BMO Com Pty Tst Ltd Trading update and NAV release
29 Abril 2022 - 3:00AM
UK Regulatory
TIDMBCPT
To: Company Announcements
Date: 29 April 2022
Company: BMO Commercial Property Trust Limited
LEI: 213800A2B1H4ULF3K397
Subject: Trading update and NAV release for BMO Commercial Property
Trust Ltd (the "Company" or "BCPT")
Headlines
* Net Asset Value total return of 7.4 per cent for the quarter ended 31 March
2022
* Share Price total return of 11.0 per cent for the quarter ended 31 March
2022
* A 6.7 per cent increase in the monthly dividend to 0.40 pence per share
with effect from May 2022
Net Asset Value
The unaudited net asset value ('NAV') per share of the Company as at 31 March
2022 was 144.0 pence. This represents an increase of 6.6 per cent from the
audited NAV per share as at 31 December 2021 of 135.1 pence and a NAV total
return for the quarter of 7.4 per cent.
The NAV has been calculated under International Financial Reporting Standards
('IFRS'). It is based on the external valuation of the Company's property
portfolio which has been prepared by CBRE Limited.
The NAV includes all income to 31 March 2022 and is calculated after deduction
of all dividends paid prior to that date. The EPRA Net Tangible Assets (NTA)
per share as at 31 March 2022, which is adjusted to remove the fair value of
the interest rate swap, was 143.9 pence.
Analysis of Movement in NAV
The following table provides an analysis of the movement in the unaudited NAV
per share for the period from 31 December 2021 to 31 March 2022 (including the
effect of gearing):
Pence per % of
£m share opening
NAV per
share
NAV as at 31 December 2021 1,017.5 135.1
Unrealised increase in valuation of property 60.5 8.0 5.9
portfolio
Movement in fair value of interest rate swap 0.5 0.1 0.1
Share buy-backs (19.7) 0.8 0.6
Other net revenue 8.3 1.1 0.8
Dividends paid (8.4) (1.1) (0.8)
NAV as at 31 March 2022 1,058.7 144.0 6.6
Valuation
The capital value of the Company's portfolio increased by 5.4 per cent over the
quarter. The valuation continued to reflect a similar pattern to recent
quarters with industrial, logistics and retail warehouses driving performance.
There has been both rental growth and further yield compression as many
investors seek to acquire in these sectors.
Retail warehouses delivered the strongest gains in the portfolio this quarter
with values increasing by 16.7 per cent. This is the sixth consecutive quarter
of capital appreciation in the sector, demonstrating the resilience of the
format and sustainability of the rents for good retail parks.
Industrial and logistics continued their strong run with a valuation increase
of 12.1 per cent. Supply and demand dynamics remain tight with occupational
take up at record levels in 2021. Industrial rents continue a process of
rebasing at higher levels, which continues to drive sector performance. The
portfolio's exposure to the industrial and logistics sector now stands at 32.6
per cent (30.6 per cent at 31 December 2021).
St Christopher's Place increased in value by 0.1 per cent as it starts its
recovery from the many challenges it faced over the last two years. This
represents the first quarter the estate has increased in value since the outset
of the pandemic. Activity has rebounded well with many of the food and beverage
occupiers reporting ongoing improving trade. We are hopeful that this trend
will continue throughout the year, supported by the much-anticipated opening of
the Elizabeth Line.
The valuation of the office portfolio fell by 0.8 per cent, reflecting a muted
quarter for the sector. We are seeing a healthy level of occupational activity
for prime offices, illustrating the continued "flight to quality" from
occupiers in terms of accommodation quality, amenity and sound ESG credentials,
all characteristics that have been central to our long-term strategy.
Share Price
As at 31 March 2022, the share price was 115.4 pence per share, which
represented a discount of 19.9 per cent to the NAV per share. The share price
total return for the quarter to 31 March 2022 was 11.0 per cent.
Cash and Borrowings
The Company had £113.0 million of available cash as at 31 March 2022 and has
committed approximately £23.6 million of this to development opportunities.
