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PCTN Picton Property Income Ld

65.20
2.10 (3.33%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Picton Property Income Ld LSE:PCTN London Ordinary Share GB00B0LCW208 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  2.10 3.33% 65.20 64.80 65.00 65.00 63.00 63.10 1,779,352 16:35:16
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Real Estate Investment Trust 51.82M -89.53M -0.1642 -3.96 354.4M

Picton Prop Inc Ltd Half Year Results

14/11/2017 7:01am

UK Regulatory


 
TIDMPCTN 
 
14 November 2017 
 
                        PICTON PROPERTY INCOME LIMITED 
                           LEI: 213800RYE59K9CKR4497 
                               HALF YEAR RESULTS 
                   ("PICTON", THE "COMPANY" OR THE "GROUP") 
 
Picton (LSE: PCTN) announces its half year results for the six month period to 
30 September 2017. 
 
Continued NAV and earnings growth with dividend increase 
 
-    Profit after tax of GBP30.7 million 
 
-    Total return for the six months of 7.1% 
 
-    Increase in EPRA NAV per share of 5.0%, to 86 pence per share 
 
-    Gearing of 28.2% and weighted average interest rate reduced from 4.2% to 
4.1% 
 
-    Dividends paid of GBP9.2 million or 1.7 pence per share 
 
-    Dividend cover of 118% 
 
-    3% increase in annual dividend announced today, to 3.5 pence per share 
 
Portfolio outperformance 
 
-    Total property return of 6.3%, outperforming the MSCI IPD Quarterly 
Benchmark of 5.0% 
 
-    Improved occupancy to 95%, ahead of the MSCI IPD Quarterly Digest of 93% 
 
-    Acquisition of multi-let office in Bristol for GBP23.2 million 
 
-    Two disposals for GBP9.9 million, 37% ahead of March 2017 valuation 
 
-    Like-for-like portfolio rental income growth of 4.4% 
 
-    Like-for-like ERV growth of 1.7% 
 
-    8% increase in average lot size to GBP12.7 million 
 
                             30 September       31 March 
                                 2017             2017 
 
Property assets*               GBP652.1m          GBP615.2m 
 
Net assets                     GBP463.8m          GBP441.9m 
 
EPRA NAV per Share               86p              82p 
 
* net of lease incentives, see Note 9. 
 
                            Six months to    Six months to 
                             30 September     30 September 
                                 2017             2016 
 
Profit after tax                GBP30.7m           GBP15.7m 
 
Earnings per share               5.7p             2.9p 
 
EPRA earnings per share          2.0p             2.0p 
 
Total return                     7.1%             3.8% 
 
Total shareholder return         3.9%             5.7% 
 
Total dividend per share        1.70p            1.65p 
 
Dividend cover                   118%            179%** 
 
** 120% prior to one-off income. 
 
Picton Chairman, Nicholas Thompson, commented: 
 
"As demonstrated by these results the team remains focused on our objective to 
achieve consistent long-term performance on behalf of our shareholders. 
Additionally it is pleasing to be able to announce a further increase in our 
level of dividend. With an eye on the future, we remain committed to our 
current portfolio strategy whilst ensuring the Company is prepared to be able 
to convert to UK REIT status. This decision will depend on the forthcoming 
result of the Government's consultation into bringing non-resident landlord 
companies, like Picton, into the scope of UK corporation tax." 
 
Michael Morris, Chief Executive of Picton Capital, commented: 
 
"We have continued to make considerable progress in the first half, improving 
occupancy and increasing the overall lot size of the portfolio. Strong 
performance from the industrial and logistics sector in particular, contributed 
to NAV growth, along with the disposal of two non-core assets. With our recent 
Bristol acquisition there is GBP6 million of reversionary potential in the 
portfolio and we believe that capturing this is key to driving income and 
valuation growth in the short to medium term. As we continue to seek to grow 
the business and enhance returns, we are confident that Picton is well placed 
to continue delivering value for shareholders." 
 
This announcement contains inside information. 
 
