Since the start of October, Arena REIT (ASX: ARF), Charter Hall Long WALE REIT (ASX: CLW), HomeCo Daily Needs REIT (ASX: HDN), Waypoint REIT (ASX: WPR), GPT Group Ltd (ASX: GPT), Vicinity Centres Ltd (ASX: VCX), and BWP Group Ltd (ASX: BWP) have all hit 12-month lows, with the dips concurrent with the RBA's rates decision.

Low share prices translating to good yields

Each of these real estate companies is now trading with a healthy trailing dividend yield. The question will be, can they maintain it?

Examples of some of these yields include Charter Hall at 7.94% unfranked and HomeCo at 8.03% unfranked.

Arena REIT is trading with a trailing yield of 7.76%. The company, in releasing its full-year results in August, gave guidance of 18 cents per share in distributions for the current financial year, which, at the current share price, would be a yield of 7.4%.

However, this estimate assumed the company would derive no income from the Arena properties occupied by Edge Early Learning Centres, which had entered administration.

Arena has subsequently told the ASX that all 27 of these properties are in the process of being leased to new owners; however, the deals are yet to settle.

As such, no dividend or guidance update has been made.

Interest rates a key focus

With real estate companies generally having large amounts of debt, their share prices could once again come under pressure if the RBA lifts interest rates again at its next meeting on 3 November.

ANZ Senior Economist Jasmine Zheng said this week a rate rise was "more likely than not", while Betashares Chief Economist David Bassanese was also predicting a hike.

The RBA's minutes from the meeting on October 6 indicated that further rate rises could be on the cards.

As they said:

Members discussed the challenges of judging how large the upside risks to inflation were or could become. They noted that the outlook for inflation would depend, among other things, on developments in the Middle East, the path of external demand, the extent of domestic capacity pressures and on how that influenced the pass-through of cost shocks and the evolution of inflation expectations. Members noted that it was possible these factors could continue to place upward pressure on inflation. Against that backdrop, members agreed that they would remain attentive to incoming data and the evolving assessment of the outlook and risks when making their decisions.

The post Dividend yields in focus as seven ASX real estate companies hit 12-month lows appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is rallying 0.5% after experiencing its worst one-day fall in six months yesterday.

However, the real estate sector is in the red and the worst performer of the bourse today, down 1.6%.

ASX REIT share prices are being weighed down by expectations of further interest rate rises in Australia, the US, and elsewhere.

Higher rates can affect REITs' financing, drag property values down, and make cash and fixed income investments more appealing.

Strong bond yields are also a headwind because they can raise financing costs and attract investment away from REITs.

With all that said, some brokers maintain buy recommendations on ASX REITs, while others recommend caution.

Let's investigate.

1. Arena REIT No 1 (ASX: ARF)

The Arena REIT No 1 share price is $2.02, down 0.5% today and down 43% in 2026. 

Over the past month, this REIT has fallen 10%.

Ord Minnett upgraded Arena REIT No 1 shares to a buy rating on 9 September.

The broker trimmed its 12-month price target from $2.85 to $2.75.

This implies 36% potential growth ahead.

2. Charter Hall Long WALE REIT (ASX: CLW)

The Charter Hall Long WALE REIT share price is $3.20, down 1.1% today and down 22% in 2026. 

Over the past month, this ASX REIT has declined 9%.

Morgan Stanley reiterated its hold call with a price target of $4.06 on 22 September.

This implies 27% potential upside ahead.

3. BWP Group (ASX: BWP)

The BWP Trust share price is $3.51, down 0.7% today and down 11% in 2026. 

Over the past month, this ASX REIT has dipped 5%.

UBS reaffirmed its hold rating with a 12-month price target of $3.80 on 9 September.

This implies an 8% potential upside ahead.

4. Charter Hall Retail REIT (ASX: CQR)

The Charter Hall Retail REIT share price is $3.44, down 1.3% today and down 16% in 2026. 

Over the past month, this REIT has fallen 13%.

Macquarie upgraded Charter Hall Retail REIT shares to a buy call on 30 September.

The broker has a 12-month price target of $4.18.

This implies 22% potential upside ahead.

5. Centuria Industrial REIT (ASX: CIP)

The Centuria Industrial REIT share price is $2.74, down 1.3% today and down 17% in 2026. 

Over the past month, this ASX REIT has fallen 8%.

Macquarie upgraded Centuria Industrial REIT shares to a buy rating on 30 September.

The broker's target is $3.02, implying a potential 10% upside ahead.

6. Charter Hall Social Infrastructure REIT (ASX: CQE)

Charter Hall Social Infrastructure REIT shares are $2.20, down 0.5% today and down 28% in 2026. 

Over the past month, this ASX REIT has lost 7%.

Ord Minnett reiterated its buy call on Charter Hall Social Infrastructure REIT shares on 9 September.

The broker lowered its 12-month price target slightly from $3.05 to $3.

This implies 36% potential upside ahead.

The post 6 ASX REITs just hit 52-week lows. Do any brokers say buy? appeared first on The Motley Fool Australia.

