UK Commercial Property REIT (LSE:UKCM) - Share price, News & Analysis

UKCM fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	4/6
Dividends	2/6

UKCM Stock Overview

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).

Rewards

Price-To-Earnings ratio (4.8x) is below the UK market (15.4x)

Became profitable this year

Risk Analysis

Earnings have declined by 0.6% per year over past 5 years

Dividend of 3.08% is not well covered by earnings

Large one-off items impacting financial results

UK Commercial Property REIT Competitors

Land Securities Group

LSE:LAND

UK£5.6b

British Land

LSE:BLND

UK£4.9b

BMO Commercial Property Trust

LSE:BCPT

UK£882.0m

Picton Property Income

LSE:PCTN

UK£509.0m

Price History & Performance

Summary of all time highs, changes and price drops for UK Commercial Property REIT
Historical stock prices
Current Share Price	UK£0.87
52 Week High	UK£0.96
52 Week Low	UK£0.72
Beta	0.17
1 Month Change	-3.12%
3 Month Change	14.30%
1 Year Change	20.47%
3 Year Change	-5.02%
5 Year Change	-0.17%
Change since IPO	-15.64%

Shareholder Returns

	UKCM	GB REITs	GB Market
7D	0.3%	0.8%	-0.4%
1Y	20.5%	2.7%	-3.0%

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

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

Price Volatility

Is UKCM's price volatile compared to industry and market?
UKCM volatility
UKCM Average Weekly Movement	3.3%
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: UKCM is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

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

About the Company

Founded	Employees	CEO	Website
2006	n/a	n/a	https://www.ukcpreit.co.uk

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.

UK Commercial Property REIT Fundamentals Summary

How do UK Commercial Property REIT's earnings and revenue compare to its market cap?
UKCM fundamental statistics
Market Cap	UK£1.13b
Earnings (TTM)	UK£236.23m
Revenue (TTM)	UK£64.49m

4.8x

P/E Ratio

17.6x

P/S Ratio

Is UKCM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UKCM income statement (TTM)
Revenue	UK£64.49m
Cost of Revenue	UK£19.91m
Gross Profit	UK£44.58m
Other Expenses	-UK£191.65m
Earnings	UK£236.23m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.18
Gross Margin	69.13%
Net Profit Margin	366.33%
Debt/Equity Ratio	18.7%

How did UKCM perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

100%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

4.79x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: UKCM (£0.87) is trading above our estimate of fair value (£0.82)

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

Price To Earnings Ratio

PE vs Industry: UKCM is good value based on its Price-To-Earnings Ratio (4.8x) compared to the UK REITs industry average (9.5x).

PE vs Market: UKCM is good value based on its Price-To-Earnings Ratio (4.8x) compared to the UK market (15.4x).

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

Future Growth

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

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

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.

Past Performance

How has UK Commercial Property REIT 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

-0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UKCM has a large one-off gain of £207.6M impacting its December 31 2021 financial results.

Growing Profit Margin: UKCM became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: UKCM's earnings have declined by 0.6% per year over the past 5 years.

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

Earnings vs Industry: UKCM 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: UKCM's Return on Equity (17.8%) is considered low.

Financial Health

How is UK Commercial Property REIT's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: UKCM's short term assets (£92.9M) exceed its short term liabilities (£27.7M).

Long Term Liabilities: UKCM's short term assets (£92.9M) do not cover its long term liabilities (£248.3M).

Debt to Equity History and Analysis

Debt Level: UKCM's net debt to equity ratio (15.6%) is considered satisfactory.

Reducing Debt: UKCM's debt to equity ratio has reduced from 22.5% to 18.7% over the past 5 years.

Debt Coverage: UKCM's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: UKCM's interest payments on its debt are well covered by EBIT (5.7x coverage).

Balance Sheet

Dividend

What is UK Commercial Property REIT 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

3.08%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UKCM's dividend (3.08%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: UKCM's dividend (3.08%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (100%), UKCM's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (91.8%), UKCM'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?

4.3yrs

Average board tenure

CEO

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

Board Members

Experienced Board: UKCM's board of directors are considered experienced (4.3 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.

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