For further information: 
 
Tavistock 
Jeremy Carey/James Verstringhe, 020 7920 3150, 
james.verstringhe@tavistock.co.uk 
 
Picton Capital Limited 
Michael Morris, 020 7011 9980, michael.morris@picton.co.uk 
 
The Company Secretary 
Northern Trust International Fund Administration Services (Guernsey) Limited 
 
Trafalgar Court 
Les Banques 
St Peter Port 
Guernsey 
GY1 3QL 
Andy Le Page, 01481 745 001, team_picton@ntrs.com 
 
Note to Editors 
 
Picton is a property investment company established in 2005.  It owns and 
actively manages a GBP661 million diversified UK commercial portfolio, invested 
across 52 assets and with around 350 occupiers (as at 30 September 2017). 
Through an occupier-focused, opportunity-led approach to asset management, 
Picton aims to be one of the consistently best performing diversified UK 
property companies listed on the main market of the London Stock Exchange. 
 
www.picton.co.uk 
 
CHAIRMAN'S STATEMENT 
 
For the half year to 30 September 2017, I am pleased to report another set of 
good financial results, as evidenced by a profit after tax of GBP31 million, and 
a 5% increase in the net asset value over the six months. 
 
The Company generated earnings per ordinary share of 5.7 pence. Net assets rose 
by GBP22 million to stand at GBP464 million at 30 September, or 86 pence per share. 
Based on these results the total return for the period was 7.1%. 
 
Within the property portfolio, we have grown occupancy and achieved some 
significant lettings, which are set out in more detail in the Investment 
Manager's Report. 
 
Strategy 
 
As we stated in our last Annual Report, our aim is to be one of the 
consistently best performing UK diversified property companies listed on the 
main market of the London Stock Exchange. 
 
In order to achieve this aim, we have five key strategic priorities - working 
with occupiers, growing net income, operational efficiency, portfolio and asset 
management and the effective use of debt. 
 
Performance 
 
At the portfolio level, our assets have continued to outperform the MSCI IPD 
Quarterly Benchmark delivering a total property return of 6.3%, against 5.0%, 
in part driven by our income focus, our portfolio allocation and some 
attractively priced disposals. 
 
Our ongoing charges over the period reduced to 1.1%, compared to 1.2% at 31 
March 2017. 
 
Whilst we have made good progress over the period, our objective is to generate 
consistent long term performance. Over the last five years we have increased 
our net asset value by 65% and our property portfolio has delivered an average 
annual total return of 12.7%. 
 
Property Portfolio 
 
In common with the wider market, the strongest performance within the portfolio 
has been in the industrial sector, followed by offices, with the retail and 
leisure sector making little progress, against a backdrop of higher inflation 
affecting retailers and consumers alike. 
 
Through investment activity and growth in capital values, we have increased the 
average lot size within the portfolio, by some 8% to GBP12.7 million, which in 
turn reflects part of our strategy to improve operational efficiency. 
 
Occupancy improved over the period and now stands at 95%, ahead of the market 
at 93%. We are confident of further lettings success which will improve the 
position. 
 
Capital Structure 
 
Recognising market risks and the ongoing uncertainty following last year's 
referendum result, we believe that it remains appropriate in the current 
climate to try and keep our gearing level below 30%. During the last six 
months, we extended one of our two revolving credit facilities, moving the 
maturity date from 2018 to 2021. We intend to make use of these facilities on a 
tactical basis. A short-term increase in gearing, with the potential to pay 
down debt via equity issuance or future asset sales, gives us operational 
flexibility and allows us to act opportunistically. During the period, we made 
a drawdown of GBP12.5 million to partly fund the acquisition of our new Bristol 
asset. 
 
The Company's shares continue to trade broadly in line with the net asset 
value, against a backdrop of some UK REITs and property companies trading at 
significant premiums or discounts. 
 
Future Growth 
 
The Directors believe that Picton is in a strong position to benefit from the 
economies of scale that would result from prudent growth of the Company's 
portfolio. As an internally managed company, we can do this without 
proportionately increasing our cost base. 
 
We will continue to seek to grow the asset base of the Company selectively with 
attractive opportunities, provided that these are sourced under the right 
market conditions. 
 
