• Internalisation of BWP management functions
• Resetting and extending Bunnings leases within BWP portfolio
• Commitments for store expansions and network upgrades

BWP Management Limited ('BWPM'), the responsible entity for the BWP Trust (ASX:BWP), and Wesfarmers Limited ('Wesfarmers') have signed an Implementation Deed to enable a proposal to be put to BWP Unitholders. The proposal comprises three components: 1) the internalisation of the management functions of BWP, 2) resetting the terms of Bunnings Group Limited ('Bunnings') Leases within the BWP property portfolio, and 3) store expansion expenditure commitments and network upgrade expenditure commitments at certain Bunnings sites within the BWP property portfolio. The key benefits of the proposed transaction include tenant retention, income certainty, longer weighted average lease expiries, expected valuation uplift, lowering operating costs, distribution accretion, and potential for diversified and incremental income streams. The internalisation will be funded through a $100 million cash payment from BWP's existing debt facilities and the issue of $42.6 million in BWP scrip to Wesfarmers. Wesfarmers will continue to be BWP's largest securityholder with a 23.5% holding and will be entitled to appoint a director to the BWP board. The proposed transaction is subject to BWP unitholder approval at an Extraordinary General Meeting to be held on 28 July 2025.

Following implementation of the proposed transaction, BWP's distribution forecast for FY2026 is 19.41 cents per BWP Stapled Security, representing a 4.1% increase on the FY2025 distribution of 18.65 cents per BWP Trust Unit.

The proposed transaction is expected to provide a platform for potential future growth, with new acquisitions not requiring a material increase in internal management costs, and the opportunity to diversify income streams through third party asset and fund management mandates.