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REG-BMO Com Pty Tst Ltd: Net Asset Value(s)

To:                   Company Announcements

Date:                31 July 2019

Company:        BMO Commercial Property Trust Limited

LEI:                  213800A2B1H4ULF3K397

Subject:           Net Asset Value

Net Asset Value

The unaudited net asset value (‘NAV’) per share of the Group as at 30 June
2019 was 136.3 pence. This represents a decrease of -1.2 per cent from the
unaudited NAV per share as at 31 March 2019 of 137.9 pence and a NAV total
return for the quarter of -0.1 per cent.

The NAV has been calculated under International Financial Reporting Standards
(‘IFRS’). It is based on the external valuation of the Group’s direct
property portfolio prepared by CBRE Limited.

The NAV includes all income to 30 June 2019 and is calculated after deduction
of all dividends paid prior to that date. As at 30 June 2019, no adjustments
were required to the NAV in respect of dividends for which the share price had
gone ex-dividend.

Share Price

The share price was 111.80 pence per share at 30 June 2019, which represented
a discount of 18.0 per cent to the NAV per share announced above. The share
price total return for the quarter was -5.3 per cent.

Analysis of Movement in NAV

The following table provides an analysis of the movement in the unaudited NAV
per share for the period from 31 March 2019 to 30 June 2019 (including the
effect of gearing):

                                                                 £m  Pence per share  % of opening NAV per share 
 NAV as at 31 March 2019                                    1,102.6            137.9                             
 Unrealised decrease in valuation of property portfolio *    (10.4)            (1.3)                       (0.9) 
 Realised loss on sale of property                            (0.6)            (0.1)                       (0.1) 
 Movement in fair value of interest rate swap                 (0.1)              0.0                         0.0 
 Other net revenue                                             10.3              1.3                         0.9 
 Dividends paid                                              (12.0)            (1.5)                       (1.1) 
 NAV as at 30 June 2019                                     1,089.8            136.3                       (1.2) 

* The ungeared decrease in the valuation of the property portfolio over the
quarter to 30 June 2019 was -0.8%, after allowing for capital expenditure.

The net gearing at 30 June 2019 was 20.4%. #

# Net gearing: (Borrowings – cash) ÷ total assets (less current liabilities
and cash).

Market

The market delivered a 0.6 per cent all-property total return in the quarter
ended June 2019 according to the MSCI UK Monthly Property Index for standing
investments. All-property capital values fell by -0.7% over the three-month
period, with June 2019 representing the eighth consecutive month of decline.

The retail market continued to be affected by Company Voluntary Arrangements,
administrations and store rationalisation programmes. The sector delivered a
quarterly total return of -0.9 per cent, with negative returns in most parts
of the market. Central London shops were an exception delivering a modest 0.3
per cent total return.

The office market recorded a 0.9 per cent total return, led by offices outside
Central London. This is slightly below the rate seen in the previous quarter.
The industrial market continued to drive performance with a 1.7 per cent total
return. This was in line with the previous quarter’s performance but
represents a deceleration from the pace of the previous few years. The
alternatives sector out-performed the all-property average.

The quarter was notable for the continued weakness in investment activity.
Most parts of the market are now seeing below average levels of transactions.

Performance is being supported by the income return. This was unchanged in the
quarter at 1.3 percent and was 5.2 per cent on an annual basis.

Performance

The Company’s portfolio delivered a total return of 0.3 per cent over the
quarter. The capital value of the portfolio decreased by -0.8 per cent and the
income return was 1.1 per cent.

The Company’s retail properties were the worst performing sector recording a
total return of      -0.6 per cent. Within the retail sector, retail
warehouses recorded a total return of -2.4 per cent with both Newbury Retail
Park and Solihull Retail Park experiencing valuation falls of -3.5 per cent
and -4.6 per cent respectively. These falls were attributable to market
related capitalisation rates moving out, whilst the estimated rental values
are supported by recent letting progress on the parks. The Managers continue
to work on a number of initiatives to re-let the units affected by tenant
defaults and these are progressing but still dependent upon securing revised
planning consents.

The Company’s offices were the best performing sector producing a total
return of 1.2 per cent. The portfolio void rate was 5.0 per cent.

Investment Activity

There were no sales or purchases during the quarter.

Leasing Activity

The letting of Unit 8 (ex-Poundworld) at Newbury Retail Park completed to
Hobbycraft at a rent of £215,578 per annum.

The 4(th) floor at 7 Birchin Lane was let at a rent of £152,955 per annum,
whilst in July Leica Cameras completed a lease of the 4(th) floor at 6-8 James
Street at a rent of £121,500 per annum.

