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CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

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CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#421974

Postby SKYSHIP » June 24th, 2021, 4:58 pm

Moderator Message:
On 1st July 2022, BREI changed its name to CT Property Trust, ticker CTPT -- MDW1954


BMO Real Estate Invs. (BREI) are looking anomalously cheap versus peers. After a recent run up to 80p, they are now languishing back at 71.2p, at which level they are trading at a 28.2% NAV discount and a yield of 5.27% on a projected 3.75p dividend.

What particularly catches my eye is that a NED has recently invested £20k at 74.4p. Another bull point is the chart which shows the SP bouncing on the 70p support level and also off the 150day SMA.

The property portfolio is also attractive:

# Industrial – 46%; Office – 30%; Ret. W’Hse – 16%; Retail – 8%

The LTV is 25.3%, the debt cost is 3.1% . WAULT is 5.6yrs.

I would bracket BREI with SREI & SLI, both recovering well and trading on discounts below 20%.

IMO they look good for a 10%-15% short-term trade – certainly worth a little investigation as these anomalies have frequently provided profitable trades.
Last edited by csearle on July 5th, 2022, 7:58 pm, edited 1 time in total.
Reason: Subject change

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#422288

Postby stevensfo » June 25th, 2021, 1:54 pm

SKYSHIP wrote:BMO Real Estate Invs. (BREI) are looking anomalously cheap versus peers. After a recent run up to 80p, they are now languishing back at 71.2p, at which level they are trading at a 28.2% NAV discount and a yield of 5.27% on a projected 3.75p dividend.

What particularly catches my eye is that a NED has recently invested £20k at 74.4p. Another bull point is the chart which shows the SP bouncing on the 70p support level and also off the 150day SMA.

The property portfolio is also attractive:

# Industrial – 46%; Office – 30%; Ret. W’Hse – 16%; Retail – 8%

The LTV is 25.3%, the debt cost is 3.1% . WAULT is 5.6yrs.

I would bracket BREI with SREI & SLI, both recovering well and trading on discounts below 20%.

IMO they look good for a 10%-15% short-term trade – certainly worth a little investigation as these anomalies have frequently provided profitable trades.


Thanks for that. But I suddenly noticed the name and did a double-take. I hold BMO Commercial Property Trust (BCPT):
https://www.ii.co.uk/investment-trusts/ ... t/LSE:BCPT

It appears remarkably similar to BREI:
https://www.ii.co.uk/investment-trusts/ ... d/LSE:BREI

Both on very similar discounts as well. Though BREI has a slightly higher dividend.


Steve

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#422343

Postby SKYSHIP » June 25th, 2021, 3:44 pm

stevensfo - same stable, but very different animals. BREI a far better bet IMO.

BCPT far too London-centric and their property portfolio does not compare well with BREI:

# Ind. - 18%; Off. - 42%; Ret. - 20%; Ret. W'Hse - 10%; Spec/Alt - 10%

BCPT only holding current sp level due to very heavy buybacks.

IMO current pricing offers a very good opportunity to switch horses.

I am a holder of BREI.

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#425868

Postby SKYSHIP » July 8th, 2021, 1:39 pm

Took a little time, but now going well - 75.6p-77.0p...

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#433499

Postby SKYSHIP » August 9th, 2021, 4:33 pm

These are see-sawing around under 76p. A good opportunity to buy some cheap stock this afternoon - currently on offer @ 73.4p.

At that price the discount is at a sector high of 28.2% and the prospective yield on an assumed 3.75p divi = 5.12%.

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#434604

Postby airbus330 » August 13th, 2021, 5:52 pm

https://citywire.co.uk/investment-trust ... ider+Daily

Moderator Message:
Please try to avoid posting bare links. It is always preferable to provide some context, or a pithy summary. --MDW1954

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#441679

Postby flyer61 » September 12th, 2021, 5:18 pm

Dividend increase announced. Now 1p per share XD 16/09 payable 30/09.

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#441825

Postby richfool » September 13th, 2021, 10:48 am

SKYSHIP wrote:These are see-sawing around under 76p. A good opportunity to buy some cheap stock this afternoon - currently on offer @ 73.4p.
At that price the discount is at a sector high of 28.2% and the prospective yield on an assumed 3.75p divi = 5.12%.

# Industrial – 46%; Office – 30%; Ret. W’Hse – 16%; Retail – 8%

Skyship, I've been having a look at BREI, but note that Retail Warehouse @ 16% + Retail @ 8% = Total Retail = 24% ....which I find less attractive. Dividend increase noted.