Corporate Structure 
 
Earlier this year the Government ran a consultation exploring the case and 
option for bringing non-resident landlord companies, such as Picton, into the 
scope of UK corporation tax. We expect any legislation in this regard to be 
announced in the Budget later this month. In anticipation of this, we have 
continued to progress our planning for a potential conversion to a UK REIT in 
2018. 
 
Contingent on the timing of the introduction of any new legislation, we expect 
to hold an extraordinary general meeting early in 2018 to seek shareholder 
approval for any corporate changes that may be required with UK REIT 
conversion. As part of this process, we are also reviewing how we can optimise 
our internal management structure by reducing costs and improving efficiency to 
maximise shareholder value. Although we do not intend to change our investment 
approach and portfolio strategy, we are undertaking an appraisal of the 
benefits of the Company's current technical listing status as an investment 
company, rather than that of a commercial company, which would be more in-line 
with our internally managed peers. 
 
Board Composition 
 
In our 2017 Annual Report, I highlighted that we would be seeking to recruit a 
new Director this year and I am pleased to confirm that, after a comprehensive 
search and selection process, we announced the appointment of Mark Batten to 
the Board in October. Mark, a recently retired partner from PwC, has extensive 
experience in financial services, real estate, corporate finance, structuring 
and transactions and will further broaden the skill set of the Board.  He will 
become Chairman of the Audit and Risk Committee during 2018 and Robert Sinclair 
has kindly agreed to remain on the Board to help facilitate this transition. 
 
Dividends 
 
During the period we paid GBP9.2 million in dividends, which were 118% covered by 
income profit. 
 
We have said previously that our policy is to maintain a covered dividend in 
the long term, which is important in enabling the Company to invest back into 
the portfolio and safeguard future performance, whilst also allowing us to grow 
dividends progressively as our earnings increase. 
 
Last year we announced a 3% dividend increase, having previously increased the 
dividend by 10% in 2015. I am pleased to confirm that after careful 
consideration by the Board, a further 3% increase in the Company's dividend has 
been approved. The annual dividend will be increased to 3.5 pence per share and 
the first quarterly dividend of 0.875 pence per share is expected to be paid in 
February 2018. Once any transition to a UK REIT is complete we will revisit our 
dividend policy, particularly in the light of REIT regime distribution 
requirements. 
 
Outlook 
 
Consensus forecasts indicate that future returns look set to be driven in the 
short term by income. Picton remains well positioned at a macro level in terms 
of its sector allocation and I am confident that the team will, through active 
management, continue to unlock value and outperform the market. 
 
We believe the basics of asset management, occupier retention and growing 
income through leasing are our core strengths. With GBP6 million of reversionary 
potential within the portfolio, we believe that capturing this is key to 
driving income and valuation growth in the short to medium term. As we continue 
to seek to grow the business and enhance returns, the Board is confident that 
Picton is well placed to carry on delivering value for shareholders. 
 
Nicholas Thompson 
Chairman 
13 November 2017 
 
INVESTMENT MANAGER'S REPORT 
 
Occupancy 
95% 
 
Number of assets 
52 
 
Average lot size 
GBP12.7m 
 
Estimated rental value 
GBP47.6m 
 
Economic Backdrop 
 
During the last six months no significant progress appears to have been made in 
the negotiations surrounding the UK's exit from the European Union, creating a 
general feeling of uncertainty. Despite this, UK GDP has been positive, albeit 
growing at a modest rate of 0.4% in the third quarter of 2017 and 0.3% in the 
second quarter of 2017. 
 
Together with persistently higher than expected inflation, primarily driven by 
weak sterling as well as low productivity, the future economic growth outlook 
remains subdued. Despite this, the labour market has been resilient, recording 
its highest level of employment in over four decades. 
 
The decision to leave the European Union is having a noticeable impact on the 
economic outlook. The increase in the inflation rate reflects the impact of the 
fall in sterling on the price of imports. In order to counter this inflationary 
pressure earlier this month the Bank of England increased the Base Rate by 
0.25% to 0.5%, its first rise in ten years. In our view, this suggests that 
they are sufficiently confident that the economy can absorb this rise without 
significant impact and whilst further rises are possible, the Monetary Policy 
Committee stated that any future increases would be expected to be at a gradual 
pace and to a limited extent. They also indicated that there remains 
considerable risks to the economic outlook, including the response of 
households, businesses and financial markets to developments related to the 
process of EU withdrawal and with this move, the Committee has further headroom 
to respond as required. 
 
