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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: 27 April 2021
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 31 March 2021.
Net Asset Value ('NAV')
The unaudited NAV per share of BREI as at 31 March 2021 was 99.1 pence. This
represents an increase of 1.0 per cent from the NAV per share as at 31 December
2020 of 98.1 pence and a NAV total return for the quarter of 1.9 per cent.
The NAV is based on the external valuation of the Company's property portfolio
prepared by Cushman & Wakefield.
The NAV is calculated under International Financial Reporting Standards
("IFRS").
The NAV includes all income to 31 March 2021 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 31 December 2020 to 31 March
2021.
Pence % of
per opening
share NAV
Net asset value per share as at 31 December 2020 98.1
Unrealised movement in valuation of property portfolio 1.2 1.2*
(including the effect of gearing)
Realised loss on sale of property (including the effect of (0.4) (0.4)
gearing)
Movement in revenue reserves 0.2 0.2
Net asset value per share as at 31 March 2021 99.1 1.0
* The un-geared capital return of the property portfolio over the quarter to 31
March 2021 was 0.6%.
Share Price
The share price was 74.6 pence per share as at 31 March 2021, which represented
a discount of 24.3 per cent to the NAV per share announced above. The share
price total return for the quarter was 23.7 per cent.
Performance
The property market delivered positive total returns over the quarter buoyed by
encouraging news on the vaccine rollout and a timetable to the reopening of
parts of the economy that have remained closed for much of the pandemic.
Performance was largely driven by a strong showing from the industrial and
distribution sector where occupational fundamentals remain attractive and
investment demand has driven sharp yield compression. There was some improved
stability in retail markets, particularly retail warehousing, although shopping
centres and high street yields continued to soften. Sentiment has improved over
the period, however investors outside of the industrial and foodstore markets
remain cautious and transaction levels are subdued by historic standards.
The capital return for the Company's portfolio was 0.6 per cent for the
quarter. The return is net of expenditure on the two development projects at
Luton and Chelmsford and the impact of the disposal of a further asset from
the High Street portfolio at High Street Winchester below the 31 December 2020
valuation.
There was a 2.5 per cent increase in the valuation of the Industrial and
Logistics properties which now comprise 45.9 per cent of the portfolio.
Notwithstanding the fact that the retail portfolio remains fully let, there was
further downward pressure on valuations in the Company's high street portfolio
(weighting: 8.0 per cent) on account of negative sentiment towards the sector's
falling rents, lower rental recovery, and the fear of further tenant failures.
The retail warehouse portfolio (weighting: 16.5 per cent) continues to offer
relative resilience, being let primarily to 'essential' convenience,
non-fashion occupiers and demonstrating 95 per cent rent collection over the
full period of the pandemic. The strength of demand for long let foodstore
assets was a factor behind the significant contribution to performance made by
the pre-let supermarket development at Enterprise Way, Luton.
Investor and occupier caution linked to the potential for widespread adoption
of flexible working practices continues to dampen returns from the Office
sector (weighting: 29.6 per cent). There was further leasing progress on the
completed refurbishment project at County House, Chelmsford, where only one
floor remains vacant and this has contributed positively to returns over the
quarter.
As at period end the portfolio has a vacancy rate of 4.0% (by ERV) and an
average weighted unexpired lease term of 5.9 years.
Rent Collection
We summarise below our current rent collection outcome since the impact of
Covid-19 came into full force, for Q2 2020 to Q1 2021 as well as providing an
update on collection for Q2 of 2021.
