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Started: gulfharbour, 12 Jun 2024 09:29
Last post: TerryM1, 13 Jun 2024 12:42
IMO this was caused a lot because of poor regulation of LDIs, pension schemes used these to get cash which they invested in REITs while they were expanding i.e. shares raises. After the Gilt crash they needed to sell the REITs to cover liabilities and since then there is just not enough cash around/willing to take up this shortfall. Sure REIT share prices would have gone down anyway but not to this extent. We are now looking at a situation where a lot of people are nursing loses and desperate to reduce these so the only way out is to sell off all the properties in the REIT and return funds. When interest rates drop eventually the prices will go up and pressure reduced to shut down but this seems to go back by 1 month every month. For now make to most of it, high yield, potential capital growth or more money returned if closed down. The REITs should take some of the blame, instead of looking for more cash to expand they could have paid of some debt and used some new debt to buy back shares along with a few property sales when prices crashed, this would reduce to size of the REIT market place and increase NAV. At some point after a number of REITs are folded, interest rates reduced there will be a better balance between REITs and cash available/willing to invest.
It's just so frustrating seeing many Reits disappearing off the market.
Abrdn offloading all their Reits: UKCM, ASLI, and API (I'm a shareholder in API).
I also own a few small Reits that are prone to be dismantled because of their small market caps such as: SERE, AIRE, and AEWU
Agreed on all those points money hoarder, however when the SP is so far below the NAV for any extended period, then the board must take some sort of action which BCPT are doing by having the review.
Don't get me wrong because I would like to continue receiving monthly a solid and growing div, but I also want the SP to be a more accurate reflection of the company prospects and assets.
The review has been ongoing since April I believe, so I expect we should get some further update not long after the AGM on 20th June where they have stated they will also canvas further shareholder suggestions.
Also the mere fact that the board announced the review was maybe a good indirect way of soliciting expressions of interest from those "interested 3rd parties", some of which may view the current depressed SP as a great time to table bids for some or all of the company properties before the inevitable recovery in the UK commercial property market.
I know the discount to NAV has been wide for awhile now, but I don't want to see this REIT being sold off.
-The properties are great.
-The properties will regain some value when the BOE rates come down.
-And I enjoy the monthly dividend.
St Christopher's Place is a very attractive asset in the west end of London. I expect it will be key to unlocking the value of this reit.
Started: KAF444, 2 May 2024 14:19
Last post: KAF444, 18 May 2024 11:33
Looking up previous june dates should be between 9th-15th June ex dividend.
Don't look good.
Thanks legsofman
NBMI, but it’s being wound up.
Smif appears to be the last monthly paying IT..
Quite a few monthly payers in the fund space. Depends what you are after as risk/asset location.
Started: InvestorTim, 17 May 2024 07:44
Last post: InvestorTim, 17 May 2024 07:44
No obvious surprises on first read. That was supposed to sound positive.
Started: tickhilltim, 15 Apr 2024 13:54
Last post: legsofman, 15 Apr 2024 20:36
If every trust decided to shutdown because of a discount there would be very few left.
Get a grip.
Doesn’t it sound a bit feeble? Why trumpet that they are going to do something that should be a normal part of a competent boards duties? Bringing in the lawyers and starting the fee gravy train for the leeches.
And telling the world that they are not optimistic about the commercial property markets.Will be seen to be a desperate seller if they decide to go down the voluntary liquidation route.
If they wanted a merger,surely they should be doing this on the quiet.Maybe they have and it has fallen apart.Noticeable rise in share price contrary to many others in same sectors.
Shareholders are invited to write to the chairman with views.Unusal ,but welcome.
Sounds as if the board does not have the energy to acquire struggling smaller funds in the sector?
Hope so Shrek
Yes me too KAF444 ! nice steady divi with a decent yield
I do wonder if this is a ploy to try and get the share price closer to NAV and to say no sorry we are keeping on keeping on rather than a sale.
I will vote for keeping the company going nice to have monthly divs
Balanced Commercial Property Trust commences strategic review due to 'material' discount
https://www.investmentweek.co.uk/news/4197134/balanced-commercial-property-trust-commences-strategic-review-material-discount
Now?
