Morning everybody, and Welcome to BWP's 2026 annual general meeting. My name's Fiona Harris, and I'm the Chair of BWP. On behalf of the board, I acknowledge the traditional owners of country throughout Australia and their continuing connections to lands and waterways on which we depend, and pay my respects to elders past and present. Today comprises the combined annual general meetings of the shareholders of BWP Property Group Limited and the unitholders of BWP Trust. It's our first AGM since the internalisation of BWP's management and the establishment of the Stapled Group. This is an important milestone in the evolution of BWP. The internalisation has more directly aligned BWP's management and governance arrangements with security holders, and established an independent operating platform to support BWP's future growth. Before I open the formal meeting, I would like to attend to some housekeeping matters.
Firstly, when registering for this meeting, you would've been provided with your admission card. If you do not have this, please raise your hand and one of the Computershare representatives will assist you. Everybody good? Secondly, please ensure your mobile phone is turned to silent. As it's just after 10:00 A.M. in Perth and we have a quorum, I will declare the meeting open. I'm joined today by my fellow non-executive Directors, who I will ask to stand as I introduce them, so you can put a face to the name. We have Tim Bult, Danielle Carter, Alison Quinn, and Mike Steur. I'm also joined on stage by Managing Director Mark Scatena. Also with us in the audience are members of the senior management team. Chief Financial Officer David Hawkins. David going to wave, or where is he? Up the back. Chief Property Officer Anthony Crossland, up the back.
Head of Transactions Andrew Ross, also up the back. They're all up the back. General Counsel and Company Secretary Warren Baillie, who's up the front, and as well as Jane Bailey, representing our external auditor KPMG. I welcome all security holders and guests attending today, as well as those watching the meeting via the webcast. Our Managing Director Mark Scatena will speak following my remarks and provide a more detailed review of BWP's financial and operating performance during the 2026 financial year, our portfolio activities, and the outlook for the group. The business of today's meeting. The notice of meeting dated the 17th of September 2026 has been made available to security holders and will be taken as read. The notice of meeting sets out the matters to be considered by security holders today.
In addition to considering the annual report, security holders will be asked to vote on eight resolutions. These relate to the remuneration report, the election or re-election of five Directors, the proposed grant of performance rights to the Managing Director, and the appointment of KPMG as auditor of BWP Property Group Limited. Voting on those resolutions will take place later in today's meeting by way of a poll, and there will also be an opportunity for security holders to ask questions. Financial year 2026. FY 2026 was a year of progress and delivery for BWP. Over the past three years, we've repositioned the portfolio, strengthened income and covenant security, internalised management, and reset the capital structure. Together, these steps give BWP a stronger, more flexible platform for its next phase of growth.
Despite elevated funding costs, evolving tenant needs, and strong competition for quality assets, BWP delivered sound results in FY 2026. Funds from operations rose 4.5%, and distributions rose 4.1%. The portfolio remained 98.4% occupied, and the Bunnings lease reset lifted our weighted average lease expiry from 4.5 - 7.3 years. The AUD 228 million entitlement offer in May 2026 strengthened the balance sheet, reduced gearing to 18.5%, and gives BWP the capacity to fund developments and pursue growth opportunities. These outcomes reflect disciplined execution through a period of significant change, and Mark will cover the results in more detail shortly. In terms of strategy and governance, our objective is unchanged: a secure and growing income stream and long-term capital growth for security holders. We pursue this by securing and growing income through active portfolio management and disciplined capital allocation.
The board's role is to ensure that growth stays disciplined, risks are well managed, and capital is allocated to opportunities that secure long-term value. Good governance remains central. In FY 2026, the board oversaw the transition to internalized management, the completion of the entitlement offer, the advancement of the development pipeline, and investment in systems, people, and processes needed to run BWP independently. We are also preparing for BWP's first mandatory climate-related report, which will be released for the year ending 30 June 2027. In terms of board renewal, financial year 2026 was also an important period of board renewal. Tony Howarth AO retired as Chair in February 2026 after a long and distinguished tenure on the board. Tony led BWP through an important period, including the move to internal management, and I thank him again for his significant contribution.