Q2 2020 to Q1 2021 collection (billed between 26 March 2020 and 1 March 2021)
Overall collection over the twelve-month period is at 94.7 per cent and the
breakdown is detailed below:
Rent Billed Collected
(£m) (%)
Quarter 2 2020 4.1 93.3
Quarter 3 2020 4.1 94.5
Quarter 4 2020 4.2 96.8
Quarter 1 2021 4.2 94.2
Total 16.6 94.7
Collection by sector:
Rent Billed Collected
(£m) (%)
Industrial, logistics and 6.1 100.0
distribution
Offices 4.5 99.5
Retail Warehouse 3.7 94.9
Retail 2.3 70.7
Total 16.6 94.7
Breakdown of uncollected rent:
Total Outstanding Rent Billed
(£m) (%)
Agreed deferments 0.0 0.1
Rent waived 0.3 1.8
Unresolved / in discussion 0.4 2.2
Bad Debts 0.2 1.2
Uncollected Rent 0.9 5.3
The absence of any exposure to the shopping centre, leisure and hospitality
sectors has been a contributory factor toward the comparatively high level of
rent collection achieved by the Company. The focus remains on ensuring that
rental income is recovered where it is due under contract and can be paid,
whilst continuing to work with our occupiers to deliver mutually beneficial
outcomes in scenarios where tenants are under particular trading pressures and
prospects for recovery are challenged.
Quarter 2 2021 Collection (to be billed between 25 March 2021 and 1 June 2021)
The Company has billed c.£3.2m of its quarter 2 rent due from 25 March to date
and has collected 82.1 per cent of this total amount (compared to 79.0 per cent
for 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.£4.2 million with further contractual billing dates during the course of
April and May. Progress on collection is consistent with previous quarters with
total recovery by period end expected to be in line with trend over the course
of the pandemic.
Collection by sector:
Rent Billed Collected
(£m) (%)
Industrial, logistics and 1.3 94.4
distribution
Offices 0.6 87.2
Retail Warehouse 0.8 66.9
Retail 0.5 64.9
Total 3.2 82.1
Breakdown of uncollected rent:
Total Outstanding Rent Billed
(£m) (%)
Monthly payments* 0.1 4.5
Rent waived 0.0 0.3
Unresolved / in discussion 0.5 13.1
Uncollected Rent 0.6 17.9
* tenants who have been billed for the quarter but are paying in monthly
instalments.
Cash and Borrowings
The Company has approximately £15.7 million of available cash and an undrawn
revolving credit facility of £20 million. The £90 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 31 March
2021, the LTV was 25.3 per cent and there was significant headroom under debt
covenants.
Dividend
On 1 March 2021, the Company announced a quarterly dividend payment of 0.85
pence per ordinary share in respect of the financial year ended 30 June 2021,
which was paid to shareholders on 31 March 2021. The Board will continue to
monitor rental receipts and earnings closely and keep the future level of
dividends under review.
Portfolio Analysis £m % of % capital
portfolio as value
at 31 March movement in
2021 quarter
Offices 94.4 29.6 (0.6)
* West End 27.6 8.7 (1.4)
* South East 39.7 12.4 0.2
* Rest of UK 27.1 8.5 (0.8)
Industrial, logistics and distribution 146.2 45.9 2.5
* South East 146.2 45.9 2.5
Standard Retail 25.5 8.0 (0.6)
* West End 6.8 2.1 (4.2)
* Rest of London 1.7 0.5 (2.9)
* South East 11.6 3.6 0.6
* Rest of UK 5.4 1.8 (3.9)
Retail Warehouse 52.7 16.5 0.0
Total Property 318.8 100.0 0.8
Summary Balance Sheet
£m Pence % of Net
per Assets
share
Property Portfolio per Valuation Report 318.8 132.5 133.7
Adjustment for lease incentives (3.7) (1.5) (1.5)
Fair Value of Property Portfolio 315.1 131.0 132.2
Cash 15.7 6.5 6.5
Trade and other receivables 7.2 3.0 3.0
Trade and other payables (9.7) (4.0) (4.1)
Interest-bearing loans (89.7) (37.4) (37.6)
Net Assets at 31 March 2021 238.6 99.1 100.0
The property portfolio will next be valued by an external valuer during June
2021 and the net asset value per share as at 30 June 2021 will be announced in
July 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
April 27, 2021 02:00 ET (06:00 GMT)
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