But there are plenty of other ASX shares that can provide attractive income.

These three would be on my shortlist.

APA Group (ASX: APA)

APA would be one of my first choices outside the banking sector.

The company owns and operates energy infrastructure across Australia, including gas pipelines, electricity transmission assets, and other infrastructure.

I like the type of cash flow these assets can produce.

Much of APA's revenue is supported by long-term contracts, which can give the company reasonable visibility over future earnings and distributions.

APA is also continuing to invest in new infrastructure as Australia's energy system develops. If those projects earn attractive returns, they could help the business grow while its existing assets continue generating cash.

Debt and funding costs are important risks to watch with an infrastructure company like APA. Even so, I think its essential assets and regular distributions make it a strong long-term income option.

BWP Trust (ASX: BWP)

BWP Trust gives investors a different source of income through commercial property.

The real estate investment trust (REIT) owns a portfolio of large-format retail properties, with Bunnings a major tenant.

I like that because the quality of the tenant can be just as important as the property itself.

Bunnings has a strong position in Australian home improvement, and long leases can provide BWP with relatively predictable rental income.

Over time, rent reviews and changes across the property portfolio can also help increase income.

Like most property investments, BWP can be sensitive to interest rates and changes in property valuations. I would also keep an eye on its tenant concentration.

But for an income investor, I think the combination of established properties, a strong major tenant, and regular distributions is worth considering.

Deterra Royalties Ltd (ASX: DRR)

Deterra Royalties would be my third income pick. The company earns royalties from mining operations rather than operating the mines itself.

Its most important asset is the royalty over the Mining Area C iron ore operations in Western Australia, which are operated by BHP Group Ltd (ASX: BHP).

I like that model for income because Deterra receives a share of revenue linked to production without having to fund the enormous operating and development costs that come with running a mine.

That can allow a large proportion of cash generated by the business to flow through to shareholders.

The trade-off is that Deterra's income can still move with commodity prices and production volumes, while the business has historically been heavily dependent on one major royalty asset.

Even with those risks, I think the royalty model gives income investors an interesting way to gain exposure to resources.

Foolish takeaway

I would not feel the need to rely on bank dividends alone for ASX income.

APA, BWP Trust, and Deterra Royalties generate cash in very different ways, through energy infrastructure, property rents, and mining royalties.

For me, that makes all three worth considering when looking beyond the major banks for long-term income.

The post 3 ASX income shares I'd buy outside Westpac and the major banks appeared first on The Motley Fool Australia.

What did BWP Trust report?

• Revenue rose 3.0% to $209.3 million
• Statutory net profit after tax (including fair value movements) jumped 53.8% to $408.4 million
• Funds from operations (FFO) up 4.5% to $140.9 million; FFO per security rose 2.1% to 19.29 cents
• Total FY26 distributions rose 4.1% to 19.41 cents per security
• Net tangible assets per security increased 3.3% to $4.11
• BWP's credit rating upgraded by Moody's to A3 (stable)

What else do investors need to know?

BWP Trust continued to focus on its internalised management structure in FY26, aiming to strengthen alignment between the board, management, and securityholders. The company completed several reset activities over the year, including the acquisition of NPR, resets and extensions to major leases, and a $228 million equity raising.

Portfolio activity included the divestment of non-core assets in Morley, Port Kennedy, and Chadstone, as well as ongoing developments at key sites such as Fountain Gate and Broadmeadows. BWP also acquired two fully leased large format retail centres in Queensland and Victoria, directing its strategy towards growth in this sector.

Looking ahead to the AGM on 29 October 2026, BWP is also progressing its planning for compliance with emerging sustainability and climate-related financial disclosure standards.

What's next for BWP Trust?

Management expects rental income in FY27 to primarily come from well-known tenants in the Wesfarmers Group and national large-format retail operators. Demand for Bunnings Warehouse properties is expected to be steady, underpinned by strong leasing covenants.

BWP has guided to a FY27 distribution of 20.00 cents per security, roughly 3% growth on FY26. Focus areas for the new year include repurposing former Bunnings sites, capturing positive lease reversions, and targeted asset acquisitions, all while maintaining prudent gearing levels and a payout ratio between 90% and 110% of FFO.

BWP Trust share price snapshot

The BWP share price has marginally outperformed the S&P/ASX 200 index (ASX: XJO) over the last 12 months with a modest 4.5% gain.

View Original Announcement

The post BWP Trust profit surges as distributions and portfolio quality rise in FY26 appeared first on The Motley Fool Australia.

What did BWP report?

• Estimated distribution of 9.83 cents per stapled security for the six months to 30 June 2026
• Distribution from BWP Trust up 4% year on year
• No dividend expected from BWP Property Group Ltd
• No conduit foreign income included in the distribution

What else do investors need to know?

The distribution dates include an ex-distribution date of 29 June 2026 and a record date of 30 June 2026. The distribution is expected to be confirmed on 19 August 2026, with payment to eligible holders scheduled for 27 August 2026.

The Distribution Reinvestment Plan (DRP) will apply for this round. Unitholders in Australia and New Zealand can participate, with new stapled securities issued at the volume weighted average price over 10 consecutive trading days in July 2026. No discount will be applied on reinvested securities.