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#450524

Postby SKYSHIP » October 16th, 2021, 8:54 am

A 50k UT at 80p, as BREI hits my target - its been a profitable and very predictable trade.

Richfool - hadn't seen your last post. Just to say that there is a world of difference between the two categories of Retail and Retail Warehouse. The latter has been a star performer this year as traffic footfall showed that shoppers like the space, security and parking. Also most of the tenants are of the"must visit" category. Retail still suspect....though valuations have plateaued.

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#450572

Postby richfool » October 16th, 2021, 12:53 pm

SKYSHIP wrote:A 50k UT at 80p, as BREI hits my target - its been a profitable and very predictable trade.

Richfool - hadn't seen your last post. Just to say that there is a world of difference between the two categories of Retail and Retail Warehouse. The latter has been a star performer this year as traffic footfall showed that shoppers like the space, security and parking. Also most of the tenants are of the"must visit" category. Retail still suspect....though valuations have plateaued.

Yes indeed, I appreciate retail warehouse is preferable to (high Street) retail.

I am quite well weighted with Prop Coys currently. I hold: SLI, RGL, WHR, SUPR, EPIC and PHP.

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#475846

Postby RockRabbit » January 24th, 2022, 8:07 pm

BREI issued a trading update and revised NAV for 31 Dec. today.

Very good figures for vacancies and rental collection, with NAV growing from 110p to 121 p per share in just 3 months - remember this is a generalist REIT with just over 50% of its properties in industrial estates/logistics.

Shares bounced a bit today but probably subdued due to the general market turbulence.

At 92p these are now at a 24% discount to NAV so I would expect the share price to climb in the next few days (world markets permitting).

https://www.londonstockexchange.com/new ... e/15298425

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#476271

Postby RockRabbit » January 26th, 2022, 10:10 am

RockRabbit wrote:BREI issued a trading update and revised NAV for 31 Dec. today.

Very good figures for vacancies and rental collection, with NAV growing from 110p to 121 p per share in just 3 months - remember this is a generalist REIT with just over 50% of its properties in industrial estates/logistics.

Shares bounced a bit today but probably subdued due to the general market turbulence.

At 92p these are now at a 24% discount to NAV so I would expect the share price to climb in the next few days (world markets permitting).

https://www.londonstockexchange.com/new ... e/15298425

OK, so what is the catch here? No real movement in the couple of days since the RNS.

24% discount to NAV but with over 70% of assets in industrial, logistics or retail warehouse. Meanwhile logistics pure plays are on premiums (some of which are huge). You're effectively getting the office portfolio thrown in for free with BREI?!

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#476292

Postby richfool » January 26th, 2022, 12:03 pm

RockRabbit wrote:
RockRabbit wrote:BREI issued a trading update and revised NAV for 31 Dec. today.

Very good figures for vacancies and rental collection, with NAV growing from 110p to 121 p per share in just 3 months - remember this is a generalist REIT with just over 50% of its properties in industrial estates/logistics.

Shares bounced a bit today but probably subdued due to the general market turbulence.

At 92p these are now at a 24% discount to NAV so I would expect the share price to climb in the next few days (world markets permitting).

https://www.londonstockexchange.com/new ... e/15298425

OK, so what is the catch here? No real movement in the couple of days since the RNS.

24% discount to NAV but with over 70% of assets in industrial, logistics or retail warehouse. Meanwhile logistics pure plays are on premiums (some of which are huge). You're effectively getting the office portfolio thrown in for free with BREI?!

Might the catch be that the dividend yield is only 3.82%?

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#476312

Postby RockRabbit » January 26th, 2022, 1:42 pm

richfool wrote:Might the catch be that the dividend yield is only 3.82%?

I don't think so. The reason for the lowish yield is mainly that BREI reduced their dividend in 2020 due to Covid. As that now appears to be coming to and end (and they have stated that they have nearly full occupancy and rental payments), I would expect the dividend to return to around 5p per annum as it was in 2019 (although I don't think they have announced this). That would put the shares on approx. 5.3% yield.

Disclosure: I hold BREI (and many other REITs)

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#476341

Postby SKYSHIP » January 26th, 2022, 3:40 pm

Re BREI yield. My advice is never to rely upon ADVFN stats, LSE stats, HL stats or anyone else's stats for that matter. The only way to calculate an accurate yield is to go to real current dividend statements.

