Picton Property Income Ld Share Discussion Threads

[nerja] 20/9/2012 08:33

Trustman, difficult to work out now, they open up with a 26000 buy of 36p then drop the offer, large sells delayed until after the close the last few days, looking a great buy area, but whats going on.
However SREI starting to drift down HICL and INPP not looking as chirpy but bank prefs still slowly going higher and utilities on the up, a bit of rotation going on possible but a strange one if its is.

[trustman] 19/9/2012 21:07

Agree on the chart Nerja....
The lower the price goes the higher it suggests the GRY on the Zero rollover might be.However even if they paid 3p that's 8.5% yield on ords at 35p if my sums are correct. Surely that must be just about a fully covered ord div?

Think I'll take a closer look at the IRET Zero in the meantime.

[danny500] 19/9/2012 19:16

maybe time to top up soon, guess markets waiting for confirmation of where the dividend will be next IMS.

[nerja] 19/9/2012 18:19

Any clues whats going on here, something going in the background or a large seller, that chart is looking a bit grim.

[trustman] 17/9/2012 22:58

Thanks T.
Dont suppose they will/are able to say what the div will be or the Zero GRY.
What should we wish for in share price terms.......a high uncovered div or a lower covered div?

[tiltonboy] 17/9/2012 17:33

I'm meeting them on Friday 28th if you have any questions.

[trustman] 17/9/2012 16:26

Skyship, interested in your view as to what would be best for shareprice.
Does PCTN need to have a fully covered div?

[skyship] 06/9/2012 08:01

Unlikely to be that low in my view. If permitted I will bid for a few on the basis of a 7.75% GRY.

No mention of the effect on the ordinary dividend; i suspect they'll announce that after all put to bed.

[flying pig] 06/9/2012 07:43

RNS re roll-over re-finance is the last piece in the jigsaw.
Let us hope that 6.5% is sufficient to get it away.

[trustman] 31/8/2012 05:27

Any forecasts on div policy?
Just noted better day yesterday.....and the pick up in Schroder Real Estate.
Is sentiment getting better for the sector?

[skyship] 01/8/2012 08:04

============================================================
DIVIDEND

The Company also announces an interim dividend of 1 pence per share in respect of the period 1 April 2012 to 30 June 2012 (1 January to 31 March 2012: 1 pence). The dividend will be paid on 24 August 2012 to shareholders on the register on 10 August 2012. The ex-dividend date will be 8 August 2012.

It remains the Board's intention to review the dividend policy following the refinancing of its zero dividend preference shares ("ZDPs").
============================================================

[cwa1] 31/7/2012 08:18

30 June 2012, Interim Dividend and Interim Management Statement
Picton Property Income Limited ("Picton" or the "Company"), the internally managed Investment Company with an income focused approach to the UK commercial property market, announces its Net Asset Value as at 30 June 2012 and Interim Dividend.
-- NAV per share 54 pence (March 2012: 57 pence).
-- Net Assets of GBP185.0 million (March 2012: GBP196.1 million).
-- 2.7% decrease in underlying property portfolio valuation. -- Significant group refinancing completed post period end, saving approximately GBP1 million per annum in financing costs.
-- Dividend of 1 pence per share declared. Commenting, Nick Thompson, Chairman of Picton, said:
"The primary focus over the period was to ensure the refinancing of our secured borrowings. This was successfully completed following the quarter end and now provides the Company with a significant saving on its future interest costs. We continue to operate in markets that remain challenging, but with approximately 40%, by rental value, of our total void within the wider London markets, we are positive that our portfolio initiatives can enhance this position."

[skyship] 25/7/2012 07:54

So, 4.2% for varying maturity dates - 10, 15 & 20yr. Excellent deal.

No news yet on the future dividend rate - though may hear shortly once they've resolved the ZDP repayment/roll-over issue...

[madmix] 11/7/2012 20:26

Thanks Alan. Will take a look.

[alanji] 11/7/2012 19:03

madmix - IRP has a yield of 10.8% (not covered)

[warrensearle] 11/7/2012 16:55

Ahhh yes i did see that when reading it then immediately forgot!

[skyship] 11/7/2012 16:53

Yes you are. The stats were for a 15month period...

[warrensearle] 11/7/2012 16:51

Am I missing something in the RNS it states a divi of 5p per share for 2012

I'm sure I get 1p a quarter I.e 4p per year

All of you talking about divi cuts are using 4p as start figure why does it say 5p in the RNS

I look forward to you all pointing out the obvious mistake I'm missing :)

[madmix] 11/7/2012 16:27

Alan,

Can I ask which peer is currently yielding 11%?

I'm currently only holding SREI in the sector, but have quiet a large chunk of them.

[alanji] 11/7/2012 16:21

Strangely, mangal, I was just about to post on that.
What I regard as its 'peers' are paying dividends of between 6% and 11% and the nearest similar co, SREI, is yielding almost 10% with no hint of a reduction and plans for it to be covered in the next couple of years. At 39p PCTN is yielding just over 10% with a 4p dividend. A reduction to 3p would reduce the yield to 7.7% - similar to some of its peers standing on a much lower discount (or a premium) to nav. Surely some of the large shareholders are going to be pressing for the co to reduce the discount and a dividend cut is not the way to achieve it.
I will continue to hold both PCTN and SREI for the moment. They have similar portfolios and gearing and both are at a 33% nav discount. SREI's tenant strength is better, but current dividend cover not so good. There may be a good buying opportunity if the dividend is cut.

[mangal] 11/7/2012 16:05

Well, they state that they
"remain committed to distributing as high a dividend as is commercially sensible to do so and will continue to benchmark our performance against the other income orientated listed property vehicles."

Does anyone know what the range of dividend rate paid by "other income orientated listed property vehicles" is?

[stevie blunder] 11/7/2012 14:02

Don't think they would sink that low, since the yield would be rock solid and the amortization of the debt would increase the NAV over time.


Hope I am wrong and your more optimistic view of the new divi is right though!

cheers

[skyship] 11/7/2012 13:37

Stevie - a qtly 0.75p would be the absolute minimum; ie @ 39p would be on a running yield of 7.7%. If they did cut to that level then we would for sure return to the 36.75p/37p recent lows.

[stevie blunder] 11/7/2012 10:47

The new debt is amortizing, so they will need cash for that as well, unless they plan some regular disposals.

I have penciled in a 25% cut in divi after this morning, hope that is enough.

[alanji] 11/7/2012 10:01

Strange announcement re the dividend, which I also read as a cut. However, the 93% cover is higher than I hoped for and going forward the dividend at the current rate should be more than covered - interest cost reduced, management costs reduced and some rent free holidays ending. The 16% of tenants on high or maximum risk is a bit of a concern though.