We also welcome Tim Bult to the board as the nominee of Wesfarmers, BWP's largest security holder. Tim brings extensive strategic, commercial, and executive experience gained over more than 25 years with Wesfarmers. Today is also the first time the directors seek election under the Stapled Group structure. I am standing for re-election together with Danielle Carter, Alison Quinn, and Mike Steur. Tim Bult joined the board in December 2025 and is standing for election. Mike Steur has advised the board that if re-elected today, he intends to retire during calendar 2027, and his early notice supports an orderly board succession process. The board believes it has an appropriate mix of skills, experience, and perspectives for BWP's next phase as an internally managed group. Our people. Internalization demanded a great deal from our people, while the day-to-day work of managing the portfolio and serving our tenants carried on.
On behalf of the board, I thank Mark and the entire BWP team for their contribution during the year, and I also thank you, our security holders, for your continued confidence in BWP. I now invite Mark to take you through BWP's performance, portfolio, and outlook in more detail. Thank you.
Thank you very much, Fiona, and a very good morning to everyone. Thank you for joining us. I'd like to start by talking about our year at a glance. FY 2026 was a year of reset and delivery. We secured our income, renewed the portfolio, reset the balance sheet, and became an internally managed group.
Today, I will cover three things: our results, our portfolio, and our priorities for FY 2027. Now to financial performance. In short, earnings increased, distributions grew, and the balance sheet strengthened. Total income increased by 3% to AUD 209.3 million. Funds from operations, or FFO, increased 4.5% to AUD 140.9 million, while FFO per security increased by 2.1% to 19.29 cents. Higher rental income and a lower operating cost base following internalization more than offset higher finance costs. The internalization of management progressed to plan, with the management expense ratio almost halved at year-end from 0.66% - 0.34%.
Statutory net profit after tax, including fair value movements, was AUD 408.4 million, up AUD 142.8 million or 53.8%. Excluding revaluation movements and one-off transaction costs, net profit after tax increased by 5.4% to AUD 140.2 million. Distributions were 19.41 cents per security, up 4.1%. These results reflect a quality portfolio, embedded rental growth, strong tenant covenants, and a leaner cost base post-internalization. Now turning to portfolio performance.
At 30 June 2026, BWP owned 80 investment properties across Australia, with a total value of approximately AUD 4.0 billion. The portfolio was 98.4% occupied, with vacancies principally relating to the properties being repositioned at Fountain Gate and Noarlunga. As part of the management internalization and lease reset and lease extension transaction, we reset and extended 62 Bunnings leases, lifting our weighted average lease expiry from 4.5 years to 7.3 years. That means more secure and more visible income for many years to come.
Like-for-like rental growth was 3.0% for the year. We completed 163 rent reviews during the year, including 18 market rent reviews. Those market reviews delivered a weighted average increase of 6.7% over passing rents, with particularly strong outcomes in the large format retail portfolio. In large format retail, new leases and renewals across 14 tenancies delivered leasing spreads of 23.6%. Bunnings and the broader Wesfarmers group remain central to BWP's portfolio.
Approximately 80% of our rental income comes from the Wesfarmers group, with a further 16% derived from other national large format retail, automotive, and self-storage businesses. This exposure to tenants with strong operating businesses and national networks supports the resilience of BWP's rental income. Turning to active asset management. Our development pipeline demonstrates the value available within BWP's existing portfolio. During the year, BWP incurred capital expenditure of AUD 49.4 million, primarily reflecting the advancement of repurposing and development activities.
