

The Ingenia share price rose around 1% after announcing an acquisition.

It said that it’s buying Kings Point Retreat, an award-winning lifestyle and holiday community on the NSW South Coast.

The acquisition includes 147 income-producing sites, including 53 permanent homes. Around 20% of revenue is derived from these permanent residents.

It’s located in the popular tourist destination of Ulladulla, within the group’s established South Coast cluster.

The $15.8 million acquisition is expected to settle in August 2021 and is set to deliver a ‘stabilised’ yield of over 7.7%.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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