What's next for BWP?

Investors can expect confirmation of the final distribution in August 2026, following the BWP Board's review. The continued operation of the DRP provides investors with the option to reinvest their distributions without a discount, supporting long-term investment growth.

BWP Trust will also keep unitholders informed via its website and registry for further DRP participation details and updates on distribution timing.

BWP share price snapshot

Over the past 12 months, BWP shares have risen 8%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.

View Original Announcement

The post BWP Trust announces June 2026 distribution grows 4% appeared first on The Motley Fool Australia.

I think the best income shares are backed by assets, tenants, cash flows, or services that can keep supporting distributions through different market conditions.

For investors looking for income with staying power, these are two ASX dividend shares I would consider buying.

Charter Hall Long WALE REIT (ASX: CLW)

Charter Hall Long WALE REIT is one income share I would look at.

The trust owns a diversified portfolio of property assets leased to corporate and government tenants. Its focus is on long leases, which can provide investors with a clearer view of future rental income.

That is the attraction. Income investors are often looking for reliability, and long leases can help provide it. They do not remove all risk, but they can make the cash flow profile easier to understand.

I also like that the trust gives exposure to real assets. Property can be affected by interest rates, debt costs, valuations, and tenant demand. But well-leased assets can still play a useful role in an income portfolio.

The key for investors is to watch gearing, lease expiries, asset values, and distribution coverage. Property trusts can look attractive when yields are high, but balance sheet strength is still important.

For me, Charter Hall Long WALE REIT is appealing because it offers income backed by leases rather than pure economic optimism. And based on consensus estimates, it currently trades with a forward 7% dividend yield.

BWP Trust (ASX: BWP)

BWP Trust is another ASX income share I would consider.

The property group owns a portfolio of large-format retail sites, with a strong connection to Bunnings-leased properties. That gives it exposure to a tenant and retail category with a long history of relevance in Australia.

The model is simple, which I think is part of the appeal with this one.

BWP owns properties, collects rent, manages its portfolio, and pays distributions to investors. It is not trying to be a fast-moving growth stock. It is more about property income, asset quality, and long-term lease relationships.

Large-format retail sites can be valuable because they are not always easy to replace. Location, access, parking, and building suitability are important.

Interest rates and property valuations can affect the share price, and retail property still needs to be assessed carefully. But I think BWP's tenant profile and tangible asset backing make it a useful income candidate.

Another positive is that BWP trades with a forward dividend yield of 5% based on consensus estimates.

Foolish Takeaway

Income investing can feel more comfortable when the cash flow has structure behind it.

That is what I like about these two ASX income shares. Their appeal is not just the headline yield, but the property assets, tenant relationships, and lease profiles supporting those payments.

Both still carry risks, especially around interest rates, debt, tenant demand, and property valuations. But for investors trying to build income that can last, I think these are the kinds of businesses worth considering.

The post 2 ASX dividend shares I'd buy for income with staying power appeared first on The Motley Fool Australia.

I would be asking whether the business sells something people keep using, owns assets that are hard to replace, or serves customers that need its products in good times and bad.

With that in mind, these are five ASX passive income stocks I would consider buying.

Telstra Group Ltd (ASX: TLS)

Telecom giant Telstra is one of the first names I would look at for passive income.

The company's biggest strength is its role in everyday life. Mobile connectivity is now essential for households, businesses, payments, entertainment, travel, security, and work.

That gives Telstra a level of repeat demand that many businesses would love.

I also like its leadership position in mobile. Network quality still counts, and Telstra has the scale to keep investing in coverage, capacity, and technology upgrades.

For income investors, the attraction is the mix of defensive earnings, a strong brand, and a dividend profile that has become easier to understand in recent years.

APA Group (ASX: APA)

APA is another passive income stock I would be happy to own.

The business owns energy infrastructure that helps keep Australia running. Its pipelines, processing assets, storage assets, power generation, batteries, and transmission infrastructure all play a role in energy supply.

That infrastructure base is the appeal. These are long-lived assets, and they are difficult to replicate quickly. Australia's energy system is also becoming more demanding as the country tries to balance reliability, affordability, and lower emissions.

Debt and interest rates need watching, as with any infrastructure-style business. But for long-term income, I think APA has useful qualities.

Amcor plc (ASX: AMC)

Amcor gives investors a different type of income exposure.

The company supplies packaging and dispensing solutions across food, beverages, healthcare, beauty, wellness, and other consumer categories.

That may sound simple, but packaging is part of a huge number of everyday products. Food needs protection. Medicines need safe packaging. Consumer brands need containers, cartons, closures, and flexible packaging that work properly and meet changing sustainability expectations.

Amcor's global footprint gives it spread across customers, countries, and end markets. It still faces risks from input costs, currencies, debt, and customer demand, but I like the repeat-use nature of what it provides.

Transurban Group (ASX: TCL)

Transurban is one of the more interesting infrastructure-style income shares on the ASX.

