Balanced Commercial Prop... Share Discussion Threads

[cwa1] 15/10/2021 14:48

100p back on the bid. Will it hold?

[cwa1] 06/10/2021 15:02

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 14 October 2021
Record Date 15 October 2021
Pay Date 29 October 2021

[spectoacc] 06/10/2021 10:06

SP likely depends on whether the buyback in operation on any particular day. They seem quite variable with it, but if it means buying in cheap stock (below £1), fine with me.

[cwa1] 06/10/2021 09:45

Had a small nibble at 94p

[vacendak] 05/10/2021 11:23

It just refuses to break 100p and stay above it!

[vacendak] 30/9/2021 16:29

It is nice to see BCPT behave more like an investment trust, i.e. buy stuff, sell it higher, rinse and repeat; instead of the previous behaviour: Buy properties, collect rent and not much else.

However, as noted in the previous post, I am not sure either what they can buy right now "on the cheap" with the proceeds, especially if they want to move away from retail.

I agree that the buybacks should still remain option number one, as long as they trust the valutations of the various buildings we own of course; thus take advantage of the discount.

The ESG talk is becoming "Meghan & Harry" level irritating though. BCPT is about brick & mortar in the UK... not some diamond mine in a hell hole working on child labour.

[hindsight] 30/9/2021 11:23

Consistent with this strategy, we have completed
three important disposals worth £199.5 million during recent months as we move
to recycle capital and adjust sector weightings. The Company is carefully
considering the best use of the proceeds of the recent sales, including
attractive investment opportunities, share buybacks and capital expenditure
opportunities in the existing portfolio where planning consent has been
achieved, as well as future ESG related expenditure

At prices they are achieving still think share buybacks and planning gains best use. Seems nothing cheap to buy except other funds. They should open exploritory talks with thier stable mate BREI. Who seem to have a poor attitude to shareholders

[catch007] 30/9/2021 10:53

I thought the interims were very highly encouraging. Noted the dividend is under review on improving rent collections, yield is too low now imho. Sales have all been above held book valuations and improvement in footfall at key London site. Happy with continued buyback as NAV discount is way too high especially if above book value sales are being achieved. Retail continues to be the Achilles heel on rent collection however BCPT overall is showing clear signs of recovery.

[spectoacc] 30/9/2021 07:36

Little of note in the Interim Report, beyond them watching "very closely" what happens with manager BMO post-sale, but the disposal is another excellent NAV premium:


"BMO Commercial Property Trust Limited (LSE: BCPT) is pleased to announce the
disposal of its holding at Dane Street, Rochdale. The asset is a purpose-built
supermarket with a 12-pump filling station and an adjacent retail warehouse.

The Company has sold the properties for a total consideration of £35.0 million
at an initial yield of 4.75 per cent. The sale price reflects an increase of 9
per cent over the last external valuation at 30 June 2021 and 12 per cent over
the year-end valuation at 31 December 2020"


Again - c.124.5p NAV is far too low IMO.

Void rate also down to recent lows.

[spectoacc] 20/9/2021 07:19

"PURCHASE OF OWN ORDINARY SHARES

On 17 September 2021 the Company purchased 1,589,830 Ordinary Shares at a price
of 98.06 pence per share."


In size, and below £1, with potentially a lot more to come.

[vacendak] 12/9/2021 20:24

The joys of actually behaving like a "long term investor". At least I have never succumbed to fear and never sold, but I still fell for confirmation bias by refusing to have been wrong in buying it.

Some people were dropping very strong "Overpriced!" warnings when it was above 150, at a 5+% premium with the divi only 80% covered. I should have listened.

But hey! It is going up again. :)

[abergele] 12/9/2021 19:35

Vacendak,,post 194,
So sorry to read that,,,it's surprising how many people in so many different shares have been in that same situation,one way or another,,myself in EME.

I am recently involved in a few here, so fingers X'd..g l to all..

[vacendak] 10/9/2021 09:30

I think the "work from home" craze will subside after a while.
I started a new job "fully remote" in July, visiting once or twice a month, and thought it would be perfect. Right now, I am already looking to find something else more local so that I could go to an office.
The people are fine, but I am just bored stiff.

Extrapolating, I am pretty sure people will go back to those restaurants/cafes/offices in London for the same reasons. So I am not so surprised to see the acceleration of the recovery in footfall in those places.

What could still be true is that, number-wise, we may never get back to 2019 due to heatlth and safety adjustments, but the places could become "more premium" due to demand, all in all money could flow again towards BCPT.

[spectoacc] 10/9/2021 07:18

From Fulham Shore this morning, but with possible read-across to St Chris's:


"Since the Group's Final Results announced on 17th August 2021 Group revenues have continued to grow. In the three completed weeks since (up to 5 September 2021), Group revenues for all restaurants have increased 27% compared to the equivalent period in the 2019 calendar year.

