BMO Commercial Property Trust

Richard Kirby

Director, Property Funds

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Matt Howard

Deputy Fund Manager

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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. Dividends are paid monthly.

Objectives

The Company’s investment objective is to provide ordinary 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.
 

Investment Policy

The Company’s policy is to hold a diversified portfolio of freehold and predominantly long leasehold (over 60 years remaining at the time of acquisition) UK commercial properties. It invests principally in three commercial property sectors: office, retail and industrial.
 
The Company invests in properties which the Board, on the advice of the managers, believes will generate a combination of long-term growth in capital and income for shareholders. Investment decisions are based on an analysis of, amongst other things, prospects for future capital and income growth, sector and geographic prospects, tenant covenant strength, lease length, and initial and equivalent yields.
 
Investment risks are spread by investing across different geographical areas and sectors and by letting properties to low risk tenants. The Company has not set any maximum geographic exposures, but the maximum weightings in the principal property sectors at any time (stated as a percentage of total assets) are: office: 50 per cent; retail: 65 per cent; and industrial: 40 per cent.

No single property may exceed 15 per cent of total assets and the five largest properties (excluding indirect property funds) may not exceed 40 per cent of total assets, (in each case at the time of acquisition). Short leasehold properties (with less than 60 years remaining) may not exceed 10 per cent of total assets at the time of acquisition.
 
The Company is permitted to invest up to 15 per cent, at time of acquisition, of its total assets in indirect property funds, (including other listed property companies) which invest principally in UK property, but these investments may not exceed 20 per cent of total assets at any subsequent date. The Company is permitted to invest cash, held by it for working capital purposes and awaiting investment, in cash deposits, gilts and money market funds.
 
The Company uses gearing to enhance returns over the long term. Gearing, represented by borrowings as a percentage of total assets, may not exceed 50 per cent. However, the Board’s present intention is that borrowings of the group will be limited to a maximum of 35 per cent of total assets at the time of borrowing.

Investment Risks

The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. The value of property reflects the opinion of valuers and is reviewed periodically. These assets can also be illiquid and significant or persistent redemptions may require the manager to sell properties at a lower market value adversely affecting the value of your investment. A fund investing in a specific country carries a greater risk than a fund diversified across a range of countries. Gearing is used for investment purposes to obtain, increase or reduce exposure to an asset, index or investment. The use of gearing can enhance returns to investors in a rising market, but if the market falls the losses may be greater.

Fund Facts and Key Dates

Fund Facts

Investment manager

BMO Investment Business Limited

Launch date

2005

Total assets

£1,400.3 million (as at 30.06.19)

Currency

Sterling

ISIN

GG00B4ZPCJ00

SEDOL

B4ZPCJ0

Ticker symbol

BCPT

Key Dates

Annual general meeting

May

Year end

31 December

Dividend payment date(s)

Monthly

The Board

Martin Moore MRICS
Chairman
Martin Moore was, until June 2013, Chairman, of M&G Real Estate Ltd, the property asset management arm of Prudential plc. He has also been a board adviser to The Crown Estate and a board member of the British Property Federation.
Trudi Clark ACA
Independent non-executive director and Chairman of the Audit Committee
Trudi Clark is a former Chief Executive Officer of Schroders (C.I.) Limited and has over 25 years’ experience in the financial services industry. She is a non-executive director of a number of Guernsey based funds and companies.
Paul Marcuse FRICS
Senior Independent Director
Paul Marcuse has approximately 35 years’ experience in the real estate and finance sectors. He was Head of Global Real Estate at UBS Global Asset Management between 2007 and 2012. Prior to this, he was Chief Executive of AXA Real Estate Investment Managers.
John Wythe
Independent non-executive Director
John Wythe has approximately 40 years' experience in the real estate industry and was until Dec 2010, a Director and Head of Fund Management of Prudential Property Investment Managers Limited, now M&G Real Estate. He has been a Board member of the Church Commissioners and is currently Chairman of the Trustees of The Portman Estate and has a number of other Non-Executive appointment, primarily involving real estate.
Linda Wilding
Independent non-executive director
Linda Wilding qualified as a chartered accountant with Ernst & Young, before working in the private equity division of Mercury Asset Management from 1989 to 2002, rising to the position of Managing Director. She has served as a non-executive director (including as chairman) on the boards of a number of companies. She is currently a non-executive director of UDG Healthcare plc, Wesleyan Assurance Society and Electra Private Equity plc. She was a non-executive director and latterly chair on Corin plc from 2006 to 2012 and was senior independent director of Touchstone Innovations plc until 2017.

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