Our Fountain Gate and Noarlunga assets involve the conversion of former Bunnings warehouses into multi-tenanted large format retail centers. Fountain Gate, which opened for tenant trading last weekend, is fully pre-leased, while Noarlunga was 78% pre-leased at year-end. Both projects are expected to generate attractive returns on development expenditure. We are also activating surplus land at Broadmeadows, expanding the Carco showroom at Midland under a new 15-year lease, and progressing a Bunnings expansion at Pakenham. Together, these projects diversify income, improve the use of existing sites, and create additional value from assets already within the portfolio. Now to acquisitions and capital recycling. During the year, BWP acquired Home Centre Morayfield in Queensland for AUD 48.0 million at a market capitalization rate of 5.75%. Following the end of the 2026 financial year, we acquired Sunbury Lifestyle Centre in Victoria for AUD 25.2 million at a market capitalization rate of 6.0%.
Both centers are fully leased and increase BWP's exposure to the large format retail market. During the year, we also sold Chadstone for AUD 86.0 million, Morley for AUD 19.5 million, and Port Kennedy for AUD 14.3 million. Together, these sales achieved gross proceeds 18.6% above their pre-divestment valuations, reflecting our disciplined approach to capital recycling, that being to sell well and reinvest in assets that grow income and deliver capital growth over time.
To our capital position, in FY2026, our portfolio value rose by AUD 257.0 million, or 6.9%. This growth in portfolio value reflected rental growth, longer leases, asset development contributions, and a 15-basis point firming in the capitalization rate to 5.25%. Net tangible assets increased by 3.3% to AUD 4.11 per security. We also reset the balance sheet, issuing a AUD 300 million five-year bond in October 2025 and raising AUD 228 million through a fully underwritten entitlement offer in May 2026.
We thank our security holders, including Wesfarmers Limited, for their support of that entitlement offer. Importantly, Moody's upgraded our debt ratings outlook to A3 stable, and S&P affirmed our A- stable rating. At 30 June 2026, gearing was 18.5%, down from 21.6% at 30 June 2025, and BWP had AUD 447 million of unused available debt facilities. We therefore have the capacity to complete our developments and pursue growth concurrently while keeping a conservative balance sheet. Our people, the internalization of management was implemented on the 1st of August 2025, following security holder approval. Since then, we've focused on the capabilities, systems, and processes to run BWP independently while continuing to manage the portfolio, tenant relationships, developments, and financing activities. That was a substantial undertaking, and I thank every team member of our team for their absolute professionalism and significant contribution through that transition. Now to outlook.
Our priorities in the 2027 financial year are clear: complete our four repurposing projects, deliver or advance Bunnings expansions at Pakenham and Maitland, capture positive leasing spreads, retain a focus on optimizing our cost of capital, and pursue acquisitions that complement and are accretive to the portfolio over time. Our rental growth is largely committed. In FY 2027, 96% of base rent is subject to CPI-linked or fixed annual increases, with only 4% subject to market review. Capital expenditure is expected to be between AUD 55 million and AUD 65 million, excluding divestment proceeds. Whilst interest rates and consumer spending remain uncertain, BWP's core strengths are unchanged.
A tenant mix leveraged to national retailers and the Wesfarmers group, notably Bunnings, a portfolio of locations with strong underlying land value and opportunities to capture higher and best uses over the long term, and a conservative balance sheet, giving us capacity to grow the portfolio as opportunities arise. For FY 2027, we expect distributions of AUD 0.20 per security, growth of around 3%. This represents a payout ratio of around 104% of FFO, supported by capital profits from recent property sales whilst we repurpose projects and they come online. This guidance is subject to there being no major disruption to the Australian economy or material change in market conditions. BWP moves into the balance of the 2027 financial year with secure rental income, a strong balance sheet, and a near-term pipeline of development opportunities to complete.
We remain focused on disciplined execution and sustainable long-term returns for security holders. On behalf of the BWP team, I thank our tenants, business partners, security holders, debt capital providers, and the BWP board for their continued support. Thank you, and I will now hand back to Fiona.
