BMO Commercial Property Trust (LSE:BCPT)

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Trading AccountISAJISASIPP

Trust Info

  • Market Cap£595.528m
  • OCF2.34%
  • AIC sectorProperty - UK Commercial
  • Manager GroupBMO
  • Currency
  • ISINGG00B4ZPCJ00

Investment Strategy

The investment objective is to provide the Ordinary Shareholders with an attractive level of income together with the potential for capital and income growth from investing in a diversified UK commercial property portfolio.

ii Super 60 selected

This Investment trust is a member of our ii Super 60 rated list

This trust, rebranded from F&C to BMO in 2019 following a takeover in 2014, is one of the largest in the direct property investment trust sector. It has one of the most experienced management teams led by Richard Kirby, who has run the trust since its launch in 2005.

It is attractive for income investors, offering a monthly dividend payment. The monthly payment, however, was suspended on 16 April in response to uncertainty of the impact Covid-19 would have on future rental receipts.

In a trading update (on 4 August) the trust announced that monthly dividends will be reintroduced, but at 50% lower than the previous rate. From August onwards it will pay 0.25 pence per share. The board added that the level of monthly dividend will remain at this rate until further notice, but that it will be kept under review in light of the significant economic risks and continuing uncertainty regarding the path of Covid-19. Read more

The quality and diversity of the portfolio are plus points, as are various limits that help to maintain diversification and reduce risk. For example, no single property can account for more than 15% of gross assets at the time of acquisition, and the largest five properties must be no more than 40% of gross assets. There are also limits on the proportion of short-leasehold properties (with less than 60 years remaining) and the proportion of the portfolio in different sectors. The trust owns properties located throughout the country but typically has over half its portfolio in London and the South East.

August 2020

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