Picton Property Income Ld Share Discussion Threads

[skyship] 28/1/2013 07:31

Yes, all quite reassuring. NAV fall less than I feared:
=======================================================
Quarterly Highlights:

-- Net Assets of GBP174.5 million (30 September 2012: GBP180.2 million)
-- NAV/EPRA NAV per share of 51 pence (30 September 2012: 52 pence)
-- 1.4% decrease in underlying property portfolio valuation (30 Sep'12: -1.3%)
-- Debt reduction of GBP8.9 million, through amortisation and ZDP

Refinancing:

-- Improvement in net rental income through letting activity equivalent to GBP0.3 million per annum
-- Appointment of non executive director and investment director in January 2013
-- Dividend of 0.75 pence declared (30 September 2012: 0.75 pence)

[flying pig] 28/1/2013 07:15

Announcement this morning
Interim - dividend at .75p,
modest asset fall 51p
respectable lettings and asset management
rental income increase 300k
new non-exec (what value to Picton?)
new exec
overall steady as she goes.

[skyship] 24/1/2013 18:19

...and that's another 500k gone @ 36.25p. The seller continues, but it's all being absorbed.

[skyship] 24/1/2013 11:10

SREI today reported a "Like for like" direct portfolio decline (pre-Capex) of c2.7% in Q4'12. A similar result for us would reduce our NAV to c49p.

48p/49p....we would still be on a 25% NAV discount, so the 36p should hold IMO.

[cwa1] 22/1/2013 15:04

Indeed SKY, the "other people's money" syndrome that seems to pervade the investment management industry is one of the reasons I decided to look after my own savings many years ago. I certainly haven't regretted it-but without some rather strange fund manager's decisions along the way I certainly wouldn't have done nearly as well, so it's an ill wind all that....

[skyship] 22/1/2013 14:50

Quite right - 16th May. Lloyds reduce from 20.0m to 16.58m (4.8%).



Remembering their woeful selling of SREI at that time, perhaps they have learnt to sell when there is a buyer, rather than trash the price and then see a 20% recovery when they have exhausted! Still, the investment manager works for a bank, so he most likely still trousered a 25%+ bonus for his troubles - its only "Other People's Money" after all.

[cwa1] 22/1/2013 14:37

Happy enough with that. Lets us pick up a few at what will hopefully look like sensible prices when looking back. Don't see many holdings announcements, last one was Lloyds reducing back in May I believe. IF it is then there's probably a LONG way to go if they do intend to clear out. Time will tell.

[skyship] 22/1/2013 14:29

Been a substantial seller around for quite some time. When he eventually finishes then I would expect these to rise back to the 40p level, ie a 7.5% yield.

[cwa1] 22/1/2013 14:20

Picked up a few more off the book at 36.25p Certainly doesn't seem to be a shortage of them at around this price.

[cwa1] 22/1/2013 10:56

Morning All

Just re-entered here this morning for first time in a little while ahead of what will hopefully be a steady IMS and a solid 8% ongoing yield. Good fortune to all holders.

FWIW, 250K available inside spread online, so no shortage of stock currently....

[eeza] 22/1/2013 10:30

Seller must surely be running out by now.

[skyship] 22/1/2013 09:26

IMS, NAV & Divi statement must be due any day now - 26th Jan last year.

[hugepants] 21/1/2013 19:20

There's a 500K sell today. I think one of the institutional shareholders is still selling. I hold some investment trusts for income and they have all gone up 10%-15% in this rally except the commercial property ones ie. PCTN and UKCM. Seems this sector is well out of favour even though these two trusts yield 8%

[lord gnome] 13/1/2013 12:52

That's why I am here skyship. As soon as the new tax year starts I have a few more preference shares to sell and will reinvest here for the 8% yield plus the prospect of future capital growth. I see this as a widows and orphans income stock.

[flying pig] 13/1/2013 11:55

I agree a good SIPP stock - somewhat unexciting but very good medium term value.

[skyship] 12/1/2013 16:47

I have today updated the Header.

As shareholders will be aware, PCTN has just finished a year of share price under-performance versus many peers. As I state in the Header:

"Perhaps management had their eye off the ball to one extent, namely, unlike many of their peers, they failed to sell a few assets into the falling market so as to reduce the relatively high LTV of 53.2%. Hence, in the first 9months of 2012 Net Assets fell from £208m to £182m and the NAV slumped from 60p/share to 52p/share. Starting the year @ 36p, the shares see-sawed between 35p/43p, and closed out back @ 36p for an NAV discount of 30.8%; and a yield of 8.3%."

However:

"2012 was a significant year for PCTN with both the refinancing and the internalising of the management after the severance from ING Real Estate. It was also the year when the dividend was "rebased" from 1.0p/Qtr to a more sustainable, covered rate of 0.75p/Qtr."

As to that refinancing, well:

"PCTN then did this in style in Jun'12 and now sports one of the lowest and longest maturity financing packages in the whole commercial property sector"

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To my mind 2013 is likely to be another year of consolidation for PCTN; and the share price should find support from its high yield. However, a further NAV decline has to be on the cards, with a base level down at 48p a very real possibility; though that in itself might not shake the 35p/36p support as the NAV discount would still be a quite acceptable 25%.