Cheers
It was tipped in Investors Chronicle.
Purchased my first load today.
Some REITs are currently very undervalued,
I am adding a few between now and the new year with inflation dropping and potentially interest rates at the back end of next year.
40% discount to NAV
Monthly yield approx 7%
And a good net gearing of under 30.
Started: jonathb, 19 Oct 2023 16:32
Last post: CaneToad, 1 Nov 2023 09:07
@jonthb: No, I don't think there's anything unusual about being commercial RE. Being a REIT means that the company itself doesn't pay tax, but instead YOU do. But whether or not YOU do, depends on what type of account you have; e.g. none within an ISA or SIPP
Does BCPT.L mean a 20% withholding if kept in a normal brokerage ac? I ask because it's a REIT, but about commercial RE, maybe that's somehow different?
Started: dalius, 14 Sep 2023 07:40
Last post: CaneToad, 15 Sep 2023 11:40
Nice 10% divi rise; yield now a respectable 7.5%, paying monthly. LTV of just 23.7% and weighted average interest rate of 3.6%.
The Board is pleased to report its intention to increase the level of the monthly dividend by 10.0 per cent to 0.44 pence per share with effect from the October 2023 distribution.
Started: HENRYKISS, 28 May 2023 12:47
Last post: HENRYKISS, 28 May 2023 12:47
Podcast with Tom Caddick of Nedgroup Investments.
A discussion that is highly relevant to BCPT investors...worth a listen..
https://www.realvision.com/podcast/next-big-trade/page/1
Last post: InvestorTim, 21 Mar 2023 14:53
Me too. Is there some concern over commercial property outlook maybe?
LSE has this as 4.6% div yield but it is actually closer to 6%. The discount to NAV is over 30% but property values fell 15% in the last quarter.
I think the almost 100m share buy backs were a mistake. Its ok to say they were at a discount to NAV of 20% but they now represent approx. 20% premium to the current share price. IMO It would have been better to let the share price slide and dividend yield increase. Use the money to increase dividend and pay off debt.
I agree this business is competitively valued and has a good dividend (although this is still 20% below the 2009-2020 level).
Surprised not more interest here…..nice base and dividend
Happy with the way this one going. You’d think Commercial Property might weaken with all the problems interest rate rises might bring.
I’m glad I’ve got these on drip feed. Have a feeling these might make 100 before the end of the year
Started: kt1588, 31 Jan 2023 11:01
Last post: kt1588, 31 Jan 2023 11:01
The last trading/NAV update suggested a further update would follow in January. Did I miss it?
Started: Oldworldorder, 5 Sep 2022 17:13
Last post: Oldworldorder, 5 Sep 2022 17:13
Some inflation hedge this turned out to be !
The buy back is a support as well. Almost 6M shares bought back this month so far.
Nav of 148p but SP is 26% discount. This one takes patience.... monthly dividend of 0.40p helps a bit.
Started: 54retiresoon, 27 Jan 2022 07:46
Last post: 54retiresoon, 29 Apr 2022 08:47
Latest Update out. NAV at end of March 144p driven by rise in property valuations. Share price should sit north of 120p
Another stonking update NAV up to 135.1p (from 130p at previous quarter). 98% rent collection and sale proceeds starting to be deployed, 6% of shares bought back. Another dividend rise in 3 months on the cards?
Started: adv11, 19 Apr 2022 11:38
Last post: adv11, 19 Apr 2022 11:38
Results for 2021, and new Dividend declaration - both missed by LSE
https://www.londonstockexchange.com/news-article/BCPT/results-for-the-year-ended-31-december-2021-audited/15414850
BMO Commercial Property Trust Limited today announces a monthly property income distribution payment in respect of the financial year ended 31 December 2022 of 0.4 pence per share as detailed in the schedule below. This is a 6.7 per cent increase on the previous monthly property income distribution of 0.375 pence per share.
Started: Cool_as_Steel, 25 Feb 2022 08:38
Last post: Cool_as_Steel, 25 Feb 2022 08:38
Get investing then, you wont make money just counting it.
BMO Commercial Property Trust (UK, B4ZPCJ0) will be added to the FTSE 250 Index and deleted from the FTSE SmallCap Index.
