BMO Commercial Property Trust (LSE:BCPT) - Share price, News & Analysis

BCPT fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	1/6
Financial Health	3/6
Dividends	3/6

BCPT Stock Overview

The trust is a vehicle for investors who wish to gain exposure to prime UK commercial property.

Rewards

Trading at 6% below our estimate of its fair value

Became profitable this year

Risk Analysis

Earnings have declined by 21.3% per year over past 5 years

Unstable dividend track record

Large one-off items impacting financial results

BMO Commercial Property Trust Competitors

Land Securities Group

LSE:LAND

UK£5.6b

British Land

LSE:BLND

UK£4.9b

UK Commercial Property REIT

LSE:UKCM

UK£1.1b

Picton Property Income

LSE:PCTN

UK£509.0m

Price History & Performance

Summary of all time highs, changes and price drops for BMO Commercial Property Trust
Historical stock prices
Current Share Price	UK£1.20
52 Week High	UK£1.24
52 Week Low	UK£0.80
Beta	0.86
1 Month Change	4.70%
3 Month Change	14.91%
1 Year Change	50.63%
3 Year Change	0.67%
5 Year Change	-18.62%
Change since IPO	12.34%

Shareholder Returns

	BCPT	GB REITs	GB Market
7D	0.5%	0.8%	-0.4%
1Y	50.6%	2.7%	-3.0%

Return vs Industry: BCPT exceeded the UK REITs industry which returned 2.3% over the past year.

Return vs Market: BCPT exceeded the UK Market which returned -2.7% over the past year.

Price Volatility

Is BCPT's price volatile compared to industry and market?
BCPT volatility
BCPT Average Weekly Movement	3.1%
REITs Industry Average Movement	3.4%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: BCPT is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BCPT's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	n/a	Richard Wilson	https://www.bmogam.com/commercial-property-trust/

The trust is a vehicle for investors who wish to gain exposure to prime UK commercial property. It is a constituent of the FTSE 250 Index and aims 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.

BMO Commercial Property Trust Fundamentals Summary

How do BMO Commercial Property Trust's earnings and revenue compare to its market cap?
BCPT fundamental statistics
Market Cap	UK£881.96m
Earnings (TTM)	UK£156.02m
Revenue (TTM)	UK£55.84m

5.6x

P/E Ratio

15.7x

P/S Ratio

Is BCPT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BCPT income statement (TTM)
Revenue	UK£55.84m
Cost of Revenue	UK£7.20m
Gross Profit	UK£48.65m
Other Expenses	-UK£107.37m
Earnings	UK£156.02m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.21
Gross Margin	87.12%
Net Profit Margin	279.40%
Debt/Equity Ratio	30.3%

How did BCPT perform over the long term?

See historical performance and comparison

Dividends

4.0%

Current Dividend Yield

95%

Payout Ratio

Valuation

Is BMO Commercial Property Trust undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

6.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BCPT (£1.2) is trading below our estimate of fair value (£1.28)

Significantly Below Fair Value: BCPT is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: BCPT is good value based on its Price-To-Earnings Ratio (5.6x) compared to the UK REITs industry average (9.5x).

PE vs Market: BCPT is good value based on its Price-To-Earnings Ratio (5.6x) compared to the UK market (15.4x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BCPT's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: BCPT's Price-To-Book Ratio (0.9x) is in line with the GB REITs industry average.

Future Growth

How is BMO Commercial Property Trust forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-6.5%

Forecasted Real Estate industry annual growth in earnings

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if BCPT's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if BCPT's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if BCPT's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if BCPT's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if BCPT's Return on Equity is forecast to be high in 3 years time

Past Performance

How has BMO Commercial Property Trust performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-21.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BCPT has a large one-off gain of £121.4M impacting its December 31 2021 financial results.

Growing Profit Margin: BCPT became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: BCPT's earnings have declined by 21.3% per year over the past 5 years.

Accelerating Growth: BCPT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BCPT has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (129.6%).

Return on Equity

High ROE: BCPT's Return on Equity (15.3%) is considered low.

Financial Health

How is BMO Commercial Property Trust's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BCPT's short term assets (£146.9M) exceed its short term liabilities (£18.6M).

Long Term Liabilities: BCPT's short term assets (£146.9M) do not cover its long term liabilities (£311.1M).

Debt to Equity History and Analysis

Debt Level: BCPT's net debt to equity ratio (16.8%) is considered satisfactory.

Reducing Debt: BCPT's debt to equity ratio has increased from 28.4% to 30.3% over the past 5 years.

Debt Coverage: BCPT's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: BCPT's interest payments on its debt are well covered by EBIT (4.3x coverage).

Balance Sheet

Dividend

What is BMO Commercial Property Trust current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.99%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BCPT's dividend (3.99%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: BCPT's dividend (3.99%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

Stability and Growth of Payments

Stable Dividend: BCPT's dividend payments have been volatile in the past 10 years.

Growing Dividend: BCPT's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (95.2%), BCPT's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (99.4%), BCPT's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average board tenure

CEO

Richard Wilson (55 yo)

no data

Tenure

Mr. Richard Charles Wilson, BA was a Director at BMO Asset Management Corp. Mr. Wilson serves as Non-Executive Director, Albion Venture Capital Trust PLC at Albion Capital Group LLP since joining the firm...

Board Members

Experienced Board: BCPT's board of directors are considered experienced (3.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31