Balanced Commercial Prop... Share Discussion Threads

[spectoacc] 10/8/2021 06:24

For an idea of the hidden value in BCPT (IMO!), see DLN this morning. 2.5%! They can claim development value, but UCLH are there until 2039:


"West End Properties


The largest property being acquired is 250 Euston Road NW1 which totals 165,900 sq ft and sits on a 1.6 acre site2. This freehold office building is let in its entirety to University College London Hospital ('UCLH') on a lease expiring in 2039. The passing rent is £4.7m or just £28 per sq ft, which is subject to 2.5% fixed annual increases compounded every five years. The next uplift is due in April 2024 when there is also a tenant break with breaks every 5 years thereafter. In the longer term, there is an opportunity to create a larger scheme on this potential Life Science site. The total consideration is £189.9m inclusive of costs, and the initial yield is 2.5% reflecting the low passing rent.


The second property acquisition is 171-174 Tottenham Court Road W1 which lies opposite our Network Building. The purchase is a freehold office and retail building totalling 16,200 sq ft and is multi-let, producing an income of £0.6m. This property, together with adjoining UCLH and UCL interests, forms an important strategic holding in a larger block with longer term development potential. The total consideration is £24.7m inclusive of costs providing a net initial yield of 2.6%
"

[spectoacc] 09/8/2021 13:33

Last co purchase looks to be 4p over the next highest price paid. Glad they got some early ones in in size, and anything up to £1 (on a £1.24+ NAV) seems fine to me. But much higher & the argument for it becomes finer.


"PURCHASE OF OWN ORDINARY SHARES

On 6 August 2021 the Company purchased 613,618 Ordinary Shares at a price of
97.49 pence per share. These shares will be held in treasury."

[cwa1] 04/8/2021 13:49

BMO Commercial Property Trust Limited today announces a monthly property income distribution payment in respect of the financial year ended 31 December 2021, of 0.35 pence per share as detailed in the schedule below:

Ex-Dividend Date
Record Date
Pay Date 12 August 2021
13 August 2021
31 August 2021

[sphere25] 03/8/2021 15:21

Of course it can breakout, new high with the price currently at 96p.

There has been a 10k iceberg in the market mopping everything up but...

Did you spot it?

And when will it meet its match?

Turtle power!

All imo
DYOR

[sphere25] 02/8/2021 13:06

Some buy backs going on here of late - a sign of value?

Price is testing a breakout, currently sat just above the highs at 94.7p. Very slow and boring one this. Teases alot like SREI did a while back just above that 40p level, but can it breakout?

All imo
DYOR

[hindsight] 27/7/2021 12:36

They seem to be doing better than shb, perhaps St Christophers is less tourist excentric

[nickrl] 27/7/2021 12:17

BrightTalk had BMO property team on a webinar last week

hxxps://www.brighttalk.com/webcast/13051/496223

at about 16.30 one of the BCPT inv mgrs gives an overview of the trusts properties not St Christophers place though!

[spectoacc] 27/7/2021 11:32

Am assuming all come with incentives, but mightily impressed with the vacancy rate. Given a fair wind (ie no more major Covid waves, tourism eventually returning), BCPT is primed to go. West End primed.

[nickrl] 27/7/2021 09:56

Indeed it almost as though nothing major has happened over the last year! They've done some very tasty lettings but can't believe they didn't involve some lease incentives in there somewhere but none mentioned.

[chrisdgb] 27/7/2021 08:20

Looking good here, nice to see low LTV and expect further shift in the mix of the portfolio........

[vacendak] 27/7/2021 07:17

:)

Get a thumbs up.

[spectoacc] 27/7/2021 06:05

I was 0.2p out:


"The unaudited net asset value ('NAV') per share of the Company as at 30 June
2021 was 124.8 pence. This represents an increase of 4.4 per cent from the
unaudited NAV per share as at 31 March 2021 of 119.5 pence and a NAV total
return for the quarter of 5.3 per cent."


Rent collection & West End (inc offices) still a WiP, but look at that very low void rate, and c.20% LTV. Very fond indeed of BCPT.

[spectoacc] 26/7/2021 06:09

Continue to be impressed with BCPT's buyback - another 2m at c.91p, they don't mess around and still a huge discount to their 119.5p NAV (IMO nearer 125p).