Its toll roads are woven into major cities, particularly in Australia and North America. These assets are valuable because they sit on transport corridors that are hard to duplicate.

Traffic volumes can shift with the economy, work patterns, fuel prices, and population growth. But over long periods, well-located urban roads can remain important pieces of infrastructure.

The business is capital intensive, so debt always deserves attention. Still, I think Transurban has several income-friendly traits: scale, scarcity, regular usage, and exposure to growing cities.

BWP Group (ASX: BWP)

BWP Group is a property name I would include.

It owns a portfolio of large-format retail properties, with a strong connection to Bunnings-leased assets. That gives it exposure to a tenant and category with a long record of relevance to Australian consumers.

Hardware, renovation, trade, gardening, and home improvement spending can move with the cycle, but well-located large-format sites remain valuable.

For passive income investors, I think the attraction is the simplicity of the model. BWP owns physical properties, collects rent, and distributes income to investors.

Foolish takeaway

Passive income investing works best when the dividend has something solid behind it.

That is what I like about this group. These companies touch communications, energy, packaging, transport, and property, giving investors exposure to different parts of the economy that people and businesses continue to use.

They are not risk-free, and issues such as debt, regulation, inflation, and interest rates always need watching. But if I were building an ASX portfolio for passive income, I would want businesses with staying power rather than just big yields.

These five stocks fit that brief for me.

The post Here are my 5 best ASX passive income stocks appeared first on The Motley Fool Australia.

With interest rates rising, investors can now earn a respectable return from cash without taking on share market risk. For income investors with a low risk tolerance, I think term deposits can make a lot of sense.

But they are not the only option.

For investors who can handle some risk, ASX income stocks may offer something more powerful: attractive dividends plus the potential for capital growth.

That is important when inflation is high. A term deposit may help preserve purchasing power, but it is unlikely to grow wealth meaningfully after inflation and tax. Quality dividend shares can offer income today and the chance of a higher portfolio value over time.

Three ASX income stocks I would consider are named in this article.

Telstra Group Ltd (ASX: TLS)

Telstra is one of the first ASX income stocks I would look at.

The telecommunications giant provides mobile, broadband, and network services that remain essential for households and businesses.

I like this defensive quality. Even when consumers are under pressure, most people will not cancel their mobile phone or internet connection. That gives Telstra a more resilient earnings base than many cyclical businesses.

The other attraction is its dividend profile.

Telstra has been working through a long period of simplification and network investment, and I think the business now looks better placed to deliver steady income growth for shareholders.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT is another income option I like.

This property group owns convenience-based assets such as neighbourhood retail, large format retail, and health and services properties.

That mix is attractive to me because many of its tenants are linked to everyday needs rather than luxury spending.

The portfolio includes exposure to supermarkets, pharmacies, healthcare services, pet supplies, and other essential or regular-use categories. This can support rental income even when household budgets are stretched.

There are risks. REITs can be sensitive to interest rates, debt costs, and property valuations. But if rates eventually stabilise and demand for convenience-based retail property remains solid, I think the income and capital growth potential could be strong.

BWP Group (ASX: BWP)

BWP Group is another ASX income stock that could appeal to investors looking beyond term deposits.

It owns a portfolio of large-format retail properties, with a strong connection to Bunnings Warehouse sites.

That gives it exposure to a tenant base and property type that has historically been attractive for income investors.

I like the simplicity of the model. BWP owns properties and collects rent from tenants, with the aim of turning that rental income into distributions for investors.

The link to large-format retail can also provide some inflation protection if leases include rental increases over time.

BWP is also not risk-free. Property values can move, interest rates can affect sentiment, and tenant concentration needs to be considered. But for income investors willing to take on some market risk, I think it remains a quality ASX property income option.

Foolish takeaway

Term deposits are a good choice for investors who want certainty and have little tolerance for share market volatility.

But for those who can accept some ups and downs, ASX income stocks may offer a stronger long-term outcome.

Telstra, HomeCo Daily Needs REIT, and BWP Group all provide income potential from different parts of the market. They also offer something term deposits cannot: the chance for capital growth over time.

The post Why these ASX income stocks could be better than term deposits appeared first on The Motley Fool Australia.

This sees shares in the S&P/ASX 200 Index (ASX: XJO) real estate investment trust (REIT) – whose major tenants include Bunnings – up 3.9% over the past 12 months.

That's roughly in line with the 4.4% one-year gains posted by the ASX 200.

Though we shouldn't forget the 19.1 cents a share in unfranked dividends BWP paid to eligible stockholders over this period.

The ASX 200 REIT currently trades on a 5.1% unfranked trailing dividend yield.

And looking ahead, Sanlam Private Wealth's Remo Greco believes BWP shares represent an appealing investment in today's uncertain times (courtesy of The Bull).

Should you buy BWP shares today?

"BWP is a real estate investment trust," Greco said. "It's the biggest owner of Bunnings Warehouse sites in Australia, with a portfolio of 66 stores."

As for the first reason you might want to buy BWP shares, Greco said:

The group's income profile is characterised by high occupancy, long lease terms and strong tenant quality. Long-dated leases provide income visibility and steady rental growth.