Portfolio Analysis – Sector Breakdown

                             Portfolio  Value  £m  % of portfolio as at  30 June 2019  % like for like capital value shift (excl transactions) 
 Offices                                    546.6                                39.5                                                      0.3 
 West End                                   204.6                                14.8                                                      0.0 
 South East                                  91.9                                 6.6                                                      1.0 
 South West                                  33.4                                 2.4                                                      0.0 
 Rest of UK                                 196.3                                14.2                                                      0.2 
 City                                        20.4                                 1.5                                                     -0.1 
 Retail                                     309.1                                22.4                                                     -1.0 
 West End                                   235.1                                17.0                                                     -1.2 
 South East                                  42.3                                 3.1                                                     -1.9 
 Rest of UK                                  31.7                                 2.3                                                     -0.4 
 Industrial                                 251.9                                18.2                                                     -0.8 
 South East                                  30.1                                 2.2                                                      0.0 
 Rest of UK                                 221.8                                16.0                                                     -0.9 
 Retail Warehouse                           146.6                                10.6                                                     -3.5 
 Alternatives                               128.9                                 9.3                                                     -0.1 
 Total Property Portfolio                 1,383.1                               100.0                                                     -0.8 

Portfolio Analysis – Geographic Breakdown

                             Market  Value  £m  % of portfolio as at  30 June 2019 
 West End                                498.5                                36.0 
 South East                              298.8                                21.6 
 Scotland                                174.8                                12.6 
 Midlands                                164.8                                11.9 
 North West                              162.7                                11.8 
 South West                               33.3                                 2.4 
 Eastern                                  30.0                                 2.2 
 Rest of London                           20.2                                 1.5 
 Total Property Portfolio              1.383.1                               100.0 

Top Ten Investments

                                                                       Sector 
 Properties valued in excess of £250 million                                  
 London W1, St Christopher’s Place Estate *                             Mixed 
 Properties valued between £100 million and £150 million                      
 London SW1, Cassini House, St James’s Street                          Office 
 Properties valued between £50 million and £70 million                        
 Newbury, Newbury Retail Park                                Retail Warehouse 
 Solihull, Sears Retail Park                                 Retail Warehouse 
 London SW19, Wimbledon Broadway**                                      Mixed 
 Properties valued between £40 million and £50 million                        
 Crawley, Leonardo House, Manor Royal                                  Office 
 Winchester, Burma Road                                           Alternative 
 Manchester, 82 King St                                                Office 
 Properties valued between £30 million and £40 million                        
 Aberdeen, Unit 2 Prime Four Business Park, Kingswells                 Office 
 Aberdeen, Unit 1 Prime Four Business Park, Kingswells                 Office 
                                                                              

*Mixed use property of retail, office, food/beverage and residential space.

**Mixed use property of retail, food/beverage and leisure space.

Summary Balance Sheet

                                                £m  Pence per share  % of Net Assets 
 Property Portfolio                        1,383.1            173.0            126.9 
 Adjustment for lease incentives            (21.4)            (2.7)            (2.0) 
 Fair Value of Property Portfolio          1,361.7            170.3            124.9 
 Debtors                                      26.2              3.4              2.4 
 Cash                                         30.0              3.7              2.7 
 Current Liabilities                        (17.5)            (2.2)            (1.6) 
 Total Assets (less current liabilities)   1,400.4            175.2            128.4 
 Non-Current liabilities                     (2.1)            (0.3)            (0.2) 
 Interest rate swap                          (0.2)                -                - 
 Interest-bearing loans                    (308.3)           (38.6)           (28.2) 
 Net Assets at 30 June 2019                1,089.8            136.3            100.0 

Borrowings

The Group’s borrowings consist of a £260 million loan with a term to 31
December 2024 and a fixed interest rate of 3.32 per cent per annum. The Group
also has a £50 million bank loan with a term to 21 June 2021 on which the
interest rate has been fixed, through an interest rate swap of the same
notional value and duration, at 2.522 per cent per annum. In addition, the
Board has agreed an additional revolving credit facility of £50 million with
Barclays over the same period, to be used for ongoing working capital purposes
and to provide the Group with the flexibility to acquire further property
should the opportunity arise. This facility is currently undrawn.

The Group’s weighted average cost of debt is 3.3 per cent per annum.

Key Information

This statement and further information regarding the Company, including
movements in the share price since the end of the period and the Group’s
most recent annual and interim reports, can be found at the Company’s
website bmocommercialproperty.com.

The next quarterly valuation of the property portfolio will be conducted by
CBRE Limited during September 2019 and it is expected that the unaudited NAV
per share as at 30 September 2019 will be announced in October 2019.

This announcement contains inside information.

Enquiries:

Richard Kirby
BMO REP Asset Management plc
Tel: 0207 499 2244

Graeme Caton
Winterflood Securities Limited
Tel: 0203 100 0268



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