BCPT reports negative returns

Balanced Commercial Property Trust has reported a negative set of results for the six months ended 30 June. The group, which is being taken over by a Starwood-backed business in a £673m deal, saw a portfolio return of 0.5%, underperforming the MSCI All Property Index figure of 1.8%. Its NAV total return was -1.9%. Chairman Paul Marcuse said that the trust’s underperformance was attributed primarily to its exposure to offices, particularly its regional business parks. BCPT has sought to address the level of its exposure to offices through a number of disposals, offloading almost £54m of assets during the first half of the year. A further £60.7m of disposals have been completed post period end. The group said following its sales it now had £120m of available cash. “Amid cautious optimism in the capital markets, and a more supportive economic backdrop, there are tentative signs that the outlook for certain real estate sectors may be beginning to turn,” said Marcuse. “While the geopolitical landscape remains volatile, a number of market participants are beginning to look to the next stage of the cycle.”