Then there's the passive income on offer.

"BWP presents as a defensive property investment entering a more proactive phase and recently trading on an annual yield of almost 5%," Greco noted.

And summing up the third reason he has a buy recommendation on the ASX 200 stock, Greco concluded, "BWP appeals to investors in uncertain times as it offers low tenant risk and reliable cash flow."

What's the latest from the ASX 200 REIT?

Last Thursday, 7 May, BWP announced it had successfully raised $122 million via an Institutional Entitlement Offer, issuing new BWP shares for $3.77 each.

Wesfarmers Ltd (ASX: WES) reportedly took up its full $53 million entitlement.

The fully underwritten offer forms part of the company's total $228 million capital raising goal.

BWP's retail entitlement offer aims to raise another $106 million. That opened for eligible retail investors on 12 May and is scheduled to close on 22 May.

As for the company's recent financial results, for the six months to 31 December (H1 FY 2026) the ASX 200 REIT reported revenue of $103.6 million, up 3.0% year-on-year.

And on the bottom line, BWP's statutory profit after fair value adjustments and tax was up 41.2% from H1 FY 2025 to $221.8 million.

This saw management boost the interim dividend by 4.3% to 9.6 cents a share.

BWP expects to make full year FY 2026 dividend payments of 19.41 cents a share, up 4.1% from the passive income it paid out in FY 2025.

The post 3 compelling reasons to buy BWP shares today appeared first on The Motley Fool Australia.

Here's what Sanlam Private Wealth has named as buys on Monday:

BWP Trust (ASX: BWP)

This Bunnings-focused property company could be an ASX dividend share to buy according to Sanlam Private Wealth.

It likes the company due to its defensive qualities and reliable cash flows. It explains:

BWP is a real estate investment trust. It's the biggest owner of Bunnings Warehouse sites in Australia, with a portfolio of 66 stores. The group's income profile is characterised by high occupancy, long lease terms and strong tenant quality. Long-dated leases provide income visibility and steady rental growth. BWP presents as a defensive property investment entering a more proactive phase and recently trading on an annual yield of almost 5 per cent. BWP appeals to investors in uncertain times as it offers low tenant risk and reliable cash flow.

Consensus estimates are for dividends per share of 19.4 cents in FY 2026 and then 19.8 cents in FY 2027. Based on its current share price of $3.84, this would mean dividend yields of 5% and 5.15%, respectively.

IVE Group Ltd (ASX: IGL)

Another ASX dividend share that Sanlam Private Wealth is tipping as a buy this week is diversified marketing company IVE Group.

It highlights its generous dividend yield and share buy-back as reasons to be positive on the stock. It said:

IVE is a diversified marketing company. The company has generated growth via an acquisition strategy. Management has largely integrated these businesses smoothly, delivering synergies and cost reductions. Management execution is an under-rated strength. The company has initiated a share buy-back and the stock was recently trading on a fully franked dividend yield of almost 7 per cent, enhancing its income appeal. The stock is trading at a discount, in our view.

IVE isn't widely covered in the broker community, so there is no consensus estimate for dividends.

However, over at Bell Potter, its analysts are expecting the company to pay fully franked dividends of 18 cents per share in FY 2026 and then 20 cents per share in FY 2027. Based on its current share price of $2.63, this would mean dividend yields of 6.8% and 7.6%, respectively.

Bell Potter has a buy rating and $3.25 price target on its shares.

The post Expert names 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

The BWP share price is down 1.52% to $3.88 at the time of writing.

That means the stock has given back some ground after its trading halt, although it remains up around 7% over the past month.

BWP is best known as a major landlord to Bunnings. It owns and manages a portfolio of retail warehouse properties across Australia.

The latest update follows Wednesday's announcement that BWP was raising about $228 million through a fully underwritten entitlement offer.

Here's what investors are looking at today.

Institutional offer completed

BWP said it has successfully completed the institutional component of its fully underwritten 1-for-12 accelerated non-renounceable pro rata entitlement offer.

The offer was priced at $3.77 per new security.

That was below the last traded price of $3.94 before BWP entered its trading halt on Wednesday.

According to the release, the institutional offer received strong support from eligible institutional securityholders, with a take-up rate of about 98%.

BWP said the institutional component raised gross proceeds of around $122 million, which included Wesfarmers Ltd (ASX: WES) taking up its full entitlement of about $53 million.

Wesfarmers remains BWP's largest securityholder, holding a 23.4% stake.

BWP also said the shortfall attracted demand from both existing and new institutional investors.

Around 32 million new securities will be issued under the institutional offer at the $3.77 issue price.

Retail offer comes next

While the institutional component has been completed, the raising is not finished yet.

BWP said the retail entitlement offer is expected to raise about $106 million.

Eligible retail securityholders will be able to apply for 1 new security for every 12 existing BWP securities held at the record date.

The retail offer will be priced at the same $3.77 per new security as the institutional offer.

The retail offer is expected to open on Tuesday, 12 May, and close on Friday, 22 May.

New securities issued under the institutional component are expected to begin trading on Monday, 18 May.

