(Alliance News) - BMO Commercial Property Trust Ltd on Friday said its net asset value increased in the fourth quarter of 2020 after a strong industrial and logistics portfolio performance, though the outlook for retail and leisure is murky.
Shares in BMO Commercial Property were down 4.4% at 76.31 pence in London in morning trading.
The investment company, formerly known as F&C Commercial Property Trust Ltd, said its NAV per share as at December 31 was 117.5 pence, up from 116.9p on September 30.
Its industrial and logistics portfolio led the increase, rising 6.7% in the quarter, offsetting markdowns from retail and leisure sectors as well as a marginal decline in office portfolio valuation.
BMO Commercial Property collected 89% of the GBP16.5 million fourth quarter rent billed, up from 86% of the third quarter's GBP16.3 million rent billed.
However, only 63% of the GBP9.2 million retail rent billed for the fourth quarter was collected.
The trust acknowledged that: "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."
"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," BMO Commercial Property added.
For the first quarter of 2020, the trust has so far collected 75% of the GBP12.9 million rent billed, down from 96% in the same period of 2020 and 76% after the equivalent number of days in the fourth quarter of 2020.
As at December 31, BMO Commercial Property had GBP34.9 million of cash available and its net loan to value was 23%.
In December, the company introduced an increase in monthly dividend at a rate of 0.35p per share and expects to keep monthly dividends at this rate for the foreseeable future, though is keeping the dividend under review.
Recent activity from BMO Commercial Property includes a new letting completed at to Chrome at 36 James Street, following surrender of the T Burrows lease and the exchange on a new letting to Papa-dum at 20 James Street, set to complete by the end of the first quarter.
Moreover, building works at 54/56 James Street are complete and a new letting to Sidechick exchanged, set to complete by the end of the first quarter. It has also secured letting of office space at 3 to 5 Barrett Street.
Among retail parts, there was a pre-Christmas spike in turnover at Sears Retail Park, Solihull and Newbury Retail Park, Newbury among most retailers, though this was short-lives as Covid-19 restrictions were imposed.
By Anna Farley; annafarley@alliancenews.com
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Balanced Commercial Property Trust (BCPT)