BWP Trust (ASX: BWP) shares closed on Wednesday trading for $3.77 apiece.
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.
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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