Foolish takeaway

The institutional result looks good, and it gives BWP a strong start to the raising.

But investors now have the $3.77 offer price sitting in front of them.

This can make it harder for the share price to push much higher in the short-term, even with the stock still trading slightly above that level.

I'd be more inclined to watch what BWP does with the money from here.

The project pipeline gives BWP room to grow, but investors will want to see that reflected in valuations, rental income, or earnings.

The post Why BWP shares are back in the red today appeared first on The Motley Fool Australia.

What did BWP Group report?

• Raised approximately $122 million via the Institutional Entitlement Offer at $3.77 per new security
• Offer was fully underwritten, part of a total $228 million capital raising
• Wesfarmers took up its full $53 million entitlement
• Approximately 32 million new securities to be issued
• New securities will rank equally with existing BWP securities

What else do investors need to know?

BWP Group completed the institutional component of its 1 for 12 pro rata entitlement offer, showing continued support from large shareholders. Any shortfall was quickly picked up by other existing and new institutional investors.

Trading in BWP securities resumed today. The new securities issued are set to begin trading on 18 May 2026, offering increased liquidity and access for investors.

The retail entitlement offer, which aims to raise an additional $106 million, opens for eligible retail investors on 12 May 2026, closing on 22 May 2026.

What's next for BWP Group?

Attention now turns to the retail entitlement offer, giving eligible investors a chance to participate on the same terms as institutional investors. The proceeds from the capital raising are expected to support BWP Group's ongoing investment strategy and strengthen its balance sheet.

Management will be sharing more details in the upcoming retail offer booklet and is providing a dedicated support line for shareholder queries.

BWP Group share price snapshot

Over the past 12 months, BWP Group shares have risen 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

View Original Announcement

The post BWP Group announces successful entitlement offer appeared first on The Motley Fool Australia.

The BWP share price is frozen at $3.94, where it last traded before the halt. That leaves the stock up about 8% over the past month, after a stronger run into May.

BWP is best known as a major landlord to Bunnings. It owns and manages a portfolio of large-format retail properties across Australia.

The trading halt follows a capital raising announcement released before market open.

Here's what investors are looking at today.

BWP launches $228 million cap raising

BWP has announced a fully underwritten accelerated non-renounceable pro rata entitlement offer to raise about $228 million.

Eligible securityholders can subscribe for 1 new security for every 12 existing BWP securities. The offer price has been set at $3.77 per new security, which is below the last closing price of $3.94 on 5 May.

BWP said the offer price represents a 4.3% discount to that closing price. It also represents a 4% discount to the theoretical ex-rights price of $3.93.

The group said around 60 million new securities will be issued under the offer.

The retail component is due to open later this month.

BWP expects normal trading to resume on Thursday, 7 May, after the institutional offer results are announced.

Why the group is raising money

BWP said the proceeds will support future capital deployment across its portfolio, including a pipeline of about $163 million in committed capital projects.

These include repurposing developments, asset expansions, and upgrades across older properties.

Assuming the committed capital spend goes ahead, BWP expects pro forma gearing to sit at 20.3%. That would be at the low end of its 20% to 30% target range.

Wesfarmers Ltd (ASX: WES), BWP's largest securityholder, has also committed to take up its full entitlement. Wesfarmers holds a 23.4% stake and is expected to contribute about $53 million in total.

Distribution guidance held steady

BWP also reaffirmed its FY26 distribution guidance of 19.41 cents per security.

New securities issued under the offer will rank equally with existing securities. They will also be entitled to the second-half FY26 distribution, which is expected to be 9.83 cents per security.

That should help ease some concern around dilution from the cap raising. Still, investors will want to see how the market prices the stock once trading resumes tomorrow.

Keep in mind, a discounted raising can still put pressure on a share price, even if the money is being directed towards growth projects.

The post Why this Bunnings landlord is frozen on the ASX today appeared first on The Motley Fool Australia.

What did BWP Group report?

• Fully underwritten 1-for-12 pro rata entitlement offer to raise around $228 million at $3.77 per new security
• Committed pipeline of $163 million in developments, asset expansions and upgrades
• Cumulative capital deployment of over $700 million in the past two years, including large acquisitions and internalisation of management
• FY26 distribution guidance reaffirmed at 19.41 cents per security
• Wesfarmers, the largest shareholder, committed to take up its full entitlement (~$53 million)

What else do investors need to know?

BWP's entitlement offer is designed to maintain balance sheet strength and support a $163 million pipeline focused on large format retail projects. Four significant projects representing $78 million of capital expenditure are underway, with additional opportunities expected soon.

The offer price of $3.77 per new security comes at a slight discount to recent trading prices, aiming to encourage maximum participation by eligible securityholders in Australia and New Zealand. New securities will qualify for the second-half FY26 distribution.

BWP's property portfolio sits at $1.2 billion as at 31 December 2025, driven by acquisitions, repurposing, and expansion within the large format retail sector.

What did BWP Group management say?