UK Property Market 
 
The commercial property market has held up well against this backdrop. The MSCI 
IPD Monthly Index shows a total return for All Property for the six months to 
September 2017 of 5.2%, with an income return of 2.7%. Capital growth for the 
six months to September 2017 was 2.4% compared to 2.0% for the six months to 
March 2017. Rental growth was positive at 1.0% for the six months to September, 
marginally higher than 0.8% for the six months to March 2017. Initial yields 
have moved from 5.3% in March 2017 to 5.2% in September 2017. 
 
Industrial remained the best performing sector for the six months to September 
with total returns of 9.6%, almost double the All Property average. For the 
same period, office and retail returns were 4.0% and 3.7%, respectively. 
 
The MSCI IPD Quarterly Digest recorded an occupancy rate of 93.0% in September 
2017 (March 2017: 92.8%). 
 
In the industrial sector, returns comprised 2.8% income and 6.7% capital 
growth. Rental growth was 2.6%. In terms of capital growth by segment, growth 
ranged from 2.8% in North and Scotland to 8.7% in London. Similarly, rental 
growth ranged from 4.9% in Inner South East to 1.0% for North and Scotland. 
 
In the office sector, returns comprised 2.4% income and 1.6% capital growth. 
Rental growth was 0.7%. In terms of capital growth by segment, growth ranged 
from 2.9% in Outer South East to -2.0% in Scotland. Similarly, rental growth 
ranged from 3.0% for Outer South East to -0.3% for Scotland. 
 
In the retail sector, returns comprised 3.0% income and 0.7% capital growth. 
Rental growth was 0.3%. In terms of capital growth by segment, growth ranged 
from 3.5% for Retail Warehouses in London to -2.5% for Rest of UK Shopping 
Centres. Similarly, rental growth ranged from 2.2% for South East Retail 
Warehouses to -1.5% for West Midland Standard Retail. 
 
According to Property Data, total investment for the six months to September 
2017 was GBP30 billion, an increase of 10.2% compared to GBP27.2 billion in the six 
months to March 2017. Over half of total investment in the period was from 
overseas investors. 
 
Performance 
 
For the six months to September, the portfolio returned 6.3%, outperforming the 
MSCI IPD Quarterly Benchmark which delivered 5.0%. The income return was 2.9%, 
0.7% ahead of the Benchmark. 
 
The portfolio valuation increased on a like-for-like basis by 3.4% over the 
period. The industrial portfolio increased by 6.0% and the office portfolio by 
3.1%, while there was no change in the retail and leisure portfolio. 
 
Our overweight position to the better performing sectors combined with active 
management and leasing activity contributed to the portfolio's outperformance. 
Passing rent increased on a like-for-like basis by 4.4%, with the lettings at 
50 Farringdon Road, London EC1 being the major driver. Overall, like-for-like 
ERV grew by 1.7%, led by the industrial portfolio at 3.0%, followed by the 
office portfolio at 1.5% and no change on the retail and leisure portfolio. 
 
Portfolio Strategy 
 
We believe that our diversified portfolio strategy, focus on income, overweight 
position to the better performing industrial and office sectors and our strong 
occupier focus is entirely appropriate for current market conditions. We remain 
committed to providing good quality space that businesses want to occupy and to 
working with our occupiers to assist them in achieving their goals. 
 
We have demonstrated over the long term our ability to consistently deliver a 
higher than average income return despite a shorter than average lease expiry 
profile. By offering occupiers flexibility, we have been able to maintain a 
high occupancy rate. Where occupiers vacate, our aim is to create a product 
which is attractive to occupiers and re-lets easily. Over the six months, we 
have invested GBP2.3 million back into our assets, including refurbishing vacant 
space at 180 West George Street, Glasgow and at Angel Gate, London, developing 
the Starbucks pod unit at Gloucester Retail Park and modernising our industrial 
estate in Wokingham. 
 
