BMO Com Pty Tst Ltd Trading update and NAV release
January 29 2021 - 1:01AM
UK Regulatory
TIDMBCPT
To: Company Announcements
Date: 29 January 2021
Company: BMO Commercial Property Trust Limited
LEI: 213800A2B1H4ULF3K397
Subject: Trading update and NAV release for BMO Commercial Property
Trust Ltd (the "Company")
Headlines
· Net Asset total return of 1.2 per cent for the quarter ended 31 December
2020
· Share Price total return of 25.3 per cent for the quarter ended 31
December 2020
· Combined rent collection received to date for quarter's 2 to 4 of 2020
at 87.1 per cent
· Rent collection currently received to date for quarter 1 2021 of 75.1
per cent
· As at 31 December 2020, the void rate was 2.9 per cent, reduced from
3.2% at the previous quarter end due to a letting at Watchmoor Park, Camberley.
Net Asset Value
The unaudited net asset value ('NAV') per share of the Company as at 31
December 2020 was 117.5 pence. This represents an increase of 0.5 per cent from
the unaudited NAV per share as at 30 September 2020 of 116.9 pence and a NAV
total return for the quarter of 1.2 per cent.
The NAV has been calculated under International Financial Reporting Standards
('IFRS'). It is based on the external valuation of the Company's property
portfolio which has been prepared by CBRE Limited.
The NAV includes all income to 31 December 2020 and is calculated after
deduction of all dividends paid prior to that date. The EPRA NAV per share as
at 31 December 2020, which is adjusted to remove the fair value of the interest
rate swap, was 117.5 pence.
Analysis of Movement in NAV
The following table provides an analysis of the movement in the unaudited NAV
per share for the period from 30 September 2020 to 31 December 2020 (including
the effect of gearing):
% of
Pence opening
per NAV per
£m share share
NAV as at 30 September 2020 934.1 116.9
Unrealised increase in valuation of 2.7 0.2 0.2
property portfolio
Movement in fair value of interest rate 0.1 - -
swap
Other net revenue 9.5 1.2 1.0
Dividends paid (6.8) (0.8) (0.7)
NAV as at 31 December 2020 939.6 117.5 0.5
Valuation
The capital return of the Company's portfolio was 0.2 per cent for the quarter.
The industrial and logistics portfolio performed strongly, increasing by 6.7
per cent in the quarter. This not only reflected strong evidence from the
capital markets supporting further yield compression in the sector but also the
completion of a notable lease re-gearing and substantive progress on a number
of other lease events.
The retail and leisure sectors continue to be marked down, with the London
assets at St Christopher's Place and Wimbledon Broadway falling by 3.6 per cent
and 6.5 per cent respectively. These decreases reflect a further outward
adjustment in yields as well as adjustments to estimated rental values. The
retail warehouse portfolio did, however, increase in value by 3.4 per cent
reflecting the completion of a number of asset management initiatives, in
particular the building works for the new Marks and Spencer store at Solihull.
The valuation of the office portfolio fell marginally during the quarter, with
positive returns from the West End being offset by valuation falls in the south
east and regions, specifically on properties with shorter lease terms.
Share Price
As at 31 December 2020, the share price was 80.0 pence per share, which
represented a discount of 31.9 per cent to the NAV per share. The share price
total return for the quarter to 31 December 2020 was 25.3 per cent.
Rent Collection
We summarise below our current rent collection outcome for Q2 to 4 2020 as well
as providing an update on collection for Quarter 1 of 2021.
Q2 to Q4 2020 Collection (billed between 26 March 2020 and 1 December 2020)
Overall collection for the nine-month period is at 87.1 per cent and the
breakdown is detailed below:
Rent Billed Collected
(£m) (%)
Quarter 2 16.3 86.5
Quarter 3 16.3 86.3
Quarter 4 16.5 88.6
Total 49.1 87.1
Collection by sector:
Rent Billed Collected
(£m) (£m) (%)
Industrial 10.0 9.9 99.4
Offices 20.7 19.7 95.3
Retail Warehouse 5.8 4.9 83.0
Retail 9.2 5.8 63.1
Alternatives 3.4 2.5 73.5
Total 49.1 42.8 87.1
Breakdown of uncollected rent:
Total Outstanding Rent Billed
(£m) (%)
Agreed deferments 1.2 2.5
Rent waived 0.8 1.7
Bad Debts 0.1 0.2
Monthly payments* 0.1 0.2
Unresolved / in 4.1 8.3
discussion
Uncollected Rent 6.3 12.9
* tenants who have been billed for the quarter but are paying in monthly
instalments.