Thank you, Mark.
Okay. Thanks very much, Mark, and I will now turn to the formal business of the meeting. We are going to be considering the resolutions that are set out in the notice of meeting, and I will introduce each resolution, and each resolution will be displayed on the screen. I will also allow time for questions from security holders that are holding green or yellow admission cards, and if you have a question at that time, I ask that you raise your hand and our microphone attendant will bring a microphone to you. I ask that you then state your name and ask your question. Voting on all resolutions is now open and will remain open until I declare the poll closed. I will advise you before voting closes. Item one is the annual financial statements and reports.
The first item of business is to receive and consider BWP's financial report, Directors' report, and Auditors' report for 2026. These reports are contained in BWP's 2026 annual report, which has been made available to security holders and is available on BWP's website. The reports contain detailed information on BWP's financial performance, portfolio activity, governance, and remuneration outcomes for the year.
As outlined in the notice of meeting, there is no resolution for security holders to vote on in relation to these reports. This item provides security holders with an opportunity to comment on and ask questions about the reports, the management of BWP, and the conduct of the audit. We will now take questions relating to the annual report. If anyone wishes to ask a question of KPMG regarding the conduct of the audit, the Auditors' report, accounting policies adopted by BWP, or auditor independence, please also do so now.
We did not receive any written questions for the auditor before the statutory deadline. Are there any questions, Geoff?
Thank you. Thank you very much, Fiona. My name is Geoff Read. I am here as a Proxy Holder for the Australian Shareholders' Association, and 51 of our members have given me their proxies covering 2.2 million shares today. Congratulations on a good year's result. Excellent first year of operations, and we look forward to many more, so thank you to you, the board, the team, the entire company. Fiona, I have one question for you today, and that is that given that we do not send checks, we send distributions electronically direct to bank accounts, and we do not send postage statements, we send emails, would it be possible to move to quarterly distributions?
Do you
I can
Thank you, Geoff.
Yes.
Well, I can probably make some initial comments at least. Geoff, that is true that a large number of people have moved to electronic communications, but we do have a fairly large proportion of our security holder base that has not yet provided us with that information. If we were to receive it, that would potentially make things a lot easier and save money, obviously. As we know these days, relying on something to be posted out to you, goodness knows when that might actually occur. But in relation to the frequency of the distributions, I guess one thing we would have to weigh up in considering that is that we would be drawing down debt to do that, and that interest costs, being what they are and heading in the direction that they are going, could potentially be higher than they would otherwise be.
It is certainly something that we can have a look at, and we will do so over the course of the next year. But if people could provide us their electronic communication details, that would certainly make it easier.
Thank you.
Did you want to add anything, Mark?
No, Geoff, I think just to put some quantification maybe around Fiona's comments. Yes, there are about 36% of our security holders, which is a relatively significant number, that still receive communications essentially via post. We would, like Fiona said, we would be delighted if that number reduced, and that most certainly would make a more frequent distribution far more economic. I think there is probably just an agenda there to make sure we have more electronic communication penetration, and we will continue to have a look at the distribution frequency.
Thanks a lot.
Thank you. Are there any other questions? There being no further questions.
There's this.
Oh, I'm sorry.
Quick question.
Yes. Sorry. Is that on? No, I don't think it's on. Yeah.
Just a very general question. Obviously, we do not see the rate environment being very conducive because after yesterday's inflation numbers, nobody is actually betting on peaking of interest rates inside, at least for the near term. But elevated interest rate environment is already causing, I think, a fair bit of hardship on the broad economy. At the moment, we know this company is well-capitalized, low gearing. I have been speaking to Ross. Ross is saying that, "Oh, we have been positioning for opportunities." Obviously, after the internalisation, we have seen a different approach, meaning that even Bunnings is also trying to maybe enhance the current assets in terms of the warehouses.
