Earnings season is warming up on Wednesday with a number of results hitting the wires.
Two ASX 300 real estate shares that have released their results are named below. Here's what they have reported and how the market has responded:
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BWP Trust (ASX: BWP)
The BWP share price is up 5% to $3.46 after investors cheered on the release of the Bunnings-focused property company's half year results.
BWP reported a 22% increase in revenue to $100.6 million. Management advised that its $18.1 million increase in rental income was largely due to the acquisition of NPR in March 2024, together with annual rent increases.
Things were positive for the ASX 300 real estate share's profits. It reported a 15% lift in profit before fair value movements to $66.1 million. Whereas total profit was up 195% over the prior corresponding period to $157.1 million including $91 million of gains in fair value movements.
BWP increased its interim distribution by 2% to 9.2 cents per share.
Centuria Office REIT (ASX: COF)
The Centuria Office REIT share price is up almost 1.5% to $1.15.
This morning, the office-focused ASX 300 real estate share released its half year results and revealed funds from operations of $34.7 million. This was down 17% on the prior corresponding period.
On the bottom line, the company recorded a statutory loss of $21.2 million. This reflects a $36.2 million loss on fair value of investment properties and a $4.55 million loss on fair value of derivatives.
Nevertheless, this couldn't stop the company from achieving its distributions guidance of 5.05 cent per share.
Commenting on the half, Centuria Office REIT Fund Manager, Belinda Cheung, said:
The first half of FY25 was characterised by continuous leasing activity, which underscores Centuria's proactive management. Since 2020, the office industry has weathered numerous headwinds yet Centuria has actively addressed and mitigated significant expiries by leasing 81% of the portfolio's NLA, which speaks to the strength of the team's long term and active commitment towards leasing management.
Looking ahead, Cheung is cautiously optimistic on the company's outlook. She said:
The medium-term outlook for the domestic office market is well supported by a number of growth drivers including a reduction of future office supply, stronger occupier sentiment and ongoing population growth. However, in the near-term vacancy rates across Australian office markets remain at elevated levels, which suggest it may take some time for these tailwinds to translate into material rental growth.
