Balanced Commercial Prop... Share Discussion Threads

[vacendak] 28/1/2022 17:11

A lot of see-sawing to end up at close only 0.8p up from last Friday.

Oh well, we shall take that 0.8p then. It could have been far worse considering what has happened to the market at large.

[spectoacc] 27/1/2022 07:07

Still doing c.5p/qtr in NAV, amazing. Void rate down to 2%.


Edit - interesting report. Buybacks added a decent chunk (1.1p), and St Chris's marked down a further 1.5%, yet completely at odds with how it's performing (footfall back to 2019 levels, despite Omicron). So at some stage those ongoing write-downs should become write-ups. But not, despite what I'd hoped, just yet.

In meantime, BCPT can still do c.5p/qtr regardless, so NAV now c.135p with all the St Chris's effect still ahead.

The acquisitions in the qtr will have also dragged a touch - 5% stamp duty.

Divi to go up again once excess cash deployed - interesting to see where it goes, in what's a strong market.

[spectoacc] 21/1/2022 09:35

And justifiably so.

Unique asset, if London/St Chris's has turned, we're off to the races. Back to par, but a par higher than last NAV, and no longer over-paying divis.

[vacendak] 21/1/2022 09:24

Another week like this one and we would be close to pre-COVID prices.

[vacendak] 17/1/2022 17:37

+3.35% today, nice reaction to the RNS.

[nickrl] 17/1/2022 10:53

I feel logistics is getting a tad over extended and this RNS confirms it so i can't see much scope for more gain in this class but nether can see it going backwards either as a big chuck of the move in line is permanently baked in now. Then you have CapCo RNS today as well which shows that people facing operations be it retail, eating out or leisure is far from dead and this will undoubtedly have positive read across to St Chris valuation. Have to say been caught off guard with resilience of footfall in London and presumably other cities and should have struck more heavily when we had the Omicron dip in Nov.

[spectoacc] 17/1/2022 10:18

Ha ha well done hanging in there - and you've had the divis along the way.

[vacendak] 17/1/2022 10:16

The batch I bought at 109.50p back in July 2016 is now back in the black!

We only blabbed about Brexit back then and circa 110p looked like "blood in the streets" compared to the more sedate 130-150 range we were used to.

[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.