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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| CT Property Trust Limited | LSE:BREI | London | Ordinary Share | Ordinary Shares |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 84.00 | 84.00 | 84.60 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMBREI
To: Company Announcements
Date: 22 October 2020
Company: BMO Real Estate Investments Limited
LEI: 231801XRCB89W6XTR23
Subject: Trading Update and Net Asset Value
Background
BMO Real Estate Investments Limited ("BREI" or the "Company") provides an
update on trading and the net asset value as at 30 September 2020.
Net Asset Value ('NAV')
The unaudited NAV per share of BREI as at 30 September 2020 was 94.8 pence.
This represents a decrease of 1.9 per cent from the NAV per share as at 30 June
2020 of 96.6 pence and a NAV total return for the quarter of -1.3 per cent.
The NAV is based on the external valuation of the Company's property portfolio
prepared by Cushman & Wakefield. The valuation certificate no longer includes a
'material uncertainty' clause that had been in place for the previous two
quarters.
The NAV is calculated under International Financial Reporting Standards
("IFRS").
The NAV includes all income to 30 September 2020 and is calculated after the
deduction of all dividends paid prior to that date.
Breakdown of NAV movement
Set out below is a breakdown of the change to the unaudited net asset value per
share calculated under IFRS over the period from 30 June 2020 to 30 September
2020.
Pence % of
per opening
share NAV
Net asset value per share as at 30 June 2020 96.6
Unrealised movement in valuation of property (2.0) (2.1)*
portfolio (including the effect of gearing)
Movement in revenue reserves 0.2 0.2
Net asset value per share as at 30 September 2020 94.8 (1.9)
* The un-geared decrease in the valuation of the property portfolio over the
quarter to 30 September 2020 was 1.5%.
Share Price
The share price was 51.6 pence per share as at 30 September 2020, which
represented a discount of 45.6 per cent to the NAV per share announced above.
The share price total return for the quarter was -6.9 per cent.
Performance
The property market had started to show some tentative signs of improvement as
government restrictions eased. Investment activity saw a partial recovery,
helped by overseas buying, with rent collection rates generally improving. Any
improvement was however from a very low base with underlying performance
polarised. A widespread or lengthy return to restrictions could compound
existing structural challenges for parts of the economy.
There was further downward pressure on valuations in our retail portfolio with
the sector remaining troubled. The retail warehouse portfolio was less affected
with these properties almost entirely let to functional, convenience,
non-fashion tenants. There has been much debate around the future shape of the
office market combined with a recent increase in available space and this
sector has delivered a muted performance over the period. Industrial, logistics
and distribution, which accounts for 44.1 per cent of the Company's portfolio,
continue to offer relative resilience, reflected in increased investment demand
and strong take-up.
The portfolio remains substantially let, to a diversified tenant base, with a
vacancy rate of 3.3 per cent. The high allocation to Industrial, logistics and
distribution assets in the south east and the absence of any exposure to the
leisure and hospitality sectors has been particularly helpful to the Company's
rent collection statistics. Against the backdrop of continued uncertainty in
the occupier markets, the focus remains on working with our tenants to deliver
mutually beneficial outcomes at this difficult time and ensuring the recovery
of income due under contractual leases.
Rent Collection
The Company has a highly diverse tenant base, the vast majority of whom
continued to trade through the lockdown. The Managers have continued to engage
with tenants given the challenges faced by many to meet quarterly rental
commitments at this time. The portfolio has no exposure to the hotels, student
and leisure subsectors and only two restaurant tenants, although it does have
occupiers linked to these sectors through the supply chain. We summarise below
our current rent collection outcome for Quarter 2 and 3 as well as providing an
update on collection to date for Quarter 4.
Quarter 2 and 3 collection (billed between 26 March 2020 and 1 September 2020)
The Company has collected 93.9 per cent of its quarter 2 rents due and 91.6 per
cent of its quarter 3 rents, giving a combined collection rate of 92.8 per
cent.
