Bunnings Property Trust (BWP) reported a net loss of $23.4 million for the 6 months to 31 December 2008 from a $33.9 million profit in the previous corresponding period. The company attributed the result to an unrealised net loss of $43.9 million on the revaluations to fair value of its property portfolio.

Bunnings said that despite the write down the company retained nearly $970 million in assets and would continue to look for opportunities for growth in 2009.

"Bunnings Warehouses will continue to be the primary focus for growth, through improvements to existing properties, rent reviews and acquisitions," the company said.

"However, acquisition opportunities will be considered in the context of prudent capital management, including maintaining an appropriate gearing level."

The property trust, whose primary role is landlord for the hardware giant Bunnings Warehouse, said that total liabilities at the end of last year were $393.5 million.

The company's gearing ratio, or debt to total assets, had jumped to 35.5%, up 8.3% from a year prior.

Bunnings Property Trust said the extra debt forced interest payments up nearly 25% to $10.7 million.

The group said that it had secured $380 million across the big four banks, and was actively reviewing debt facilities.

Revenue for the six months was $35.1 million, up 10% from the previous corresponding period, with a distributable profit up 3.7% to $20.5 million for the half.

The company reviewed the rental agreement for four of its properties, raising the rent by an average of 4%.

The company also reported the successful completion of its $24.1 million facility in Hawthorn, Victoria in October.

Bunnings Property Trust also purchased a 2.7 hectrare property in Mt Gravatt, Queensland from Bunnings Group Limited for $11.9 million. The company said it would lease back the property for $974,000 per year.

The board said it would increase its dividend by 2.3% to 6.7 cents per share.

At 1427, Bunnings Property Trust was up 2c to $1.57.