All changes effective from 31 January 2022.
Started: W.H.L., 25 Jan 2022 13:54
Last post: W.H.L., 25 Jan 2022 13:54
Nice to see capital being deployed. Logistics exposure increasing, which seems logical in current environment.
Unaudited NAV in October was £1.30 so more to go hopefully.
Started: jamesmaggs, 9 Sep 2021 21:35
Last post: 54retiresoon, 19 Oct 2021 08:47
Should be a trading update next week. NAV should rise signifcantly even without an increase in property valuations. They have sold 2 properties at a £17.5m uplift to NAV at 30th June (+1.3p), share buybacks in quarter should add an extra 1p and revenue should exceed dividends paid by c. 0.3p (allowing for reduced revenue from sales). NAV (before property valuation adjustments) should be around 127.5. Buybacks at 20%+ discount to NAV.
It must also be getting close to point where dividend starts to rise at which point I'd expect a further re-rate.
another return to circa 100p!
Just top sliced about a third of my holding and will buy back on the next dip sub 95p which on current form might be as soon as next week.
BCPT has a solid portfolio but seems to be swinging quite regularly in the 94p to 98p range.
This has given some trading opportunities but I will still keep the core holding long term
Been doing the numbers this week...looks like I will hit my ISA limit sooner rather than later so this may have to wait... I'll either trade into it from another share or wait till next year...see which comes first.
Think it's still under the radar especially with the spotlight on triple point at the moment.
They just sold a good asset at a decent premium so fingers crossed it’ll up the nav a bit and hope they reinvest right….good recovery continues GLA
Last post: MMA_Hemp, 4 Sep 2021 14:03
The website itself would benefit from photos of each property...save investors having to use google earth.
Might ping them an email see if they have a brochure...
Many thanks 54rt. Just could not find it on an initial search.
I'm expecting a rebound in commercial property as we progress through the next few years... more flex working, but office space will still be required.
This would complement my small position in EPIC nicely...although currently the divs for that seem to pay off my monthly account fees so it's a it cash neutral currently.
https://www.bmogam.com/uploads/2021/08/2a64973c59f13a9ee889868cdb55e49d/bmo-commercial-property-trust-factsheet.pdf
Page 2 shows properties valued over £30m
Hello, just looking into this as part of my dividends portfolio. I like an undervalued REIT, this looks to be the case.
Does anyone have a link to the actual property or asset portfolio, similar to other REITs. I like to be able to review the properties, see some photos. I've done the usual searches, but not unable to find much on their website. Thanks for any help...
Started: W.H.L., 12 Aug 2021 16:02
Last post: 54retiresoon, 4 Sep 2021 08:54
Property sale was £20m - so could be up to that amount.
Guess I am the only one on the board.....ha ha....nice compared to some of the other shoot to the moon boards
Anyone know how much the buy back limit is?
I see they mention they are using proceed from sale of East Kilbride property but can't see a limit quoted anywhere.
Last post: BigCamera, 4 Aug 2021 10:27
Nice to see the SP reaching new high levels, confidence in this share - can see it a good long term hold.
GLA
Started: jamesmaggs, 28 May 2021 20:04
Last post: jamesmaggs, 28 May 2021 20:04
Not to mention the monthly yield which irons out the exdiv drops somewhat. Held these pre-pandemic over a quid, added massively during and now in recovery mode and today’s news shows they are mindful of the discount to nav and buybacks are a big topic but in this case I’d say they are seeing the value in buying back stock as like us they think it’s too cheap. SREI by comparison was very actively buying back and it did eventually get the SP back up which makes me think it’s a good idea.
The graph fwiw shows a huge recovery from the banking crisis and I’m thinking as and when normality returns those London assets particularly will bear fruit and those of us adding and holding now onwards will also receive a cracking income relative to risk,not to mention the .35pps was .5pps monthly not so long ago! GLA
Started: Pangloss73, 28 May 2021 12:59
Last post: Pangloss73, 28 May 2021 12:59
Very nice RNS this morning. The fact that we were able to sell an asset at 7.2% ABOVE its last valuation, shows that the high discount to NAV may be unwarranted. The share buy back should also help reduce this discount. What's not to like?