Managing Director Mark Scatena said:

BWP has been listed for 28 years and has a demonstrated track record of strong capital stewardship. It has been 13 years since BWP last undertook an equity raising and, importantly, over its listed life BWP has delivered approximately 12 per cent annualised returns to securityholders with $1.00 invested at listing in September 1998 worth $22.95 today, assuming reinvestment of distributions.

What's next for BWP Group?

Looking ahead, BWP plans to actively deploy capital from the entitlement offer to develop and upgrade properties, as well as pursue further portfolio growth opportunities. Management's focus remains on portfolio optimisation, profitable growth, and renewal, targeting long-term income and capital gains.

The company's active participation in the large format retail sector, underpinned by robust tenant demand, sets up BWP for ongoing rental income and valuation growth. Distribution guidance assumes no major economic shocks or market changes.

BWP Group share price snapshot

Over the past 12 months, BWP Group shares have risen 8%, slightly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post BWP Group launches $228 million entitlement offer appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 3.5% to $9.32. This has been driven by a combination of broad market weakness and the infant formula company's shares going ex-dividend today. Last month, A2 Milk released its half-year results and declared a fully franked 8.3 cents per share interim dividend. Eligible shareholders can look forward to receiving this payout in a couple of weeks on 2 April.

BWP Trust (ASX: BWP)

The BWP Trust share price is down 4% to $3.64. The catalyst for this appears to have been a broker note out of UBS this morning. According to the note, the broker has downgraded the Bunning Warehouse-focused property company's shares to a neutral rating (from buy) with a reduced price target of $3.89. UBS highlights that the last time there was an energy crisis (the start of the Russia-Ukraine conflict), Australian REITs sank deep into the red as interest rates rose.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 6% to 20.7 cents. Investors have been selling the lithium miner's shares following broad weakness in the mining sector and the completion of its $120 million institutional placement. Those funds were raised at a 4.5% discount of 21 cents per new share and will be used to restart the Finniss Lithium Project this year. Core Lithium's managing director, Paul Brown, said: "The strong support we have received through this equity raising is a clear endorsement of Core's restart strategy and the long-term value of the Finniss Operation. Combined with the strategic funding from Glencore, InfraVia and Nebari, this places Core in a fully funded position to execute the restart in line with the FID."

Newmont Corporation (ASX: NEM)

The Newmont share price is down 5.5% to $146.51. This follows a sizeable pullback in the gold price overnight after the US Federal Reserve kept rates on hold. It appears that traders were hoping for a rate cut, which would be supportive of the safe haven asset, but rising oil prices have seemingly ruled that out. It isn't just Newmont that is falling today. The gold industry is a sea of red, with the S&P/ASX All Ordinaries Gold index down 8% at the time of writing.

The post Why A2 Milk, BWP, Core Lithium, and Newmont shares are sinking today appeared first on The Motley Fool Australia.

What did BWP Group report?

• Revenue rose 3.0% to $103.6 million (HY24: $100.6 million)
• Statutory profit after fair value adjustments and tax surged 41.2% to $221.8 million (HY24: $157.1 million)
• Interim distribution per security lifted 4.1% to 9.58 cents
• Net tangible assets per security climbed 2.0% to $4.00
• Weighted average capitalisation rate of 5.27% across the property portfolio
• Portfolio value increased by $195.9 million to $3.9 billion, including significant unrealised gains

What else do investors need to know?

BWP completed its management internalisation in August 2025, focusing on strengthening systems and employment arrangements as it transitions to an internal model. The company advanced key leasing milestones, amending 62 Bunnings leases and making progress on development approvals for property expansions in Western Australia and New South Wales.

The Group's occupancy rate remained solid at 96.7%, with a long weighted average lease expiry of 7.5 years. Divestments included several properties sold at strong premiums, while new debt facilities have improved funding flexibility and reduced risk.

What did BWP Group management say?

Managing Director Mark Scatena said:

The half saw a continued focus on asset repurposing, occupancy improvement and asset recycling whilst transitioning to an internalised management structure, with funding diversified and the balance sheet expanded to support the lower cost of capital post internalisation.

What's next for BWP Group?

BWP expects to maintain its strategic direction, balancing portfolio optimisation, growth and renewal through the remainder of FY26. Priorities include embedding the internal management model, deploying capital efficiently for site repurposing and tenant-led expansions, and capitalising on further leasing opportunities.

The company guides to a full-year distribution per security of 19.41 cents, about 4.1% higher than FY25. Ongoing rent reviews, site developments, and tenant mix enhancements should underpin future growth, supported by a low supply pipeline in the large format retail sector.

BWP Group share price snapshot

Over the past 12 months, BWP Group shares have risen 8%, slightly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post BWP Group posts strong half-year profit and higher distributions appeared first on The Motley Fool Australia.

What did BWP Trust report?

• Unconditional sale contract for Chadstone Homeplus Homemaker Centre at $86.025 million
• Sale price is 1.1% above 31 December 2025 fair value of $85.1 million
• Settlement expected June 2026
• Sale realises an internal rate of return of 15.2% since acquisition in 2024
• FY2026 distribution guidance maintained

What else do investors need to know?