This is primarily at Burton-Upon-Trent and there is also a development at
Estuary Business Park, Speke, Liverpool where construction cost is expected to
be in the region of £4.8 million and a redevelopment of an obsolete warehouse
unit at the Cowdray Centre, Colchester with costs estimated to be in the region
of £5.7million. There is a £260 million term loan in place with L&G which
matures in December 2024. The Company also has a £50 million term loan with
Barclays, along with an additional undrawn £50 million revolving credit
facility. The Barclays facility expires on 31 July 2023, with the option of a
one-year extension. As at 31 March 2022, the Company's loan to value, net of
cash ('LTV') was 15.7 per cent.
Dividend
The Company paid three monthly property income distributions during the quarter
at a rate of 0.375 pence per share. A further monthly distribution is scheduled
to be paid at this rate on 29 April 2022.
As announced on 19 April 2022, the monthly distribution rate will be increased
to 0.4 pence per share from May 2022 and the first distribution to be paid at
this rate will be payable on 31 May 2022.
Share Buybacks
The Company has continued a share buyback programme during the quarter.
17,733,360 ordinary shares were purchased over the period and the programme is
ongoing. As at 31 March 2022 the Company had 63,993,638 shares held in treasury
(8.0 per cent of ordinary shares in issue), acquired at an average discount to
NAV of 21.0 per cent.
Portfolio Analysis - Sector Breakdown
Portfolio % of portfolio as % capital value
Value at shift (including
£m 31 March 2022 purchases and
CAPEX)
Offices 384.6 30.4 -0.8
West End 88.0 7.0 -0.1
South East 68.7 5.4 -2.0
South West 30.8 2.4 2.8
Rest of UK 177.7 14.1 -1.3
City 19.4 1.5 0.0
Retail 188.5 14.9 0.6
West End 159.7 12.6 0.7
South East 28.8 2.3 0.1
Industrial 412.4 32.6 12.1
South East 61.6 4.9 6.6
Rest of UK 350.8 27.7 13.1
Retail Warehouse 152.5 12.0 16.7
Alternatives 127.8 10.1 0.4
Total Property 1,265.8 100.0 5.4
Portfolio
Portfolio Analysis - Geographic Breakdown
Market % of portfolio as
Value at
£m 31 March 2022
West End 306.1 24.3
South East 301.5 23.8
Midlands 299.1 23.6
North West 171.0 13.5
Scotland 137.9 10.9
South West 30.8 2.4
Rest of London 19.4 1.5
Total Property Portfolio 1,265.8 100.0
Top Ten Investments
Sector
Properties valued in excess of £200 million
London W1, St Christopher's Place Estate * Mixed
Properties valued between £70 million and £100 million
Newbury, Newbury Retail Park Retail Warehouse
Solihull, Sears Retail Park Retail Warehouse
Properties valued between £50 million and £70 million
Chorley, Unit 6 and 8 Revolution Park Industrial
Properties valued between £40 million and £50 million
Winchester, Burma Road Alternative
Liverpool, Unit 1, G.Park Industrial
London SW19, Wimbledon Broadway ** Mixed
Birmingham, Unit 8 Hams Hall Industrial
Daventry, Site E4, DIRFT Industrial
Markham Value, Orion 1 & 2 Industrial
* Mixed use property of retail, office, food/beverage and residential space.
** Mixed use property of retail, food/beverage and leisure space.
Summary Balance Sheet
£m Pence per % of Net
share Assets
Property Portfolio 1,265.8 172.2 119.5
Adjustment for lease incentives (20.5) (2.8) (1.9)
Fair Value of Property Portfolio 1,245.3 169.4 117.6
Trade and other receivables 28.9 3.9 2.8
Cash and cash equivalents 113.0 15.4 10.7
Current Liabilities (17.5) (2.4) (1.7)
Total Assets (less current liabilities) 1,369.7 186.3 129.4
Non-Current liabilities (2.2) (0.3) (0.2)
Interest-bearing loans (308.8) (42.0) (29.2)
Net Assets at 31 March 2022 1,058.7 144.0 100.0
The next quarterly valuation of the property portfolio will be conducted by
CBRE Limited during June 2022 and it is expected that the unaudited NAV per
share as at 30 June 2022 will be announced in July 2022.
Important information
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014. Upon the publication of this announcement via Regulatory
Information Service this inside information is now considered to be in the
public domain.
Enquiries:
Richard Kirby
BMO REP Asset Management plc
Tel: 0207 499 2244
Graeme Caton
Winterflood Securities Limited
Tel: 0203 100 0268
END
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April 29, 2022 02:00 ET (06:00 GMT)
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