16th Apr 2020 18:31
(Alliance News) - BMO Commercial Property Trust Ltd on Thursday said it underperformed its benchmark in 2019, as it reported a fall in its net asset value.
The investment company - formerly known as F&C Commercial Property Trust Ltd - posted a net asset value total return of negative 2.1%, lagging behind its benchmark - the MSCI Index - which returned 1.3%.
The share price at the end of the year was 115.6 pence representing a 12% discount to the net asset value per share of 130.9p. The stock closed 8.9% lower on Thursday in London at 67.30p each.
BMO said its performance was hurt by its retail portfolio, with the period recording a reduction in the value of the St. Christopher's Place Estate and the retail parks at Newbury and Solihull. The industrial portfolio also underperformed due to the impact of "a handful" of near-term
lease expiries and break-clauses. Additionally, the valuation of its distribution unit at Daventry - let to Mothercare PLC - was reduced due to future occupational uncertainty.
Twelve monthly interim dividends - each of 0.5p per share - were paid during the year, maintaining the annual dividend of 6.0p per share.
In a separate statement, BMO noted that the Covid-19 outbreak has hurt its business.
NAV per share as at March 31 was 124.3p, falling by 5.0% from the audited NAV per share as at December 31 of 130.9p. NAV total return for the quarter was negative 3.9%. As at March end, the share price was 74.5p.
The company said its projects at St Christopher's Place and Solihull Retail Park have been suspended and it has experienced difficulty collecting rent from its London-based retail and leisure properties.
It said it has billed around GBP9 million of its rent meant to be paid by March 25 and has collected 74% of the amount, down from 96% collected in the same period in 2019. It stated that it expects the overall percentage collected across its portfolio for the second quarter to drop, adding that it expects the third quarter rent collection commencing in June to be equally challenging.
BMO said that to conserve cash, it will temporarily suspend its monthly dividend payment of 0.5p until conditions improve. Additionally, it has deferred all uncommitted capital expenditure.
The company currently has cash of around GBP20 million and an undrawn revolving credit facility of GBP50 million.
By Ife Taiwo; [email protected]
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