The BWP Trust (ASX: BWP) share price could be on the move today after the landlord of Wesfarmers Ltd (ASX: WES) subsidiary Bunnings released a positive announcement after the market close on Wednesday.
What was announced?
The commercial real estate investment trust announced its preliminary distribution estimate for the six-month period to June 30 2019.
According to the release, in accordance with the trust's constitution, all distributable profit will be distributed to BWP Trust unitholders.
Based on current forecasts, this means an estimated ordinary distribution of 9.18 cents per unit, which includes approximately 0.08 cents of capital profits. This will be a 1.7% increase on FY 2018's final distribution of 9.03 cents per unit.
To qualify for the distribution you will need to own its units by the ex-distribution date of June 27 2019.
Special distribution.
The good news keep coming for unitholders with the trust revealing that it intends to complement its final distribution with a special distribution. This is being done following the successful divestment of four of its properties during the year.
The release reveals that BWP Trust intends to provide a special distribution of 1.56 cents per unit, which will distribute a further ~$10 million to unitholders through a release of capital profits.
The distributions will be considered at a meeting of the BWP Management board of directors scheduled for August 6 and payment of the distribution entitlements is expected to be made on August 23.
DRP suspended.
The company also advised that it has decided to suspend the Distribution Reinvestment Plan (DRP) in respect of the final distribution and special distribution.
Unitholders who have currently elected to participate in the DRP will instead receive a cash distribution paid by direct credit into their accounts.
Based on its current share price these two distributions provide unitholders with a 2.8% yield, which certainly isn't bad considering the current low interest rate environment.