I think it is possibly because of the high cost of greenfield developments as opposed to enhancing the current assets and extending their useful life. That is probably one, and that is how we actually got a few of the current lease extension that we said. That is one approach. The Trust itself has also gone out and acquired some assets. But my question now is, with elevated interest rates environment, obviously, I think corporates are going a little harder. Are there more opportunities that is actually emerging because of elevated interest rates environment? Because people are still looking for investment opportunities, the defensive ones. But are we seeing that emerging, or are the competition for these defensive assets like large format or even Bunnings Warehouse still as competitive?
Thank you. Some excellent points raised there, and great to see you. I think you are right that the environment is becoming more difficult. My initial observation on that would be that there would be likely to be opportunities emerge, but it might take some time. I will hand to Mark to answer that in more detail because I know we have been looking at that very closely.
CK, thank you for the question, and a lot of the deliberations we have at a board level. In fact, only yesterday we spoke about the environment. Yes, if I take interest rates and perhaps our approach and some expectations. Yes, interest rates most certainly are more elevated than what they were 12 months ago. As I said, our focus on the cost of capital is incredibly important. Some of that is most certainly in our control, and the entitlement offer and the bond raising of October last year were two elements where we think we have and the internalisation, lowering that management expense ratio. We now have a better cost of capital than we had prior to the internalisation and those refinancing activities. We have a cost of capital that can be used.
I think that's probably what Andrew Ross was talking to about the ambition to use that cost of capital when we can. I think you made a comment post-internalization is almost a different approach. It's not a different approach at all. In fact, we used the balance sheet to acquire and some scrip to acquire NPR back in 2004. We are always scanning for opportunities where there might be a value opportunity for our security holders. That was one example. The portfolio we have, CK, I think we've had this discussion a couple of times. 20% of that at the moment is large format retail. It's something we've been in for more than a decade. We understand those customers incredibly well and those lease structures. It's a very large addressable market that churns much more frequently than the Bunnings Warehouse market.
We think there are opportunities for good players, people that understand those lease structures and those tenants, and people that can extract value out of the leases after they've been purchased. We think we're one of those participants. We have some ambition to grow in that market, and there are some very strong, I think you're talking about interest rates, but if you think about population demand,
the under spacing, so the under build-out development cost you raised are a driver of that. But we think there are some very strong macro themes that support large format retail over the long term, notwithstanding some near-term trading pressures for some of those tenants. We take a long-term view, obviously, when we make investments. In terms of churn, we did some analysis. We took the board through that. Perhaps not as much churn as there had been, CK, and maybe buyers and vendors will take some time to recalibrate on pricing expectations. We probably see that happening over the next six months or so. But we have a very active pipeline. We're looking at lots of assets.
There are still high net worth individuals out there that are buying large assets, putting their private balance sheets that actually don't watch the Reserve Bank cash rate necessarily or the 10-year bond yield. They have some historic wealth that they're putting to work in a defensible covenant like the covenants we trade with. So, there may be a softening, but it's a big market. It's churning, and we think we're positioned with the right balance sheet to act if those opportunities are in the interest of security holders.
Thanks, Mark. Are there any other questions? There being no further questions, that concludes consideration of the annual report. I'll now move on to the resolutions set out in the notice of meeting, and the first of those is the adoption of the remuneration report. Before moving to resolution one, I note that as Chair of the meeting, I intend to vote all valid undirected proxies in favor of each resolution as described in the notice of meeting. Resolution one concerns the adoption of BWP's remuneration report for the financial year ended 30 June 2026. This is BWP's first remuneration report as a Stapled Group. The report describes BWP's remuneration framework, the relationship between remuneration and performance, and the remuneration arrangements applying to directors and key management personnel. The vote on this resolution is advisory and does not bind BWP or the directors.
