LSE:UKCM

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UK Commercial Property REIT

Executive Summary

UK Commercial Property REIT (UKCPT) was launched in September 2006, registered as a Guernsey investment company and has a full listing on the London Stock Exchange (FTSE 250).


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has UK Commercial Property REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UKCM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.2%

UKCM

1.6%

GB REITs

1.3%

GB Market


1 Year Return

-40.3%

UKCM

-19.5%

GB REITs

-14.4%

GB Market

Return vs Industry: UKCM underperformed the UK REITs industry which returned -21.2% over the past year.

Return vs Market: UKCM underperformed the UK Market which returned -15.3% over the past year.


Shareholder returns

UKCMIndustryMarket
7 Day0.2%1.6%1.3%
30 Day-9.1%-2.7%5.9%
90 Day-35.3%-26.6%-14.4%
1 Year-37.9%-40.3%-16.6%-19.5%-10.3%-14.4%
3 Year-29.0%-37.3%-15.9%-21.9%-7.2%-18.5%
5 Year-22.2%-37.2%-10.3%-26.8%9.5%-15.0%

Price Volatility Vs. Market

How volatile is UK Commercial Property REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is UK Commercial Property REIT undervalued compared to its fair value and its price relative to the market?

23.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: UKCM (£0.55) is trading above our estimate of fair value (£0.34)

Significantly Below Fair Value: UKCM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: UKCM is poor value based on its PE Ratio (23.2x) compared to the REITs industry average (13x).

PE vs Market: UKCM is poor value based on its PE Ratio (23.2x) compared to the UK market (14.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: UKCM is good value based on its PB Ratio (0.6x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

How is UK Commercial Property REIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.2%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as UK Commercial Property REIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has UK Commercial Property REIT performed over the past 5 years?

-19.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UKCM has a large one-off loss of £10.3M impacting its June 30 2019 financial results.

Growing Profit Margin: UKCM's current net profit margins (40.9%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: UKCM's earnings have declined by -19.2% per year over the past 5 years.

Accelerating Growth: UKCM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UKCM had negative earnings growth (-74.1%) over the past year, making it difficult to compare to the REITs industry average (-22.4%).


Return on Equity

High ROE: UKCM's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is UK Commercial Property REIT's financial position?


Financial Position Analysis

Short Term Liabilities: UKCM's short term assets (£89.7M) exceed its short term liabilities (£25.2M).

Long Term Liabilities: UKCM's short term assets (£89.7M) do not cover its long term liabilities (£257.5M).


Debt to Equity History and Analysis

Debt Level: UKCM's debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: UKCM's debt to equity ratio has reduced from 24.2% to 21.3% over the past 5 years.

Debt Coverage: UKCM's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: UKCM's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet


Next Steps

Dividend

What is UK Commercial Property REIT's current dividend yield, its reliability and sustainability?

3.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UKCM's dividend (3.36%) is higher than the bottom 25% of dividend payers in the UK market (2.03%).

High Dividend: UKCM's dividend (3.36%) is low compared to the top 25% of dividend payers in the UK market (5.85%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (125.2%), UKCM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.0yrs

Average board tenure


CEO

UK Commercial Property REIT has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Robert Fowlds
Non-Executive Director2.08yrsUK£30.75kno data
Michael Ayre
Independent Non-Executive Director4.25yrsUK£43.00kno data
Ken McCullagh
Chairman of the Board0.42yrUK£48.75kno data
Sandra Platts
Independent Non-Executive Director6.42yrsUK£43.00kno data
Margaret Littlejohns
Non-Executive Director1.92yrsUK£42.50kno data
Chris Fry
Director0.33yrno datano data

2.0yrs

Average Tenure

Experienced Board: UKCM's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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.


Ownership Breakdown

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


Top Shareholders

Company Information

UK Commercial Property REIT Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: UK Commercial Property REIT Limited
  • Ticker: UKCM
  • Exchange: LSE
  • Founded: 2006
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£710.779m
  • Shares outstanding: 1.30b
  • Website: https://www.ukcpreit.co.uk

Location

  • UK Commercial Property REIT Limited
  • Investment House 1 George Street
  • Edinburgh
  • Eh2 2-ll
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UKCMLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2006
UKCMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2006

Biography

UK Commercial Property REIT (UKCPT) was launched in September 2006, registered as a Guernsey investment company and has a full listing on the London Stock Exchange (FTSE 250). The initial offering raised £530m and the proceeds were used to acquire a portfolio of properties from closed life funds held by Phoenix Group Holdings. This provided a means for the life funds to collectivise their property exposure, while at the same time reducing exposure by way of UKCPT attracting additional new shareholders. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 05:50
End of Day Share Price2020/05/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.