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

[MDW1954]

Does p30 of the AR help?

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

No. Emphatically NOT. The quarterly release talks of "retail warehouses". Of which the AR mentions zero. Now, I assume that what the AR describes as "out of town retail" is that, but why the change in nomenclature? And when it comes to the geographic distribution, which is what I was interested in, why do I have to construct the quarterly release's table manually?

Tin-eared and useless.

That said, thank you. I know that you're trying to be helpful. Which is more than BREI is.

MDW1954

[richfool]

I note BREI has changed its name and ticker, as follows:

BMO Real Estate Investments Limited (now called CT Property Trust Limited)
Date: 30 June 2022
LEI: 231801XRCB89W6XTR23

Change of Name

BMO Real Estate Investments Limited (the "Company") announces that it has changed its name to CT Property Trust Limited with immediate effect.

It is expected that the Company’s shares will trade under the new name on the London Stock Exchange with effect from 8.00 a.m. on 1 July 2022.

The Company’s trading instrument display mnemonic ("BREI") will change to “CTPT” and the ISIN and SEDOL numbers will remain unchanged.

The Company’s website address will be amended to reflect the change of name and will be available at http://www.ctpropertytrust.co.uk from 4 July 2022.

https://www.investegate.co.uk/bmo-real- ... 4329P0828/

[richfool]

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%.

CTPT, formerly BREI, hasn't been doing too well lately, - certainly over the last quarter anyway.

It's NAV has been holding steady, but the SP seems to be on a long downhill slide. Is there something I'm missing, (apart from the name change)?

SP currently: 78.40p to buy. Discount currently: c 38.3%. Dividend yield: 4.56% (Figs from HL website). Performance -16.45% over the last 3 months.

https://www.hl.co.uk/shares/shares-sear ... ted-ord-1p

[Gerry557]

Many of the REITs have taken a knock recently. I suspect rising interest rates and resession concerns are probably a big part along with the general sell in May side of things.

Still it allows the brave or foolish to add cheaper than they were. Some seem to be heading to covid lows when things looked very bleak and the economy was almost closed.

Some offering 10% yields and others on very large discounts. Of course these could change adversely if expectations are founded or get a bargain if unfounded and things don't turn out as bad.

[SKYSHIP]

Rising interest rates used to be a problem for propcos; this time around however all of them have locked in medium to long-term date at ultra-low interest rates - SREI for instance have 13yr debt at a mere 2.3%!

Outright recession would of course be a concern to rental values and voids, but IMO current valuations after the recent falls already totally discount such fears.

CTPT are again anomalously cheap for a rather bizarre reason. The 20% fall since peaking at 96p in May seems to have just one reason. A fellow propco - VIP - bought a 6% stake at c91p, buying aggressively in the market. Then, in July they did a sudden, inexplicable volte face, turning seller. Selling into a falling market of their own making; and selling down to 77p where the NAV discount is 40%.

This sell-off is an opportunity for buyers for two reasons. Firstly, CBRE stats suggest the imminent RNS for the Q2 NAV figure will likely provide CTPT with another 3% NAV uplift to c132p, taking the discount to 39.4% on Friday's slightly higher 80p sp. Secondly and more importantly, last week saw the arrival of a new Investment Manager, moving across from BCPT. He will therefore be more attuned to the possibility of buybacks, which in CTPT's case might well be fully funded by the likely imminent sale of their prime asset Mayfair property on the market for "Offers in excess of £30.75m".

In the first instance expect a near-term recovery into the mid 80s; though more patience may be required if VIP continue to do the indefensible.

[brightncheerful]

Rising interest rates used to be a problem for propcos; this time around however all of them have locked in medium to long-term date at ultra-low interest rates - SREI for instance have 13yr debt at a mere 2.3%!

it's not the effect of interest rates on the propco's borrowing that is of particular concern (unless it is) but the effect of increasing interest rates on the investment market generally (generally meaning for the type and category of property) and consequently valuation opinion of asset values. Portfolio leasing details apart, it s fluctuation between yield compression and yield expansion - ie, investment market sentiment - that is reflected in the sp.

[SKYSHIP]

69.2% - well, perhaps VIP were right after all - just saw the Market changing and hit the exit button!

Anyway, an excellent Investor Meet live presentation by the new Manager this week.

Firstly, post the excellent Mayfair sale the sector allocations are circa:

# Industrial - 60%
# R/Whs - 20%
# Office - 15%
# Retail - 5%

Voids at 2.6% & Rent Collection in last Qtr @ 99.8%

For me the big take-out was the consistent theme of increasing income. The portfolio has a reversionary level in the mid-teens; and the strategy now is to recycle assets from the excessive level of 85% in London/South-east.

All their Industrial is in the SE where yields are now down to 3%, even lower. Switch some to the NW and nearly double the yield, whilst more equably spreading the asset allocation across the regions.

Clearly CTPT is out to restore the pre-Covid dividend level of 5p versus the current 4p; hence the question at the end of the presentation asking whether shareholders would accept an uncovered dividend. IMO this would be to cover a period of transition whilst the portfolio income increases.

So CTPT can be considered to be on a prospective 5p dividend – perhaps in one leap next year, perhaps in two. At 79.2p the prospective yield would be 6.31% - more in line with peers. The discount is 40.4% on Jun'22 valuations.

[richfool]

69.2% - well, perhaps VIP were right after all - just saw the Market changing and hit the exit button!

Anyway, an excellent Investor Meet live presentation by the new Manager this week.

Firstly, post the excellent Mayfair sale the sector allocations are circa:

# Industrial - 60%
# R/Whs - 20%
# Office - 15%
# Retail - 5%

Voids at 2.6% & Rent Collection in last Qtr @ 99.8%

For me the big take-out was the consistent theme of increasing income. The portfolio has a reversionary level in the mid-teens; and the strategy now is to recycle assets from the excessive level of 85% in London/South-east.

All their Industrial is in the SE where yields are now down to 3%, even lower. Switch some to the NW and nearly double the yield, whilst more equably spreading the asset allocation across the regions.

Clearly CTPT is out to restore the pre-Covid dividend level of 5p versus the current 4p; hence the question at the end of the presentation asking whether shareholders would accept an uncovered dividend. IMO this would be to cover a period of transition whilst the portfolio income increases.

So CTPT can be considered to be on a prospective 5p dividend – perhaps in one leap next year, perhaps in two. At 79.2p the prospective yield would be 6.31% - more in line with peers. The discount is 40.4% on Jun'22 valuations.

Well I hope you are right. CTPT and API were the two REIT's I encouraged my wife to buy in her ISA! Both of which took big hits yesterday.

[SKYSHIP]

CTPT is one of the few REITs not to enjoy a good bounce in November, up a mere 3% from their recent 70p low. This in spite of the fact that at 72.6p the discount is still 40.5% to the Sept'22 NAV of 122.0p; and the yield on a prospective 4.5p (4.0p historic) would be 6.2%.

The pre-Covid dividend was 5.0p and they are clearly intent on restoring that rate; but I'm assuming it may take a couple of years; so I'm going for 4.5p in the current year.

The highly respected TR Property Trust is another believer in CTPT. At the end of September they declared a 5% interest, bought in a single transaction at c80p.

I highly recommend registering with the free site InvestorMeet and watching the 23rd September 1hr presentation and Q&A. Link herewith:

https://www.investormeetcompany.com

[airbus330]

So, another takeover bid of a heavily discounted REIT. 25% bounce in SP this morning.
https://www.voxmarkets.co.uk/rns/announ ... 2dc7b3e1f/