There remains a significant proportion of uncollected rent in the retail and
leisure sectors of the portfolio. Since early November, London has been placed
under varying levels of Government restrictions and non-essential retail,
restaurants and leisure at St Christopher's Place and Wimbledon have only been
able to open for approximately 2 weeks since then. This extended period of
closure has created an extremely challenging position for the occupiers; losing
the peak trading period and the opportunity to begin to recover previously lost
sales. These restrictions have been extended to the rest of the UK as the
country went into full lockdown. At the present time, there is no certainty on
timings of the lifting of Government restrictions and when non-essential
retail, restaurants and leisure will be able to re-open. It is an extremely
challenging environment in which to secure rent collection and the Managers'
continue to engage with tenants to deliver constructive outcomes and provide
support where it is deemed appropriate.
Q1 2021 Collection (due to be billed between 25 December 2020 and 1 March 2021)
The total quarterly rental payments for Quarter 1 amount to c.£16.5 million.
The Company has billed £12.9m of its Quarter 1 rent due from 25 December to
date and has collected 75.1 per cent of this total amount (compared to 96.4 per
cent for the same period last year and 75.9 per cent after the equivalent
number of days in Quarter 4). The balance of rent will be billed on the
relevant due dates during the course of January and February.
Collection by sector:
Rent Billed Collected
(£m) (£m) (%)
Industrial 3.0 2.6 86.3
Offices 5.0 4.4 89.4
Retail Warehouse 1.1 0.7 60.0
Retail 2.9 1.2 42.8
Alternatives 0.9 0.8 80.4
Total 12.9 9.7 75.1
Breakdown of uncollected rent:
Total Outstanding Rent Billed
(£m) (%)
Agreed deferments 0.1 0.6
Rent waived 0.1 0.6
Monthly payments* 0.8 6.0
Outstanding 2.2 17.7
Uncollected Rent 3.2 24.9
* tenants who have been billed for the quarter but are paying in monthly
instalments.
Trading and Development Activity
St Christopher's Place Estate
Notwithstanding the challenges highlighted above, there has been some
successful activity centred around the repositioning of James Street with the
following leasing activity;
· 36 James St: following the surrender of the T Burrows lease, a new
letting completed to 'Chrome'.
· Exchanged on a new letting to 'Papa-dum' at 20 James St, which is
expected to complete by end Q1 2021.
· The contractor completed building works at 54/56 James St and a new
letting to 'Sidechick' has exchanged, with completion targeted by end Q1 2021.
This restaurant is a new concept from the owners of Patty and Bun, an existing
tenant on the Estate, and underwrites their support for the location.
· Secured a new letting of office space at 3-5 Barrett Street and
completed a number of lease renewals with office tenants.
We are encouraged by these new leases which give an indication that some
occupiers are looking beyond the short-term challenges presented by Covid for
the Estate to the opportunities that should exist longer term.
Retail Parks
On the two principal retail parks, Sears Retail Park, Solihull and Newbury
Retail Park, Newbury, most retailers reported a pre-Christmas spike in turnover
after re-opening following the end of the second lockdown period. Car parks at
both locations were busy and occasionally bordering on full capacity at
Solihull. Unfortunately, this was short lived for non-essential retailers,
especially at Newbury where they were forced to close again on 20 December 2020
having been classified in Tier 4. Those with a robust omni-channel offer and
"click and collect service" have continued to fare better.
At Sears Retail Park, Solihull, the landlord's works to construct the new M&S
store and refurbish the shopfront of the Food Hall unit adjoining this have now
been completed. The new M&S store was handed over to commence shop-fitting on
19 January 2021. M&S is expected to be ready to open their new flagship store
in June 2021.
There is some new retailer interest in the vacant units at Newbury and at
Solihull. Two of the retail units at Newbury, making up 20,000 sq. ft of retail
space, are now under offer with contracts due to exchange imminently.
Industrial and Logistics
A reversionary lease completed with the existing tenant at G Park, Liverpool, a
360,000 sq ft distribution warehouse. The 10-year lease with DHL Supply Chain
Limited from March 2021 has the benefit of a tenant break at the end of the
fifth year and the rent contracted at £5.25 sq ft reflects an uplift in excess
of 10 per cent on the current rent. DHL were granted a 6 months rent-free
period by way of 12 months at half rent. As a result, the valuation improved by
£4.475m over the quarter and the Company has de-risked the portfolio to its
second largest lease expiry in 2021. Good progress has also been made on a
number of other leasing events.
Offices
Work to refurbish the two floors and the reception at Watchmoor Park, Camberley
completed and Muller (Milk and More) entered into the lease of the 7,200sq ft
second floor at a rent of £23 psf for a term of 5 years with a tenant option to
renew for a further 10 years. At 2-4 King Street, London SW1, a lease re-gear
with one of the tenant's resulted in a further 5-year term certain on two of
the floors.
