S&P/ASX 200 Index (ASX: XJO) industrials stock BWP Trust (ASX: BWP) is slipping today.
Shares in the real estate investment trust (REIT) – whose tenants include Bunnings – closed yesterday trading for $3.73. In afternoon trade on Tuesday, shares are changing hands for $3.725 apiece, down 0.1%.
Taking a step back, shares in the ASX 200 industrial stock are up 13.3% so far in 2025, outpacing the 8.6% gains posted by the benchmark index.
And according to Shaw and Partners' Jed Richards, BWP continues to offer good value for shareholders with a long-term investment horizon (courtesy of The Bull).
Image source: Getty Images
Should you buy BWP shares today?
"This real estate investment trust invests in and manages commercial properties across Australia," said Richards, who has a buy recommendation on the ASX 200 industrials stock.
"BWP is the biggest owner of Bunnings hardware sites in Australia with 66 stores," he said.
Richards noted, "BWP offers dependable income and asset quality. The trust owns prime land with low cost buildings, resulting in minimal depreciation and strong capital preservation."
Summing up the three reasons that make BWP a stock to buy today, Richards said, "High occupancy, stable cash flow and an attractive dividend yield make BWP a prudent choice for income focused investors seeking low volatility and long term value."
As for that passive income, over the past full year, BWP has paid out 18.7 cents per share in unfranked dividends. At the current share price, that sees the ASX 200 industrials stock trading at an unfranked trailing dividend yield of 5.0%.
What's the latest from the ASX 200 industrials stock?
BWP reported its full-year FY 2025 results on 6 August.
The share price closed modestly higher on the day after the company reported revenue of $203.3 million for the 12 months to 30 June, up 16.5% from FY 2024.
And on the bottom line, BWP achieved a 47.4% year-on-year increase in net profit to $265.6 million. (This includes $135.9 million in net unrealised gains in the fair value of BWP's investment properties and derivatives.)
The company noted:
The operating environment for the 2025 financial year was shaped by moderating inflation, stabilising interest rates, and resilient demand for large format retail property. Retail real estate remained attractive, supported by strong supply-demand fundamentals and population growth.
Looking ahead, the ASX 200 industrial stock said it expects to pay 19.41 cents per share in unfranked dividends in FY 2026, which would mark a 4.1% increase from the dividends paid out in FY 2025.