The sale follows a Bunnings lease extension to 31 July 2030, which helped boost the property's value ahead of marketing. Management conducted a public sales campaign attracting strong national interest, underscoring ongoing demand for quality large-format retail assets.

Proceeds from the divestment will initially be used to pay down debt, supporting BWP Trust's balance sheet flexibility. The asset was acquired in 2024 as part of a nine-asset portfolio for $72.5 million, highlighting the total value created in a short timeframe.

What did BWP Trust management say?

Managing Director Mark Scatena commented:

The transaction demonstrates BWP's ability to leverage its asset management capability by extending the property's weighted average lease expiry to maximise asset value.

What's next for BWP Trust?

BWP Trust remains focused on portfolio renewal, looking to recycle capital into new opportunities or pay down debt while maintaining distributions. Management will continue assessing asset performance and seek further value-adding activities.

The settlement in June 2026 is expected to give BWP ongoing flexibility as it pursues its strategic objectives and responds to changing market conditions.

BWP Trust share price snapshot

Over the past 12 months, BWP Trust shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post BWP Trust to divest Chadstone Homeplus, maintains FY2026 guidance appeared first on The Motley Fool Australia.

What did BWP Group report?

• Interim distribution: 9.58 cents per stapled security, unfranked
• Ex-dividend date: 30 December 2025
• Record date: 31 December 2025
• Payment date: 27 February 2026
• Dividend reinvestment plan (DRP) available, with election date closing 2 January 2026

What else do investors need to know?

This interim distribution is unfranked, with 100% paid as unfranked income. BWP's DRP allows eligible investors to reinvest their distribution into additional units, with the price set by the average security price between 6 and 19 January 2026. Investors should note tax component details will be confirmed in a separate ASX release on 13 February 2026.

According to BWP Group, information and DRP rules are available via their investor centre or through the share registry at Computershare.

What's next for BWP Group?

Looking ahead, BWP Group investors can expect further details on the distribution's tax components before the payment is made in February. The trust continues to offer its DRP without discount for eligible securityholders, supporting reinvestment opportunities.

BWP Group remains focused on delivering steady distributions to its unitholders and providing regular updates as further financial results are released.

BWP Group share price snapshot

Over the past 12 months, BWP Group shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen around 2% over the same period.

View Original Announcement

The post BWP Group announces December 2025 half-year dividend: distribution details and DRP appeared first on The Motley Fool Australia.

Falling interest rates worldwide are a tailwind for ASX real estate investment trusts (REITs), although the economic outlook is uncertain.

On The Bull this week, two analysts reveal a REIT to buy and one to sell.

Here's why.

ASX REITs: Buy one, sell the other

BWP Trust (ASX: BWP)

Buy this ASX REIT for 'dependable income', says expert

Jed Richards of Shaw and Partners has a buy rating on BWP Trust shares.

BWP stands for Bunnings Warehouse Properties.

The ASX REIT manages a portfolio of commercial properties, including 66 Bunnings Warehouses.

BWP Trust reported a 47.4% year-over-year increase in net profit to $265.6 million for FY25.

That includes $135.9 million in net unrealised capital gains in the fair value of its investment properties and derivatives.

Revenue rose 16.5% to $203.3 million.

In FY25, BWP Trust paid an annual dividend of 18.65 cents per share.

This gives the ASX REIT a trailing dividend yield of 5%.

Richard likes BWP Trust for its "dependable income and asset quality".

He comments:  

The trust owns prime land with low cost buildings, resulting in minimal depreciation and strong capital preservation.

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.

The BWP Trust share price closed at $3.73 on Tuesday, flat.

The REIT is up 12.7% in the year to date.

DigiCo Infrastructure REIT Stapled Securities (ASX: DGT)

Sell this REIT and reduce your risk, says analyst

James Nicolaou from PAC Partners has a sell rating on this ASX REIT.

DigiCo REIT owns, operates, and develops data centres, which are crucial for enabling artificial intelligence (AI) systems.

The REIT made its market debut in December and had an initial public offering (IPO) price of $5.

The stock has fallen 39% since listing to close at $2.70 on Tuesday.

Nicolaou noted DigiCo's recent news that its Sydney-based data centre (SYD1) development had been awarded certified strategic status.

That's the highest level available under the Australian Government hosting certification framework.

The ASX REIT reported annualised underlying EBITDA of $99 million, ahead of prospectus guidance, for FY25.

Nicolaou said DigiCo management stopped short of offering firm FY26 earnings guidance.

Looking ahead, Nicolaou reckons it may be time for investors to cut their losses.

The broker explains his sell rating:

Growth depends on successfully executing its strategy.

Shares in DGT were priced at $5 in the initial public offering prior to listing on the ASX on December 13, 2024.

The shares were trading at $2.895 on September 18.

Investors may want to consider reducing their holdings and risk prior to further news developments.

The post Buy one, sell the other: Brokers rate 2 ASX REITS appeared first on The Motley Fool Australia.

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).

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.

The post 3 reasons to buy this high-yielding ASX 200 industrials stock today appeared first on The Motley Fool Australia.