Capital Expenditure
Uncommitted capital expenditure continues to be deferred for the time being.
Cash and Borrowings
The Company had approximately £34.9 million of available cash as at 31 December
2020. There is long-term debt in place with L&G which does not need to be
refinanced until December 2024. The Company also has a Barclays £50 million
term loan along with an undrawn £50 million revolving credit facility which is
available upon the satisfaction of the relevant conditions to drawdown. The
Barclays facility expires on 31 July 2022, with the option of two further
one-year extensions. As at 31 December 2020, the Company's net loan to value
('LTV') was 22.6 per cent.
Dividend
An increase in the monthly dividend was introduced from December 2020 at a rate
of 0.35 pence per share. The latest statistics regarding the increased spread
of Covd-19 and the consequent lockdown has put additional strain on many of our
tenants and the future remains uncertain. Notwithstanding this, the Company
expects to continue to pay monthly dividends at this rate for the foreseeable
future, although the Board will monitor rental receipts and earnings closely
and keep the dividend under review.
Portfolio Analysis - Sector Breakdown
Portfolio % of % like for
Value portfolio as like capital
£m at value shift
31 December (excl
2020 transactions)
Offices 518.2 42.2 -0.1
West End 206.5 16.8 0.8
South East 75.3 6.1 -0.7
South West 31.4 2.6 -1.2
Rest of UK 185.3 15.1 -0.7
City 19.7 1.6 -0.5
Retail 226.7 18.5 -4.8
West End 166.4 13.5 -5.7
South East 29.0 2.4 -6.9
Rest of UK 31.3 2.6 1.8
Industrial 234.9 19.1 6.7
South East 28.8 2.3 -0.4
Rest of UK 206.1 16.8 7.8
Retail 122.3 10.0 3.4
Warehouse
Alternatives 125.8 10.2 -0.9
Total Property 1,227.9 100.0 0.2
Portfolio
Portfolio Analysis - Geographic Breakdown
Market % of portfolio
Value as at
£m 31 December
2020
West End 434.3 35.4
South East 249.3 20.3
Scotland 163.7 13.3
North West 156.4 12.7
Midlands 151.7 12.4
South West 31.4 2.6
Eastern 21.4 1.7
Rest of London 19.7 1.6
Total Property Portfolio 1,227.9 100.0
Top Ten Investments
Sector
Properties valued in excess of £250 million
London W1, St Christopher's Place Estate * Mixed
Properties valued between £100 million and £150
million
London SW1, Cassini House, St James's Street Office
Properties valued between £50 million and £70
million
Newbury, Newbury Retail Park Retail Warehouse
Solihull, Sears Retail Park Retail Warehouse
Properties valued between £40 million and £50
million
London SW19, Wimbledon Broadway ** Mixed
Winchester, Burma Road Alternative
Properties valued between £30 million and £40
million
Manchester, 82 King St Office
Crawley, Leonardo House, Manor Royal Office
Aberdeen, Unit 2 Prime Four Business Park, Office
Kingswells
Aberdeen, Unit 1 Prime Four Business Park, Office
Kingswells
* Mixed use property of retail, office, food/beverage and residential space.
** Mixed use property of retail, food/beverage and leisure space.
Summary Balance Sheet
£m Pence % of
per Net
share Assets
Property Portfolio 1,227.9 153.6 130.7
Adjustment for lease incentives (22.7) (2.8) (2.4)
Fair Value of Property Portfolio 1,205.2 150.8 128.3
Trade and other receivables 32.3 4.0 3.4
Cash and cash equivalents 34.9 4.4 3.7
Current Liabilities (22.6) (2.8) (2.4)
Total Assets (less current liabilities) 1,249.8 156.4 133.0
Non-Current liabilities (1.7) (0.2) (0.2)
Interest rate swap (0.2) (0.1) 0.0
Interest-bearing loans (308.3) (38.6) (32.8)
Net Assets at 31 December 2020 939.6 117.5 100.0
The next quarterly valuation of the property portfolio will be conducted by
CBRE Limited during March 2021 and it is expected that the unaudited NAV per
share as at 31 March 2021 will be announced in April 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:
Richard Kirby
BMO REP Asset Management plc
Tel: 0207 499 2244
Graeme Caton
Winterflood Securities Limited
Tel: 0203 100 0268
END
(END) Dow Jones Newswires
January 29, 2021 02:01 ET (07:01 GMT)
F&c Commercial Property (LSE:FCPT)
Historical Stock Chart
From Mar 2024 to Apr 2024
F&c Commercial Property (LSE:FCPT)
Historical Stock Chart
From Apr 2023 to Apr 2024
