BMO Commercial Property Trust
Company Notes
Prospective yield of 4.1% from repositioned portfolio
Since its launch in 2005, BMO Commercial Property Trust* has been managed by Richard Kirby of BMO Real Estate Partners. Richard is currently supported by deputy manager Matthew Howard, although the latter will be stepping down in July following his appointment to a new role within BMO. A search for a replacement is currently underway. In the near future, the fund’s name will be changed to Balanced Commercial Property Trust following the sale of Bank of Montreal’s EMEA asset management business to Columbia Threadneedle Investments. The fund’s objective is to provide 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.
On 19 April the fund published its annual results for the year to 31 December 2021. The NAV per share increased by 15.0% from 117.5p to 135.1p, while the NAV total return was +18.9%. The capital return of the property portfolio was +9.9%, with its valuation standing at £1.2bn at the year-end. The fund pays monthly dividends, which are currently being paid at a rate of 0.375p per share per month. However, with effect from May this will increase to 0.4p per share. This represents an annualised dividend of 4.8p per share, giving a prospective yield of 4.1%, and compares with the pre-pandemic monthly dividend rate of 0.5p per share.
*Denotes a corporate broking client of Winterflood Securities
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