Investment Activity 
 
Investment activity over the period reflected our strategy of investing into 
sectors where we have identified value and income growth potential and 
disposing of assets where upside is limited and business plans have been 
completed. 
 
Two non-income producing office assets in Bracknell were sold for a combined 
consideration of GBP9.9 million, representing an overall gain of 37% above the 
March valuation. L'Avenir was a single-let office, which became vacant at the 
end of June. Phoenix House was also vacant and followed the disposal of 
Queensgate House, both in Waterside Park, earlier in the year. The rationale 
for the disposals was the attractive pricing relative to the future leasing and 
redevelopment risk. 
 
During the period, we completed the acquisition of a grade A waterfront office 
building located in Bristol city centre for GBP23.2 million. Tower Wharf was 
constructed in 2005 to a BREEAM 'Excellent' rating, and provides over 70,000 sq 
ft of office accommodation arranged over ground and five upper floors. With 
25,400 sq ft of vacant accommodation already fully refurbished to a high 
standard, we envisage leasing the space quickly in a strong occupational 
market. This is a good example of the type of investment opportunity where we 
can unlock attractive future performance. 
 
The purchase price reflects a net initial yield of 3.6%, which is expected to 
grow to 7.5% on leasing the remaining vacant space and capturing the full 
reversionary potential. The purchase price represents a capital value of 
approximately GBP328 per sq ft, in line with the estimated replacement cost. 
 
Occupancy 
 
Occupancy has increased over the period to 95%, primarily due to the lettings 
at 50 Farringdon Road, London EC1 and Unit E, River Way, Harlow, which 
contribute a combined rent of over GBP1 million per annum. 
 
The purchase of Tower Wharf, Bristol held back the occupancy as it is currently 
64% occupied, which provides significant upside potential upon letting. 
Combined with the recently refurbished floors at 180 West George Street in 
Glasgow, these two properties account for 44% of the portfolio void. Both 
buildings provide grade A space in regional city centre markets with tight 
supply and we are confident about the letting prospects. 
 
Looking Ahead 
 
The portfolio has GBP6.0 million of reversion, primarily in the industrial and 
office sectors. GBP2.6 million of the reversion is from lettings, GBP1.6 million 
from lease renewals and rent reviews with the remainder from contracted 
uplifts. The supply and demand imbalance, combined with a lack of development, 
should drive rental growth in the industrial and office sectors in particular, 
providing further upside. 
 
Picton Capital Limited 
13 November 2017 
 
INVESTMENT MANAGER'S REPORT 
 
 
INDUSTRIAL PORTFOLIO 
 
                                                           30       31 March 
                                                        September     2017 
                                                          2017 
 
Value                                                    GBP265.4      GBP250.4 
                                                         million     million 
 
Internal Area                                           2,730,000   2,730,000 
                                                          sq ft       sq ft 
 
Annual Rental Income                                      GBP15.8       GBP15.3 
                                                         million     million 
 
Estimated Rental Value                                    GBP17.8       GBP17.3 
                                                         million     million 
 
Occupancy                                                 98.2%       98.6% 
 
Number of Assets                                           17          17 
 
The industrial portfolio has continued to perform well. Tight supply, limited 
development and continued demand has resulted in significant rental growth, 
especially in the South East, which we have captured through asset management 
activity. Capital values increased by 6.0% on a like-for-like basis. The rent 
roll increased by 3.3% to GBP15.8 million per annum and the ERV grew by 3.0% to GBP 
17.8 million on a like-for-like basis. The portfolio has a weighted average 
lease length of 4.8 years to the first lease event. 
 
The UK wide distribution warehouse portfolio totals 1.3 million sq ft in six 
fully income producing units, let to occupiers including Belkin, DHL and The 
Random House Group. The multi-let estates, 69% located in the South East and 
31% in the rest of the UK, total 1.4 million sq ft and are 97% let. Eight units 
are vacant, three of which were recently surrendered. 
 
Notable lettings during the period include our largest industrial void, at Unit 
E, River Way in Harlow. This follows receipt of planning consent for a change 
of use, thereby satisfying conditions contained within an Agreement to Lease, 
completed earlier in the year.  The 30,500 sq ft letting secures a minimum 
ten-year term certain and will produce an initial rent of GBP0.2 million per 
annum. 
 
