BMO Commercial Property Trust’s net asset value (NAV) fell 5% in the quarter to 31 March 2020 as the covid-19 pandemic hit the value of its portfolio.
The unaudited NAV per share was 124.3p compared to a NAV of 130.9p per share at the end of December 2019.
The NAV is based on the external valuation of the group’s property portfolio by CBRE and includes a ‘material uncertainty’ clause in-line with RICS guidance, due to the uncertainty caused by the pandemic.
The group’s diverse portfolio was valued at £1.295bn, a fall of 3.8% in the quarter.
BMO collected 74% of the £9m rent due on for the current quarter but said this was likely to drop when its St Christopher’s Place asset, in central London, is included (the £7m of rent is due to be billed on 21 April).
It also said rent collection for the next quarter (which commences in June) will be “equally challenging”.
As a result of the hit on income, the group said it would temporarily suspend its future monthly dividend payments in order to strengthen cash reserves. It paid a monthly dividend on 31 March of 0.5p per share.
The group said the covenant on a £50m loan facility with Barclays, which relates to the St Christopher’s Place assets, is expected to be challenged. It said it has been in discussions with Barclays, which it said was sympathetic given current events and are prepared to support the business through this uncertain period.
The group said it has around £20m of available cash and an undrawn revolving credit facility of £50m. As at 31 March 2020, the group’s loan to value (LTV) was 22.6%.
The group also has a long-term £260m loan with L&G, which it said it continues to comfortably meet its covenants. The Barclays loan will need to be refinanced in June 2021 and the L&G loan in December 2024.
BCPT : BMO Commercial Property Trust reports hit on NAV due to covid-19