Collection by sector:
Rent Billed Collected
(GBPm) (%)
Industrial, logistics and distribution 2.9 99.2
Offices 2.4 98.3
Retail Warehouse 1.8 92.2
Retail 1.1 65.6
Total 8.2 92.8
Breakdown of uncollected rent:
Total Outstanding Rent Billed
(GBPm) (%)
Agreed deferments 0.1 0.8
Rent waived 0.1 0.5
Unresolved / in discussion 0.4 5.9
Uncollected Rent 0.6 7.2
Quarter 4 Collection (billed between 29 September 2020 and 1 December 2020)
The Company has billed c.GBP3.2m of its quarter 4 rent due from 29 September to
date and has collected 76.8 per cent of this total amount (compared to 89.7 per
cent for the same period last year and 65.1 per cent after the same number of
days last quarter). This percentage will increase as tenants with whom we have
agreed monthly payment arrangements, but have been billed quarterly, pay
further instalments. The total quarterly rent amounts to c.GBP4.1 million with
further contractual billing dates during the course of October and November.
Collection rates are expected to be similar to those for the previous quarter
with many of the retail occupiers paying monthly. Such terms have also been
granted to selected occupiers within other sectors where it continues to be
appropriate to offer cashflow assistance at this time.
Collection by sector:
Rent Billed Collected
(GBPm) (%)
Industrial, logistics and distribution 1.2 87.5
Offices 0.7 88.9
Retail Warehouse 0.7 65.7
Retail 0.6 54.6
Total 3.2 76.8
Breakdown of uncollected rent:
Total Outstanding Rent Billed
(GBPm) (%)
Monthly payments* 0.4 13.5
Unresolved / in discussion 0.3 9.7
Uncollected Rent 0.7 23.2
* tenants who have been billed for the quarter but are paying in monthly
instalments.
Cash and Borrowings
The Company has approximately GBP14.6 million of available cash and an undrawn
revolving credit facility of GBP20 million. The GBP90 million long-term debt with
Canada Life and the undrawn loan facility with Barclays do not need to be
refinanced until November 2026 and March 2025 respectively. As at 30 September
2020, the LTV was 25.2 per cent and there was significant headroom under debt
covenants.
Dividend
On 26 August 2020, the Company announced its quarterly dividend payment of
0.625 pence per ordinary share in respect of the financial year ended 30 June
2020, which was paid to shareholders on 30 September 2020. The Board will
continue to monitor closely the impact of Covid-19 on rental receipts and
earnings and keep the future level of dividends under review.
Portfolio Analysis % of % capital
portfolio value
GBPm as at movement in
30 Sept 2020 quarter
Offices 92.5 30.0 (1.9)
* West End 28.3 9.2 (2.0)
* South East 36.7 11.9 (2.9)
* Rest of UK 27.5 8.9 (0.4)
Industrial, logistics and distribution 136.0 44.1 0.4
* South East 136.0 44.1 0.4
Standard Retail 30.7 9.9 (6.0)
* West End 7.8 2.5 (6.0)
* Rest of London 1.8 0.6 (5.3)
* South East 15.3 5.0 (5.7)
* Rest of UK 5.8 1.8 (6.9)
Retail Warehouse 49.4 16.0 (2.9)
Total Property 308.6 100.0 (1.5)
Summary Balance Sheet
Pence %
GBPm per share of Net Assets
Property Portfolio per Valuation Report 308.6 128.2 135.2
Adjustment for lease incentives (3.6)
(1.5) (1.6)
Fair Value of Property Portfolio 305.0 126.7 133.6
Cash 14.6 6.1 6.4
Trade and other receivables 7.0 2.9 3.1
Trade and other payables (8.8) (3.7) (3.9)
Interest-bearing loans (89.6) (37.2) (39.2)
Net Assets at 30 September 2020 228.2 94.8 100.0
The property portfolio will next be valued by an external valuer during
December 2020 and the net asset value per share as at 31 December 2020 will be
announced in January 2021.
Important information
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014. Upon the publication of this announcement via Regulatory
Information Service this inside information is now considered to be in the
public domain.
Enquiries:
The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
Tel: 01481 745001
Peter Lowe
Scott Macrae
BMO Investment Business Ltd
Tel: 0207 628 8000
END
(END) Dow Jones Newswires
October 22, 2020 02:00 ET (06:00 GMT)
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