We have secured GBP0.14 million of additional income from five rent reviews 
settled over the period, 2% ahead of ERV. Two tenants have been retained at 
renewal securing GBP0.22 million per annum, 8% above ERV. Three leases were 
surrendered to facilitate active management and we expect to increase the 
passing rent, on re-letting, by 31% to GBP0.22 million per annum. Two of these 
units are under offer. 
 
The industrial portfolio currently has GBP2.0 million of reversion and with high 
occupancy we can look to capture this through active management and lease 
events. Looking to the end of 2018, we have 23 lease events with an ERV of GBP2.0 
million per annum, GBP0.3 million above the current passing rent. 
 
OFFICE PORTFOLIO 
 
                                                     30 September   31 March 
                                                         2017         2017 
 
Value                                                   GBP236.3       GBP213.9 
                                                       million      million 
 
Internal Area                                         936,000 sq   925,000 sq 
                                                          ft           ft 
 
Annual Rental Income                                    GBP14.9        GBP13.8 
                                                       million      million 
 
Estimated Rental Value                                  GBP18.8        GBP17.6 
                                                       million      million 
 
Occupancy                                               89.8%        87.5% 
 
Number of Assets                                          18           19 
 
Our office portfolio was rebalanced last year towards the regional markets, 
with 64% outside London, which has helped us to outperform. On a like-for-like 
basis capital values increased by 3.1% and the rent roll increased by 9.7% to GBP 
14 million per annum. The portfolio has a weighted average lease length of 3.8 
years, assisted by recent lettings and active management such as at Sentinel 
House in Fleet, where we removed the break clauses from two leases extending 
the income from 2020 to 2025 with no incentive. 
 
The portfolio is 90% let and letting activity was dominated by the largest 
office vacancy at 50 Farringdon Road. Three suites of a combined 15,600 sq ft 
have been let, generating a combined rent of GBP0.81 million per annum.  The 
lettings are 2% ahead of ERV and 87% of the building is now let. 
 
We have secured a 70% uplift at one rent review, increasing the rent to GBP0.19 
million per annum, 7% over ERV, and retained three tenants at lease renewal 
securing GBP0.28 million per annum, 3% above ERV. 
 
The short-term opportunities are the letting of the recently acquired Tower 
Wharf, Bristol, which is being marketed with good interest, and 180 West George 
Street, Glasgow where the refurbishment was completed in August. The combined 
ERV of voids at these two properties is GBP1.1 million. Along with the final 
suite at 50 Farringdon Road, these three properties account for 69% of the 
total office void. 
 
We believe that our regional offices will perform well due to a tight supply in 
key locations, continued demand for space and the potential for rents to 
increase from relatively low levels. In London, the occupational market is 
active but more subdued. The portfolio has GBP3.8 million of reversionary 
potential and up to the end of 2018 the office portfolio has 37 lease events 
with an ERV of GBP3.0 million per annum, GBP0.14 million above the current passing 
rent. 
 
RETAIL AND LEISURE PORTFOLIO 
 
                                                     30 September   31 March 
                                                         2017         2017 
 
Value                                                   GBP159.7       GBP160.1 
                                                       million      million 
 
Internal Area                                         824,000 sq   824,000 sq 
                                                          ft           ft 
 
Annual Rental Income                                    GBP10.9        GBP11.0 
                                                       million      million 
 
Estimated Rental Value                                  GBP11.0        GBP11.0 
                                                       million      million 
 
Occupancy                                               97.1%        98.8% 
 
Number of Assets                                          17           17 
 
On a like-for-like basis both capital values and the rent roll remained flat 
over the period, with passing rent being GBP10.9 million per annum. The portfolio 
has a weighted average lease length of 7.9 years and is rack rented. The retail 
portfolio is delivering the highest yield of 6.3% and a lot of the rents have 
been rebased since 2007. 
 
The largest asset in the retail and leisure portfolio by value is Stanford 
House in Covent Garden, a prime central London asset. 40% is in four retail 
warehouses with active management potential, and the remainder is in high 
street retail and leisure. 
 
