Ann: ASX Full Year Results Media Release FY July 2023, page-12

I've just watched the shareholder presentation and took the following key points out:

- The inferred asset backing is now sitting at $37.47 which is a pretty incredible discount

- The gearing is sitting at18 percent group level

- A 37 percent increase in net property trust income to 50 million

- The Sydney Industrial market currently has a 0.2 vacancy rate in large industrial property. The average rent has increased 48% on a $ per square metre rate in just 12 months.

- Accordingly the average passing rent within the industrial property portfolio is 34 percent below the market rate and 70% of the portfolio is up for rent renewals in the next 3 years

- Management also expect this to mean the current valuations will hold because any further expansion in cap rates will be covered by the significant rent increases

- The AUS building products EBIT is down 17 percent ex land sales and they are actually closing WA Austral completely as it was loss making

- In America building products EBIT was down 6 percent ex land sales

They don't seem overly positive on building products in the short term but did mention that sales are holding up better than expected in Australia for the first few months of this financial year and that they've just completed a multi year program with significant investment in the plans so there will be less cap ex for the next few years.

I find that the market (and me!) gets pretty confused with he headline profit figures for BKW because there are so many significant items etc. that it gets distorted.

Overall I would say this is a reasonably good result.

I've just bought a significant parcel on market due to the weakness.