This represents a marked acceleration from the 8% average increase for the eight weeks ended 15 August 2021 announced in the Final Results. The Group's 17 restaurants that are located in the West End of London and city centre office locations, although still down on 2019 levels, have, in these three weeks, continued to see a week-by-week improvement in footfall and revenues as tourists and office workers have started to return."

[vacendak] 09/9/2021 10:54

Well, this is the only thing going up today in my portfolio! :)

[spectoacc] 09/9/2021 10:08

Plus you're getting the monthly divis ;)

I'd like to see the divi rise soon - particularly if the proceeds from today's sale are deployed in the way they suggest.

[vacendak] 09/9/2021 10:00

I still should have sold at 155p all those years ago, but the future does not look as bleak as it used to for BCPT indeed.

The next thhreshold for me is 109p, for a batch I bought in July 2016 (Brexit time) to come into the black. I am still way underwater on that one, but as they say, I have lost nothing until the day I actually sell.

[spectoacc] 09/9/2021 08:16

It'll have an interesting effect on BCPT's sector split - they've been pretty large in offices, but this one sale is more than a tenth of the entire IT. Worth going back through the last NAV release, where the offices commentary was:

"Offices

Two significant events completed over the quarter. At Alhambra House in Glasgow
there was the completion of a lease extension with JP Morgan until 30 June
2023. The office building extends to c100,000 sq ft and for the period of the
lease extension the annualised rent will be £2,500,000, an uplift of £500k on
the passing rent.

At 17A Curzon Street in London there was the completion of a letting of the 2nd
floor to MA Family Office Ltd. The new 5-year lease has a tenant break after
the third year and a rent of £130,350 pa was agreed. The letting demonstrates
the increase in occupier activity in major cities as restrictions ease."


Very well done to BCPT, I'm in this for the longer term, it's woefully under-appreciated by the market.


Edit - the hard-to-read table near the end of the July NAV RNS stated Offices £520m, Retail £191m, Industrial £278m, Retail Warehouse £145m, Alternatives £126m. That's a big chunk of Offices converted into cash in a single sale, and I hope they use it to buy back shares - let others pay the silly prices/yields.

[essentialinvestor] 09/9/2021 08:10

Uber prime London office, the bullish view looks to be validated once again.

[cwa1] 09/9/2021 08:07

Modest reaction from the market BUT it is XD day AND markets are looking pretty fragile with yank futures well down

[vacendak] 09/9/2021 07:50

Good news indeed.
Now waiting for the reaction of Mr Market.

[chrisdgb] 09/9/2021 07:30

Wow...........

[spectoacc] 09/9/2021 07:27

Excellent. Personally, I'd be happy with aggressively continuing the buyback - it'd gone quiet for days, and share price slipped (prefer them to buy back under £1).

Getting that premium on an office building, in London, shows the value in the remainder of the portfolio IMO, inc St Christopher's.

Sell at 11% over NAV, buy shares at 23% discount to same NAV. What's not to like.

[cwa1] 09/9/2021 07:07

Chunky sale...

Property Sale

Disposal of Cassini House for £145.5m

BMO Commercial Property Trust Limited (LSE: BCPT) is pleased to announce the
disposal of Cassini House located in St. James', London. The property is a
prime multi-let freehold office building and represents the second largest
holding in the portfolio.

The Company has sold the property for a total consideration of £145.5million,
reflecting a substantial increase of 11 per cent over the last external
valuation of 30 June 2021 and 19 per cent over the year-end valuation of 31
December 2020. The disposal represents the culmination of a long-term business
plan which involved a complete refurbishment, introduction of new tenants and
re-gearing of leases.

This disposal is entirely consistent with the strategy of rebalancing the
portfolio and the Company will carefully consider the use of the proceeds in
the best interests of all shareholders. This includes further share buy-backs
as well as property acquisitions and capital expenditure opportunities in the
existing portfolio where planning consent has been achieved. The Company's
existing share buy-back programme is ongoing.

Richard Kirby, lead manager, commented:

"Following a competitive bidding process in which the Company received several
high-quality proposals, we are pleased to achieve a strong net initial yield1
of 3.2 per cent for this trophy property and crystallise significant value for
the portfolio. This disposal will allow the Company to promptly recycle capital
in a strong pipeline and adjust sector weightings. We look forward to providing
a further update of the use of proceeds in due course."

[cwa1] 01/9/2021 16:10

01 September 2021

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 0.35 pence per share as detailed in the schedule below:

Ex-Dividend Date 09 September 2021
Record Date 10 September 2021
Pay Date 30 September 2021