31st Oct 2022 13:58
Balanced Commercial Property Trust Ltd - UK commercial property investor - Net asset value at September 30 falls 6.1% to 139.6 pence per share from 148.6p at June 30. NAV total return turns to negative 5.2% from positive 5.0% a year ago. The company says it paid three monthly property income distributions at a rate of 0.4p per share, up 6.7% on the declared quarterly dividend of 0.375p a year ago. As at the end of September, the share price was 80.2p per share, down 17% from 96.3p a year prior. The share price of 80.2p share price at September 30 represented a discount of 43% to the NAV per share of 139.6p.
"Sentiment towards real estate turned negative over the period in the face of, in particular, significant inflationary pressures and increasing interest rates. The government's mini budget further fuelled the negative sentiment, as the reaction of the bond market triggered a liquidity event for pension funds. We are already beginning to witness more property coming to the market as pension funds look to raise liquidity and this is likely to put further downward pressure on future valuations," the company says.
Current stock price: 83.80 pence, down 3.0% on Monday
12-month change: down 19%
By Tom Budszus; [email protected]
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