Notwithstanding Motley Fool has still kept it as BUY (please double check) and Shaw Brokers has published SELL recommendation today
I personally sold BWP few months ago but I am never an astute trader or investor by my own performance . SO DYOR
“BWP Trust (BWP)
Rating: Sell | Risk: Low | Price Target: $2.89Bunnings vacating ~7 BWP properties; FY17 guidance unchanged; Medium term impact TBD
Event: Bunnings has advised BWP of its intention to vacate “up to seven” existing properties owned by BWP. This event was largely foreshadowed by the announcement from Bunnings on 24 Aug 2016. BWP has reaffirmed FY17 DPS guidance of “about 3 %” growth.
Recommendation: There is no shorter term impact on BWP’s earnings as Bunnings is responsible for paying rent up until the end of its existing lease term at each property. The medium to long term potential earning impact of these departures is dependent upon whether BWP: (1) looks to re-lease the properties to other tenants (i.e. bulky good retailers); (2) redevelop the sites for alternative uses; or (3) sell the properties. Clearly options 2 & 3 would be EPS dilutive until either redevelopment is completed or funds are reinvested. Quantifying the exact impact is difficult at present given the lack of detail. By way of sensitivity, if we assume the stores are smaller-sized (say $15m average value) and average about $1.3m pa of rent, then under a sale scenario there would be a ~2.5% dilutive impact to EPS on an annualised basis (pre any reinvestment of proceeds). We will revisit our EPS estimates as/when more detail is provided. Regardless, we continue to see BWP as fully valued and retain our SELL.“