Do that with BREI and you will see that the annualised current yield is for 4 x 1p, ie 4p/annum - not ADVFN's historic 2020/1 dividend of 3.55p

So at 4p and an sp of 92.7p, the yield = 4.3%. But with that costing just £9.6m and the Interim earnings exceeding that figure, I concur with RockRabbit, we are quite likely to see a reasonable increase with the next dividend RNS (1st March last year).

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#482362

Postby richfool » February 23rd, 2022, 1:10 pm

SKYSHIP wrote:Re BREI yield. My advice is never to rely upon ADVFN stats, LSE stats, HL stats or anyone else's stats for that matter. The only way to calculate an accurate yield is to go to real current dividend statements.

Do that with BREI and you will see that the annualised current yield is for 4 x 1p, ie 4p/annum - not ADVFN's historic 2020/1 dividend of 3.55p

So at 4p and an sp of 92.7p, the yield = 4.3%. But with that costing just £9.6m and the Interim earnings exceeding that figure, I concur with RockRabbit, we are quite likely to see a reasonable increase with the next dividend RNS (1st March last year).

Skyship, Thanks for your regular updates on these REIT's.

I added BREI, at a large discount, a while back, and whilst I note the NAV is increasing, the SP seems to be treading water with tennis rackets on its feet ( :D ), well I mean dropping back, rather than increasing. (The discount now around -27%).

I noted your comments about watching out for the next dividend RNS around the 1st March with a view to a possible increase in the dividend and will keep my eyes open with optimism. If you know of any other relevant developments, please do let me/us know.

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#482377

Postby BullDog » February 23rd, 2022, 3:05 pm

richfool wrote:
SKYSHIP wrote:Re BREI yield. My advice is never to rely upon ADVFN stats, LSE stats, HL stats or anyone else's stats for that matter. The only way to calculate an accurate yield is to go to real current dividend statements.

Do that with BREI and you will see that the annualised current yield is for 4 x 1p, ie 4p/annum - not ADVFN's historic 2020/1 dividend of 3.55p

So at 4p and an sp of 92.7p, the yield = 4.3%. But with that costing just £9.6m and the Interim earnings exceeding that figure, I concur with RockRabbit, we are quite likely to see a reasonable increase with the next dividend RNS (1st March last year).

Skyship, Thanks for your regular updates on these REIT's.

I added BREI, at a large discount, a while back, and whilst I note the NAV is increasing, the SP seems to be treading water with tennis rackets on its feet ( :D ), well I mean dropping back, rather than increasing. (The discount now around -27%).

I noted your comments about watching out for the next dividend RNS around the 1st March with a view to a possible increase in the dividend and will keep my eyes open with optimism. If you know of any other relevant developments, please do let me/us know.

Not only BREI. RGL share price is struggling in the present climate despite having, in my opinion, one of the best management teams in the business. SOHO is still seriously under the cosh too after falling out of bed in sympathy with the similar Civitas REIT. Patience is a virtue here, I feel ;)

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#497125

Postby RockRabbit » April 28th, 2022, 8:04 am

BREI published 31/3/22 NAV today, plus a trading update. NAV up by 5.8% on the quarter. Shares at 96p now stand at 25% discount despite the majority of the assets being industrial or retail warehouse. Trading update is worth a read as it explains the current performance of each asset class, ie industrial, retail, retail warehouse and offices.

https://www.londonstockexchange.com/new ... e/15428823

I continue to hold.

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#497600

Postby MDW1954 » April 29th, 2022, 10:28 pm

One of the things that bugs me about BREI is its tin-eared approach to investor communications. Take the latest release.

We know exactly where £88m of offices are located, and where £23m of shops are located.

But what of the fast-growing, sexy retail warehouse sector, valued at £73m, where percentage NAV appreciation is highest?

Search me, because it doesn't say.

And what I do dig up, via Google, isn't inspiring.

You'd think that an outfit like BMO could do better.

MDW1954

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Re: CT Property Trust, CTPT (was BMO Real Estate Invs.) - the next to look anomalously cheap

#497603

Postby monabri » April 29th, 2022, 10:45 pm

MDW1954 wrote:One of the things that bugs me about BREI is its tin-eared approach to investor communications. Take the latest release.

We know exactly where £88m of offices are located, and where £23m of shops are located.

But what of the fast-growing, sexy retail warehouse sector, valued at £73m, where percentage NAV appreciation is highest?

Search me, because it doesn't say.

And what I do dig up, via Google, isn't inspiring.

You'd think that an outfit like BMO could do better.

MDW1954



Does p30 of the AR help?

https://www.fundslibrary.co.uk/FundsLib ... _documents

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