Is the commercial property sector finished?

StellaN

I have a small holding in Tritax Big Box but also hold the Target Healthcare REIT. Although the Private Equity IT Sector is currently looking reasonable value.

Audaxer

takesyourchances wrote: »

I hold BMO as well, my holding is down -19% odd at the moment, I am holding on, it is paying a dividend and I am not planning to crystallise a loss. I hold other property IT's as well, standard life property income is holding up, I have Titax Big Box as well, so plan holding BMO and re-investing my overall dividends.

I remember looking at BMO Commercial Property Trust a few years ago when it was known as F&C Commercial Property Trust. I didn't buy it at the time, but in view of the share price fall and increased yield, I wonder if now would be a good time to invest in it for income.

ColdIron

One point to be aware of is that its dividend has remained the same for about 10 years, 0.5 pence per share (monthly) which may be a factor in your decision

https://uk.advfn.com/stock-market/london/bmo-commercial-property-BCPT/dividends

takesyourchances

Audaxer wrote: »

I remember looking at BMO Commercial Property Trust a few years ago when it was known as F&C Commercial Property Trust. I didn't buy it at the time, but in view of the share price fall and increased yield, I wonder if now would be a good time to invest in it for income.

I am not phased by the drop in my holding of BMO, I have 4 REIT's in total which included Primary Healthcare, so I would top up BMO in line with the other REIT's I have and collect the dividends, as ColdIron has pointed out they have been solid for years and they roll in monthly as well which is nice.



Like any investment, I view it long term and that will include up's a and downs and the UK is at a testing phase too. It could be worth a consideration for a long term hold and collect the income it produces monthly from it's dividend.

NedS

I hold RDI (Redefine) REIT and it's been a rough couple years. The retail sector looks particularly bleak and I'm guessing most commercial property funds have been looking to reduce their exposure. Other sectors seem to be holding up OK but poor retail performance and brexit have hammered valuations.

I'm in for the long term. I'm hoping we've bottomed out and things will improve from the summer lows (wish I'd bought more now to top up my holding). Still, a 7.5% dividend income helps pass the time whilst waiting for a recovery.

HawkE

The dividends paid out in respect of BMO Commercial Property Trust have fallen by 20% for the last three months. The broker I use said it is because they are now paid as PIDs and paid after tax.

I thought that all dividends were paid gross. Does anyone else know whether the tax deduction can be claimed back?

Sorcerer2018

Be ware that the tax on your PID should be reclaimed back by your provider if it sits inside your SIPP or ISA. However if it sits outside of these , you might have additional tax to pay on top if you are a 40% tax holder, or you sometimes claim the money back depending on your circumstances.

Sorcerer2018

I would also think not all retail is equal, so for example BMo Commercial Property has dropped 20%, if the amount of retail is 20% of NAV you are assuming, that all retail sitting into the trust will be wiped out, and the property worthless. But property can be converted to do other things, or sold on. So I can't see a 20% Wipeout of the NAV, and not all retails companies are going out of business. Off course I am ignoring the general up and down trend of property prices in this scenario.