BMO Real Estate Investments has reported a 3.1% fall in its net asset value (NAV) for the quarter to the end of June.
The group said the unaudited NAV per share at 30 June 2020 was 96.6 pence (31 March 2020: 99.7 pence).
The NAV fall was due to a 2.5% drop in the value of the property portfolio during the quarter to £312.3m.
Rent collection
The company has said it has collected 91% of rents for Q2 (billed between 26 March and 1 June). Of the outstanding 9%, around 3% have been agreed as outright rent-free concessions and a further 3% is recoverable by way of deferral or extension to lease term. The remainder is due, but unpaid at this time.
A breakdown of the rent collection by sector shows that 98% of rent from the industrial and logistics sector (which accounts for 43% of BMO Real Estate Investments’ portfolio) was collected and 99% of office rents were collected. Encouragingly, 91% of rents billed to its retail park tenants were paid. It was high street retail, which accounts for 14% of total rents, that brought the overall collection rate down, with 53% received in the quarter.
The group is on track for a similar rent collection figure for the current quarter (billed between 24 June and 1 September), with 66% of the £3m so far billed collected (65% in same period last quarter).
This percentage will increase as tenants that have agreed monthly payment arrangements, but have been billed quarterly, pay further instalments. The total quarterly rent amounts to £4.1m with further contractual billing dates during the course of July and August.
Financials
The group has around £13.7m of available cash and an undrawn revolving credit facility of £20m. Its £90m long-term debt with Canada Life and the undrawn loan facility with Barclays do not need to be refinanced until November 2026 and March 2025 respectively. As at 30 June 2020, the group’s loan to value (LTV) was 25.6% and it said there was significant headroom under debt covenants.
Dividend
The company paid a 50% reduced quarterly dividend payment of 0.625 pence per ordinary share on 30 June 2020 and the company has said it would continue to pay a reduced quarterly dividend in the future “to protect cash reserves and the long-term value of the group”.
BREI : BMO Real Estate Investments reports 3.1% drop in NAV