However, the board will take the voting outcome into account when considering BWP's future remuneration arrangements. The resolution is displayed on the screen. The valid proxies received in relation to this resolution are also displayed on the screen. Are there any questions or comments on resolution one? If not, we will move on to resolutions two to six, which concern director elections. Resolutions two to six concern the election and re-election of directors. The board, with the assistance of the Remuneration and Nomination Committee, has considered the qualifications, experience, and contribution of each candidate. The board considers that, collectively, the directors provide an appropriate mix of skills, experience, and perspectives for BWP's next phase as an internally managed group. Each resolution will be considered separately. As resolution concerns my own re-election, I'll ask Mark Scatena to chair this part of the meeting.
Before I hand over to Mark, I'd like to say a few words in relation to my own re-election. I grew up in the Wheatbelt of Western Australia as the eldest child of a farming family. Both parents had left school at 14, which was reasonably common at the time, and therefore, I was the first in my family to go to university. Growing up in this environment meant that there were fewer activities available to us, and that meant that we developed self-reliance and resilience. The small but close-knit community also fostered an egalitarian approach and an attitude of helping out when needed. I started my career with chartered accountants Peat Marwick Mitchell & Co. some 45 years ago.
I was fortunate enough to work with that firm, and its successors, in Perth, San Francisco, and Sydney, then finally becoming a partner in the New South Wales practice of KPMG in 1993. At the end of 1994, I left the firm and moved with my husband back to Perth, and for the past 32 years, I've been a professional non-executive director. I joined the Australian Institute of Company Directors back in about 1993 because firstly, I wanted to learn about the craft of directorship, then later because I wanted to help improve it. I've taken an active interest in improving governance across Australia since then. I believe I've lived by my principles all through my career, and those are fairness, integrity, excellence, and teamwork. Having gained some experience on boards, I was asked to join others where there were known challenges.
I didn't shy away from these, but I always sought the best outcome for the interests of shareholders. In the time I've been on the BWP board, I believe I've approached things with an attitude of continuous improvement. I've never sat back and accepted the status quo. I believe I've been able to add significant value through my extensive and diverse board experience. So I seek your endorsement for re-election today, which will allow us to continue on the strategic path that we've set and to continue to be trusted stewards of your valuable capital. Thank you.
Thank you, Fiona. The resolution is displayed on the screen. The valid proxies received in relation to this resolution are also displayed on the screen. Are there any questions or comments on resolution two? Okay, I'll now invite Fiona to resume the chair.
Thank you. Thanks very much, Mark. Resolution three concerns the re-election of Danielle Carter as a director. The resolution is displayed on the screen. The valid proxies received in relation to this resolution are also displayed on the screen. I'd like to invite Danielle to address the meeting in relation to her re-election. Thank you, Danielle.
Good morning, everyone. Serving as a BWP non-executive director for nearly five years has been a privilege, and today I'm seeking re-election so that I may continue to contribute to BWP's objective of providing security holders with a secure and growing income and capital growth over the long term. I bring to the board non-executive experience in the property and funds management sectors. I currently serve as a non-executive director of Dexus Asset Management, the responsible entity of the Dexus Industria REIT and the Dexus Convenience Retail REIT. I previously served as a non-executive director of APN Property Group. My non-executive experience is grounded in a 25-year executive career, predominantly in real estate funds management, investing on behalf of institutional, wholesale, and retail investors. I'm passionate about real estate and the important role that it plays in your investment portfolios.
I have deep expertise across all aspects of direct and listed funds management and strategic portfolio construction, including the acquisition, financing, development, asset management, and disposal of real estate assets. As a chartered accountant, I understand the importance of accurate reporting and robust risk management frameworks, especially in a changing business landscape. I will continue to bring rigor to my role as the Chair of the Audit and Risk Committee. If reelected, I give you my commitment that I will represent the best interest of all security holders. I will continue to bring integrity, insight, and diligence to the board, and together with my board colleagues, endeavor to deliver enhanced, sustainable outcomes. Thank you.
