Balanced Commercial Prop... Share Discussion Threads

[spectoacc] 17/1/2022 08:53

You'll have seen CAPC's comments this morning on London footfall (even with Omicron), and:

"As at 31 December 2021, the independent property valuation of Covent Garden was £1.7 billion, representing a like-for-like increase of 4.6 per cent in the second half of the year..".


If BCPT starts to see valuation improvement on St Chris's, then it's off to the races. Next NAV may tell us.

[spectoacc] 17/1/2022 08:09

Logistics here to stay, agreed. But yield compression - how much lower? 3.7% leaves little margin for error, and they can get more than that on their own shares, and buy in at a c.20% discount.

No need to acquire stuff on the cheap later - the capital would have been recycled more productively into lowering the share count, wouldn't need spending again.

Development stuff makes loads of sense - potentially twice the return on it.

But agree BCPT going back to par eventually :)

[vacendak] 17/1/2022 08:03

They bought some stuff to manage and lease, which is what we expect them to do.
The discount will not last, in normal times BCPT and its peers trade at a premium (people tend to obsess about brick-and-mortar). So, while buybacks would clearly be more effective now, once the discount has closed what would be left to acquire on the cheap?

As for logistics, it is here to stay. COVID or no COVID, the weekly shopping is now gone for my family. We get everything delivered. Laziness will endure and so will logistics/delivery and other activities that use warehouses intensively.


I say they should indeed take a few risks.

[spectoacc] 17/1/2022 07:31

Interesting RNS this morning. The self-build CapEx ones look great, exactly how BCPT ought to be adding value IMO.

Less convinced by the £44m acqn tho - 3.7%! Logistics, some RPI linkage, but are we nearer the bottom of the logistics boom, or the top? How much upside when the rent increases are limited by inflation?

I'd rather the £44m had gone on more buybacks at c.20% discount to next NAV.

[vacendak] 07/1/2022 16:38

The AR is coming soonish (April) we should have more details on the actual numbers linked to the buybacks.

Considering they never really did discount control before the COVID disruption, and when they do it they buy back big, it should be fair to assume that, yes, they expect the NAV to be sufficiently higher than the last published.

[spectoacc] 07/1/2022 16:08

106p a bit toppy for the buyback IMO, and 2m shares at that (and on a day when they closed at 104.2p). Comfortably 4p higher than the next highest I can recall.

Guess they'd argue last NAV 130p, next NAV will be higher still, so still accretive.

And still preferable to over-paying for property (plus 5% stamp duty, vs 0.5% on the shares bought back).

[cwa1] 05/1/2022 17:05

5 January 2022

Dividend Declaration

(Classified Regulated Information, under DTR 6 Annex 1 section 2.3)

BMO Commercial Property Trust Limited today announces a monthly property income
distribution payment in respect of the financial year ended 31 December 2021 of
0.375 pence per share as detailed in the schedule below.

The key dates for this interim dividend are as follows:

Ex-Dividend Date 13 January 2022
Record Date 14 January 2022
Pay Date 31 January 2022

[spectoacc] 03/1/2022 08:15

Thanks @Vacendak, but article was from over a week ago (23rd Dec) - Citywire got a bit of a cheek sticking it back up again!

BCPT's next NAV will be interesting. If the valuers haven't marked down St Chris's too much on Omicron, I think we might be off to the races. A million or two shares a week being removed from the market by the buy-back.

[hindsight] 02/1/2022 11:04

Buybacks much preferable to special divi in my book due to the 20% odd value add. So happy to see them plod on

[vacendak] 02/1/2022 10:07

Mentioned here as "a hidden gem".

[spectoacc] 23/12/2021 15:17

I think in this scenario, either a special divi or buybacks. Just isn't much going cheap out there.

Isn't just discount, but also yield - saving the divi on each share bought back. They'd struggle to buy much at better yield unless they went junkier, & need to avoid cash drag.

[vacendak] 23/12/2021 15:10

The Q3 (September) factsheet has been up for a week or so.


Some of the sales have already been reported, but they also say that some of the proceeds have been used for share buyback, explaining the "big chunk" approach.
The average discount at buyback (up to end of September) has been 22.6%.

My only concern is that we are selling a lot but not buying anything. True, to buy something it would need to be more than 22.6% undervalued, so the buybacks do make sense but... the whole point of the trust is to hold brick and mortar stuff, isn't it?

[spectoacc] 23/12/2021 14:53

Wondering if today's the weekly buy-back day, pushing it up in a thin market (but hopefully not paying too much).

If Omicron is quickly over (as the R suggests), & we avoid the Wales/Scotland-style lockdowns, shouldn't be too much effect on BCPT IMO.

[vacendak] 23/12/2021 14:39

Climbing to 105p despite the omicron scare, so pretty good news.

[spectoacc] 06/12/2021 13:47

2m more bought on Friday. Still seems to be an approx once per week mammoth buyback. All good for NAV.

[spectoacc] 26/11/2021 11:21

Not sure that RNS is correct, c.1.5m purchased 26/11 (today), yet only 488k through the market this morning, and they've never reported same day before.

Price would work tho.

[spectoacc] 11/11/2021 08:20

The random buyback returns. All good for our NAV, nicking them below £1, but no consistency in when they do it.

[nerja] 05/11/2021 13:46

Given me a chance to top up, ex div next week so good chance this is mms trying to get stock

[spectoacc] 05/11/2021 13:09

Lol fair point - let's see what it closes at! The buyback seems very variable in operation - last 3 were 100.16p on 22/10, 102.72p on 29/10, and 102.73p on 03/11. Nothing inbetween.

[nerja] 05/11/2021 11:00

Wonder if £1 will now be the floor, rather than the ceiling.

Err nope!

[spectoacc] 01/11/2021 09:27

"On 29 October 2021 the Company purchased 2,000,000 Ordinary Shares at a price of 102.72 pence per share. These shares will be held in treasury."


Highest by some distance (just over a quid previous highest I've seen), but justified by the +5p reported NAV rise. Still a decent discount to 130p NAV, still highly accretive.

Wonder if £1 will now be the floor, rather than the ceiling.

[spectoacc] 29/10/2021 06:03

And a rising NAV at that. In the meantime, 0.35p a month, rising to 0.375p. Which depending how many you have, is not to be sniffed at :)

[boozey] 28/10/2021 19:40

A slow but steady long overdue re-rating to close that gap on NAV

[hindsight] 26/10/2021 08:29

For me its about 2 years time here and SHB. If T/O rents mean near 100% occupancy so rates, service charges covered and then some rent for loan payments so no shareholder dillution