I rate the shares a BUY/HOLD for income seekers.....and being one myself, I have bought back in this week.

[skinny] 10/1/2013 07:13

PICTON SECURES QUARTET OF CENTRAL LONDON LETTINGS

Picton (LSE:PCTN), the income focused property investment company, announces that it has secured four new lettings in central London as part of the Company's ongoing leasing programme.

At Boundary House, London EC3, the Company secured two lettings on a total of 3,207 square feet of offices with a rental income of £80,000 per annum. At Austin Friars, London EC2, two occupiers signed leases on office suites with a combined area of 1,954 square feet and a total rent of £82,000 per annum. All lettings were secured in line with the estimated rental values.

Picton will shortly start marketing two floors of office space totalling 4,834 square feet following a refurbishment at 1 Chancery Lane WC2. In addition, the refurbishment of 6,890 square feet of office space at the Company's Long Acre scheme in Covent Garden is due to complete at the end of January with marketing to commence thereafter. These schemes have a combined ERV of over £550,000 per annum.

Michael Morris, of Picton, commented: "Following the completion last year of a number of significant initiatives to strengthen both the financial and operational position of the Company, these latest lettings reflect our focus this year on portfolio initiatives. This will be achieved through a combination of asset management, to enhance underlying assets, and through increasing occupancy across the portfolio with a particular focus on London."


ENDS

[hugepants] 07/1/2013 15:39

this dog certainly hasn't joined in the rally so far

[lord gnome] 05/12/2012 08:47

On board as of this morning, using my ISA allowance. Nice 8% yield, paid quarterly and with good asset cover. But you would already know all that, wouldn't you? :-))

[cerrito] 03/12/2012 22:01

As an ex RUGB shareholder I have the zeros. Spent quite a lot of today looking to see if I should buy the ordinaries. I guess you know a stock is perfectly priced is when you do a good study and have difficulty reaching a conclusion.
Will keep on my radar. Being overweight the Midlands, Wales and the North and underweight London they are no a copy cat property trust and I note the positive things that Mucklow said the other day on the Midlands market

[badtime] 03/12/2012 19:14

Good to see a directors buy

[skinny] 23/11/2012 07:21

· Income profit for the period of £6.9 million (30 June 2011: £5.3 million);
· Benefits of internalisation evident through significant reduction in management expenses;
· Movement in net asset value per share to 52 pence (31 March 2012: 57 pence) driven by 4.0% decline in property portfolio valuation;
· Dividends paid of 2 pence per share (30 June 2011: 2 pence);
· Dividend cover of 100% for the period (30 June 2011: 76%, 31 March 2012: 82%);
· New loan facilities drawn down for £209.0 million, with simultaneous repayment of existing facilities;
· Successful rollover and placing of zero dividend preference shares following period end;
· Significant reduction in refinancing risk with staggered debt maturity profile achieved of 4, 10, 15 and 20 years;
· Annual cost savings from lower average interest rate on borrowings at 4.5% (31 March 2012: 4.8%).

OPERATIONAL HIGHLIGHTS

· Additional rental income of £0.4 million per annum generated through 13 lettings;
· Six active management transactions, extending and securing over £0.4 million per annum;
· Three lease renewals completed securing income of £0.7 million per annum;
· Longevity of income increased to 6.9 years from 6.8 years;
· Occupancy rate of 89% at 30 September 2012, down from 91% at 31 March 2012;
· Portfolio initial yield of 7.3% at 30 September 2012, ahead of the IPD Quarterly Index of 6.1%.

[speedsgh] 24/10/2012 10:50

DIVIDEND

As previously advised, Picton has undertaken a detailed review of its dividend policy in light of the new financing arrangements, which provide for debt repayment through amortisation.

In a market where, according to the IPD Monthly Index, commercial property valuation movements have been negative for 11 consecutive months and rental growth negative for 10 out of the past 12 months, it is important to have a distribution policy that enhances rather than undermines the balance sheet.

The Board has concluded that it would be inappropriate to continue to pay dividends on an uncovered basis out of capital reserves, but rather that it should rebase the dividend to a sustainable level financed by cashflow generated by the business.

This more prudent approach will ensure that the Group is able to reduce its indebtedness whilst at the same time providing adequate working capital to maintain and enhance the quality of the underlying portfolio, which should provide further potential for income and capital enhancement.

The Board has concluded that the appropriate quarterly dividend will be set at 0.75 pence per share.

As such, an interim dividend of 0.75 pence per share is declared in respect of the period 1 July 2012 to 30 September 2012 (1 April to 30 June 2012: 1 pence). The dividend will be paid on 30 November 2012 to shareholders on the register on 16 November 2012. The ex-dividend date will be 14 November 2012.

[flashheart] 24/10/2012 08:05

Unfortunately unable to add but a stonking buy it seems Skyship now all the doubts/unknowns are out of the way.

[skyship] 24/10/2012 08:03

So, 3p it is. Yield @ 35p = 8.57%. NAV discount = 32.7% at the slightly lower NAV of 52p (54p).