IT Property
A bargain gem Balanced Commercial Property Trust Named in Winterflood ’ s model portfolio at the start of the year , the
Balanced Commercial Property Trust has suffered from the hit to sentiment in 2022 – although its NAV is ticking up , its share price has tumbled and its discount stands at more than 50 %. Winterflood highlights its strong balance sheet , with a loanto-value of just 17 %, while Dzmitry Lipski , head of funds research at interactive investor , claims rising interest rates could provide opportunities .“ It has produced strong returns over the year and its yield [ 5.5 %] is attractive for income investors ,” he says .
The portfolio diversifier Impact Healthcare REIT Aside from movement in its share price , Impact Healthcare REIT is unlikely to be affected by what is happening in the wider economy : the trust predominantly invests in residential and nursing care homes . In its halfyear results , it said it had collected 100 % of rent since IPO in March 2017 . Analysts at Winterflood said : “ The portfolio ’ s long-term , inflationlinked leases with no breaks are appealing . Embedded rentcover penalties offer additional security .” It was trading on a premium as recently as August , but is now on an 18.2 % discount . It is yielding 5.8 %.
The e-commerce play Tritax Big Box REIT Tritax Big Box REIT was a new entrant into interactive investor ’ s top-10 most-bought list in September after its discount moved close to 50 %. The trust invests in logistics warehouses , which allowed it to benefit from the boom in online shopping , but it was hit by a reversal in sentiment towards the sector in April after Amazon announced it had excess capacity . It is the worst-performing property trust in the AIC universe this year , with losses of 44.3 %, yet it reported a strong set of halfyear results in August , with 10 % growth in its asset value and record levels of occupier demand . It is yielding 4.3 %.
Issue 88 - October 2022 / 61 /