Thank you, Danielle. Are there any questions or comments on Resolution three? If not, we will move on to Resolution four, which concerns the reelection of Alison Quinn as a director. The resolution is displayed on the screen. The valid proxies received in relation to this resolution are also displayed on the screen. I'd like to invite Alison to address the meeting in relation to her reelection.
Thank you, Chair, and good morning security holders. Excuse me. I'm pleased to offer myself for reelection to the board of BWP. I've served as an independent non-executive director since December of 2019 and have valued the opportunity to contribute to BWP's development, particularly through its recent structural and operational changes. My professional background spans more than 30 years across property, infrastructure, and related sectors, including senior executive leadership and chief executive roles. Much of my career has involved businesses where disciplined capital investment, operational performance, and long-term asset value were fundamental to success. I believe this experience brings a practical commercial perspective to the board, together with an understanding of the importance of balancing opportunity with risk. Having served through BWP's transition to internal management, I'm particularly conscious of the importance of maintaining independent oversight, clear management accountability, and disciplined capital allocation.
As a fellow security holder, I recognize the importance of protecting and growing long-term value, and I welcome the opportunity to continue contributing my experience and judgment to BWP's future success. Thank you for your consideration.
Thank you, Alison. Are there any questions or comments on Resolution four? If not, I'll move to Resolution five, which concerns the reelection of Mike Steur as a Director. The resolution is displayed on the screen. The valid proxies received in relation to this resolution are also displayed on the screen. Mike has informed the Board that if reelected, he intends to retire from the Board during calendar year 2027. The Board considers that this early notice supports an orderly succession process. I would like to invite Mike to address the meeting in relation to his reelection.
Thanks, Fiona, and good morning, ladies and gentlemen, and in particular, the security holders that are present both online and here today in the room. I am today seeking support for reelection as an independent Non-Executive Director of BWP Management. Since my tenure on the Board commenced in 2015, I've drawn on my background in property and governance to help guide decisions with steady judgment, always keeping long-term value in focus. This background is complementary to the other Board members, thus providing the necessary diversity. My focus has been on keeping governance sound, supporting strategic and sustainable performance, and asking the right questions so management can deliver. I don't take your trust lightly. As advised, I am retiring in 2027, and it's been an absolute privilege to have contributed to BWP's performance over my tenure. Thank you.
Thank you, Mike. Are there any questions or comments on Resolution five? If there are none, I'll turn to Resolution six, which concerns the election of Tim Bult as a Director. The resolution is displayed on the screen. The valid proxies received in relation to this resolution are also displayed on the screen. Tim was appointed to the Board in December 2025 as the nominee of Wesfarmers, BWP's largest security holder, and now offers himself for election by security holders. I'd like to invite Tim to address the meeting in relation to his election.
Thank you, Chair, and good morning everyone. Thank you for the opportunity to address you as you consider my candidacy for the BWP board. I might just start with a little bit on my education. I hold an honors degree in mechanical engineering and a Master of Business Administration. In 2008, I went off to Boston and attended the Advanced Management Program at Harvard Business School. From a career perspective, I started out working as a graduate engineer for a small consulting company many years ago. I then moved to a publicly listed energy company, which was a very entrepreneurial company, before commencing what was nearly a 27-year career working for the Wesfarmers Group. I was really fortunate during those 27 years to have the opportunity to work in a range of different roles. I managed to run businesses from end to end.
I ran and led two separate divisions in that time, and I also led the corporate business development function, which was responsible for the mergers and acquisitions of the group. Probably most notably during that time was the project director for the demerger and listing of the Coles Group. What I am committing here today is to bring, if I am elected to the BWP board, what I can call from that experience. Those areas that I see are relevant are around business performance, productivity, governance, sustainability, and value-added corporate transactions. I also bring the inverse experience as having overseen a portfolio of commercial properties from the lessee's perspective. I bring that to the table, along with a strong understanding of our largest security holder and tenant. It would be my honor to serve you as an ongoing director of BWP, should you elect me. Thank you.
