Balanced Commercial Prop... Share Discussion Threads

[spectoacc] 06/7/2021 13:22

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 11:22

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 09:55

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 09:46

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 09:45

Another 2m bought back

[vacendak] 15/6/2021 17:54

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 15:51

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

[vacendak] 15/6/2021 10:58

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? :)

[spectoacc] 14/6/2021 11:40

I reckon NAV nearer 125p than 119p, but even if 119p, purchases at c.92p are highly accretive.

[hindsight] 14/6/2021 10:29

Would prefer they dont chase it and keep hoovering up at a wide discount that adds NAV for the exsisting holders

[spectoacc] 14/6/2021 09:04

862k at 91.64p - they're fairly serious. And rightly so IMO.

[spectoacc] 11/6/2021 14:42

They haven't said how far they'll push the buyback - 92p the highest paid so far - but IMO the NAV could be nearer 125p atm, & no reason they can't get a lot closer to that.

But I would say that.

[vacendak] 11/6/2021 11:53

A bit old (end of May) but I only picked it up yesterday.

Can this climb back towards 150p?

[vacendak] 08/6/2021 12:04

I like the buybacks, with the shares held in treasury thus limiting the costs to reissue when things turn to a premium. I mean a few years ago, BCPT was always selling at a premium, so this could happen again.

This works fine for standard ITs, ITs that hold shares in other companies. Calculating the NAV is basically a daily spreadsheet exercise (assuming the investee companies are listed and traded enough).

In this case though, with the NAV being calculated only every quarter or so, my question is: How can they judge the share price to be "at a significant discount" when deciding to do a buyback? Especially if this is done quite a while after the last building valuation exercise.

Again, I am all in favour of correcting the mispricing and see the NAV go up thanks to lower divisor.

[spectoacc] 07/6/2021 11:11

Good spot, missed that they'd started. 2m at over 90p, shows they're committed. Still hoping for an increase in last NAV (119.5p) at next report.

Buyback was mentioned in the property sale RNS of 28th May.

[nickrl] 07/6/2021 11:09

I see they bought 2M shares on Friday



do they have share buyback programme now?

[cwa1] 03/6/2021 15:33

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 10 June 2021
Record Date 11 June 2021
Pay Date 30 June 2021

[hindsight] 29/5/2021 09:55

Spectoacc, doubt they sold thier most unloved asset at present, so will personally still work on 119p. Seems to me 25% discount is standard in reit petites, as intend to hold long term them buying in shares at the widest discount possible rather than chasing it suits me
What calayst will merge reit petites im not sure, 5% vs 0.5% stamp is one as you say, us shareholders at 51% is another. As we know its happened all across the IT world, IGC being the latest I own that has adopted a discount mandate

[spectoacc] 29/5/2021 08:16

@hindsight - last NAV 119p, yesterday's sale at 7% above. Purchaser will have paid another 5% in stamp duty, so can stretch an argument real NAV is 125p + uplifts. So I'm perfectly comfortable with any share purchases below say 110p, against a written-down NAV.

(If BCPT were buying in this bubble market, they'd be paying the 5% SDRT, vs 0.5% share stamp on shares).

I see big NAV potential in St Christopher's - balanced by the possibility lockdown may extend. But the London retail angle surely means BCPT not a suitable merger candidate (whether a bid candidate is another matter).

SREI and BREI? SLI? UKCM? But they're all very cosy with their managers/Boards/strategies, not sure what it would take to force any of them together.

[cwa1] 28/5/2021 11:08

Seems to be having an effect!

[hindsight] 28/5/2021 11:08

Yes happy with the buyback too at yesterdays discount, not quite as clear today. Would like to see some mergers and cost cuts. Why cant the BCPT & BREI both BMO merge for instance and the savings lead to higher returns for us shareholders

[cwa1] 28/5/2021 07:58

Normally I'm not a HUGE fan of buy-backs but in some cases, such as companies trading at big discounts to their ACTUAL assets, I'm reasonably happy with them. So knock yourselves out chaps :-)

[spectoacc] 28/5/2021 07:48

Last NAV 119.5p, and this individual sale 7% above that - I'm all for buy-backs down here.

[cwa1] 28/5/2021 07:32

Share buy-backs, hmmmm

[spectoacc] 28/5/2021 07:17

7.2% above March valuation, tho looks a decent property/covenant.


"Property Sale

BMO Commercial Property Trust Limited (LSE: BCPT) is pleased to announce the disposal of a solus retail warehouse located in East Kilbride, Scotland.

The Company has sold the retail warehouse for a total consideration of £19million, reflecting an increase of 7.2% over the last external valuation of 31 March 2021. The property is let to B&Q Limited for one of its large format stores on a lease due to expire in November 2029.

This sale is entirely consistent with the strategy of adopting a higher level of activity within the portfolio as the Company moves to recycle capital and adjust sector weightings. As previously indicated, priority will be given to using sales proceeds to buy-back shares in the Company if the high level of discount persists and if the Board believes that this course of action is in the best interests of all shareholders. Accordingly, the Board have resolved to commence a share buy-back programme.Property Sale

BMO Commercial Property Trust Limited (LSE: BCPT) is pleased to announce the disposal of a solus retail warehouse located in East Kilbride, Scotland.

The Company has sold the retail warehouse for a total consideration of £19million, reflecting an increase of 7.2% over the last external valuation of 31 March 2021. The property is let to B&Q Limited for one of its large format stores on a lease due to expire in November 2029.

This sale is entirely consistent with the strategy of adopting a higher level of activity within the portfolio as the Company moves to recycle capital and adjust sector weightings. As previously indicated, priority will be given to using sales proceeds to buy-back shares in the Company if the high level of discount persists and if the Board believes that this course of action is in the best interests of all shareholders. Accordingly, the Board have resolved to commence a share buy-back programme.