Share Name Share Symbol Market Type Share ISIN Share Description
Bmo Real Estate Investments Limited LSE:BREI London Ordinary Share GB00B012T521 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.80 1.08% 75.20 74.40 75.60 75.60 74.40 75.40 300,572 16:35:05
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment & Services 17.0 -8.9 -3.8 - 180

BMO Real Estate Investments Ltd Trading Update and Net Asset Value

27/04/2021 7:00am

UK Regulatory (RNS & others)

To:                   Company Announcements 
Date:                27 April 2021 
Company:        BMO Real Estate Investments Limited 
LEI:                  231801XRCB89W6XTR23 
Subject:           Trading Update and Net Asset Value 
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 
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 
                                                                  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) 
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. 
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 
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 
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 
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 
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 
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 
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 
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. 
The Company Secretary 
Northern Trust International Fund Administration Services (Guernsey) Limited 
Trafalgar Court 
Les Banques 
St Peter Port 
GY1 3QL 
Tel: 01481 745001 
Peter Lowe 
Scott Macrae 
BMO Investment Business Ltd 
Tel: 0207 628 8000 

(END) Dow Jones Newswires

April 27, 2021 02:00 ET (06:00 GMT)

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