Thank you, Tim. Are there any questions or comments on Resolution 6? As there are none, I will move to Resolution seven. Resolution seven seeks security holder approval for the issue of 237,392 performance rights to Mark Scatena under the long-term incentive component of the BWP Group employee incentive plan. The proposed grant forms the sole component of the managing director's financial year 2027 long-term incentive award. The proposed performance rights are subject to performance measures based equally on relative total security holder return and return on equity over the applicable three-year performance period. The performance rights will only vest to the extent that the relevant performance conditions are satisfied, subject to the terms of the plan and the board's discretions. The resolution is displayed on the screen. The valid proxies received in relation to this resolution are also displayed on the screen.
Are there any questions or comments on Resolution seven? There being none, I will move to Resolution 8. Resolution 8 concerns the appointment of KPMG as auditor of BWP Property Group Limited. KPMG was appointed as the company's auditor following the company's incorporation in 2025. Under the Corporations Act, that appointment continues only until the conclusion of the company's first annual general meeting. The company has received a valid nomination of KPMG, and KPMG has consented to act as auditor, subject to security holder approval. KPMG is also the auditor of BWP Trust and BWP Management Limited. The resolution is displayed on the screen. The valid proxies received in relation to this resolution are also displayed on the screen. Are there any questions or comments on Resolution 8? Geoff. Do you want to wait for the microphone? We have-
Hello. Thank you, Fiona. I think we can say that KPMG nationally have been beset by problems in the last year or so. We've had a Senate inquiry into their behavior. They've been disqualified from Australian government work. Lendlease, ANZ, and Macquarie Bank have chosen to not renew their audit contract with them. To say that the probity of KPMG has been in question, I think is a reasonable statement. Can you please tell the meeting what you and the board have done to satisfy yourself that the Perth office of KPMG has a high standard of probity so that makes them suitable to be our auditor?
Thanks, Geoff. Yes, obviously there's been a lot of comment in the press in relation to certain matters to do with KPMG, particularly, I think those relating to the East Coast offices. We have, as you would expect, sought and received in writing assurances from KPMG that nobody in their team has been involved in anything that is the subject of those inquiries and issues that you've raised, and that none of BWP's information has been of issue there either. So we have satisfied ourselves that the people that we deal with here are still of an appropriate quality.
I guess my only other comment would be in a firm of 9,000 people, I think the vast majority of them are probably doing the right thing, as evidenced by the Principia report that KPMG had recently commissioned, which is available for people to read in detail if they would like. Certainly from our point of view, we went early and we got those assurances. We are absolutely fine with that.
Thank you.
Thank you. Are there any other questions? If not, then we will move forward to the completion of voting, and this is your final opportunity to vote. We will proceed with the voting on all resolutions, which will be conducted by poll. The persons entitled to vote on the poll are all security holders, representatives and attorneys of security holders, and proxy holders who hold green admission cards. On the reverse of your green admission card is your voting paper and instructions. Proxy holders have attached to their admission card a summary of proxy votes, which details the voting instructions. By completing the voting paper, you are deemed to have voted in accordance with those instructions. In respect of any open votes a proxy holder may be entitled to cast, you need to mark a box beside the motion to indicate how you wish to cast your open votes.
Security holders also need to mark a box beside the motion to indicate how you wish to cast your votes. Please complete your voting paper and place it in the ballot boxes that the Computershare representatives are taking around the room. It is good timing. Does anyone need any more time to complete their voting paper? There being no request for additional time, I now declare the poll closed. No further votes may be submitted. The formal results of the poll will be released to ASX later today and made available on BWP's website. I would like to thank all security holders for attending. I now declare the annual general meetings of BWP Property Group Limited and BWP Trust closed. I welcome you to join the directors and senior management for refreshments. Thank you and good morning.