[cwa1] 15/7/2021 07:33

XD here today, pay day 30/7

[hindsight] 08/7/2021 17:07

nickrl, any views how things look for shb ?, only one I have never added to, in fact sold some to buy bcpt, 3 months odd ago

[nickrl] 08/7/2021 09:47

GPORs trading update this morning more positive than I expected so ought to underpin BCPT and negate my pessimism over St Christophers Place being a drag.

[vacendak] 07/7/2021 08:40

The rising NAV is more of a "refloating" NAV, after all, these are the same buildings - minus one as you mentioned.

This is from page 41 of the latest AR:
"The Group’s property portfolio accounted for 97 per cent of its total assets
as at 31 December 2020. Although valued by an independent firm of
valuers, CBRE Limited, the valuation of the investment property portfolio
is inherently subjective, requiring significant judgement by the valuers."

I assume CBRE Ltd also provide their services to other REITs, so technically BCPT's NAV should rise back with the tide. Slowly recovering NAV, reassuring LTV and good relations with Barclays for the credit line; everything points to a less gloomy future.

Even if worst comes to worst, with COVID spouting out variants every week and more respiratory diseases crippling the world; it comes down to "return to normal" happening before the end of life of BCPT's asset... or me collapsing before the next dividend. :)

Anyway, I topped up a tad at 92.8p and these are already in the black.

[spectoacc] 06/7/2021 12:22

BREI undoubtedly good value IMO, with the high Industrials weighting.

But BCPT special - no one else has the West End exposure, and whilst it cost them before, I think it'll work in their favour on full reopening.

Last 3 NAVs:

31/03/21 - 119.5p
31/12/20 - 117.5p
30/09/20 - 116.9p

That's despite paying a monthly divi.

They then made an asset sale at a 7.2% premium to the 31/03 NAV. Whilst it's possible they were selling the jewels, they've no pressing need to.

Both BREI & BCPT got chunky offices exposure, which I think can go either way. Stimulus-inspired boom, and offices return to something not far off where they were. Permanent WFH changes, inflation, CapEx for greening, moving out of cities, and offices risk, at least in places, being the new Retail.

Bottom line for me is that BCPT is both unique & cheap, vs depressed earnings & a rising NAV. Arguments against are the future for offices, and if travel ever returns to normal (West End requiring tourists). Despite all the positive noises on reopening, there's no sign of that yet.

But paid to wait.

[nickrl] 06/7/2021 10:22

St Christophers place weighs heavily over this one and you can be sure behind all the positivity about new leases there will be a lot of rent free involved and more than likely turnover related rents so i would expect NAV to drift a little lower then stabilise until a clearer picture emerges over tourism and return to office. As Specto says now they've got a covered dividend that has some margin of comfort they are actually more desirable than they were pre Covid.

Toss up between them and BREI but like all big fund run REITs they don't like to give too much away on specific property details like AIRE, RGL etc do.

[spectoacc] 06/7/2021 08:55

Good luck - has buyback support too, last was 2m shares at 91p on 18th June.

Previous NAV 119p, hoping for nearer 125p soon. As you say, 155p a long way off, but BCPT/FCPT spent years over-paying a divi that they couldn't easily cut, and now on a much sounder footing.

As with some of the other small REITs, hard to see how can go wrong at this discount/yield, barring calamity. Hopefully we've seen that already.

[vacendak] 06/7/2021 08:46

I have topped up a bit yesterday.
It may no longer be worth 155p like in the olden days, but it should definitely be worth more than 100p when people go back in the restaurants and cafes of St Christopher's Place.

[nickrl] 21/6/2021 08:45

Another 2m bought back

[vacendak] 15/6/2021 16:54

The last three of us are at -2 now!
... and this one should earn me a -3. :)

Anyway, let's ignore this indeed.

[cwa1] 15/6/2021 14:51

Happens on quite a few threads, some very sad and pathetic folk out there. Best just to ignore

[vacendak] 15/6/2021 09:58

Why do we all get a thumb down on every single post in this thread?
@Specto
You seem to get hit twice too, any spurned lover of yours? :)