There has been limited asset management activity in the retail and leisure 
portfolio reflecting the already high occupancy at 97%. The most significant 
void relates to a retail warehouse unit in Bury, Greater Manchester, which 
recently became vacant. We are working on a comprehensive refurbishment to 
attract new retailers. The park continues to be anchored by TK Maxx. 
 
During the period, the creation of the pod unit at Gloucester Retail Park was 
finished and a lease completed with a Starbuck's franchisee for ten years at GBP 
60,000 per annum. At the same time, we improved the landscaping and signage, 
and resurfaced the car park. 
 
Existing trends will continue in retail and leisure, with big regional cities 
and the best micro-locations succeeding at the expense of more secondary 
locations; however, we consider our exposure to the sector to be robust with 
added value opportunities on the retail warehouse parks and at Stanford House 
in Covent Garden in particular. Up to the end of 2018 the retail and leisure 
portfolio has only ten lease events with an ERV of GBP2.1 million per annum, GBP 
0.43 million above the current passing rent. 73% of this reversion relates to 
Stanford House, where the leases are lined up to secure vacant possession to 
facilitate a comprehensive refurbishment and repositioning scheme in 2018. 
 
TOP TEN ASSETS 
 
The largest assets in the portfolio as at 30 September 2017, ranked by capital 
value, represent 48% of the total portfolio valuation and are detailed below: 
 
                                                        Sector          Tenure  Approximate 
                                                                               Area (sq ft) 
 
Parkbury Industrial Estate, Radlett, Herts.          Industrial       Freehold      336,700 
 
River Way Industrial Estate, Harlow, Essex           Industrial       Freehold      455,000 
 
Angel Gate Office Village, City Road, London EC1     Office           Freehold       64,500 
 
Stanford House, Long Acre, London WC2                Retail           Freehold       19,600 
 
50 Farringdon Road, London EC1                       Office          Leasehold       31,000 
 
Tower Wharf, Bristol                                 Office           Freehold       70,600 
 
Shipton Way, Rushden, Northants.                     Industrial       Freehold      312,850 
 
Pembroke Court, Chatham, Kent                        Office          Leasehold       86,300 
 
Colchester Business Park, Colchester, Essex          Office          Leasehold      151,000 
 
Queens Road, Sheffield                               Retail           Freehold      106,000 
                                                     Warehouse 
 
A full portfolio listing is available on the Company's website: 
www.picton.co.uk 
 
PORTFOLIO ALLOCATION BY VALUE 
 
Sector                           % 
 
Industrial                      40.1 
 
South East                      27.5 
 
Rest of UK                      12.6 
 
Office                          35.7 
 
London City & West End          4.2 
 
Inner & Outer London            8.8 
 
South East                      10.6 
 
Rest of UK                      12.1 
 
Retail & Leisure                24.2 
 
Retail Warehouse                9.8 
 
High Street - Rest of           6.8 
UK 
 
High Street - South             5.5 
East 
 
Leisure                         2.1 
 
DIRECTORS' RESPONSIBILITIES 
 
STATEMENT OF PRINCIPAL RISKS AND UNCERTAINTIES 
 
The Company's assets comprise direct investments in UK commercial property. Its 
principal risks are therefore related to the commercial property market in 
general and its investment properties. Other risks faced by the Company include 
economic, investment and strategic, regulatory, management and control, 
operational and financial risks. 
 
These risks, and the way in which they are managed, are described in more 
detail under the heading 'Risk Management' within the Strategic Report in the 
Company's Annual Report for the year ended 31 March 2017. The Company's 
principal risks and uncertainties have not changed materially since the date of 
that report. 
 
STATEMENT OF GOING CONCERN 
 
The Directors have a reasonable expectation that the Group has adequate 
resources to continue in operational existence for the foreseeable future. 
Therefore, they continue to adopt the going concern basis in preparing the 
financial statements. 
 
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE INTERIM REPORT 
 
We confirm that to the best of our knowledge: 
 
a.     the condensed set of consolidated financial statements has been prepared 
in accordance with IAS 34 'Interim Financial Reporting'; 
 
b.     the Chairman's Statement and Investment Manager's Report (together 
constituting the Interim Management Report) together with the Statement of 
Principal Risks and Uncertainties above include a fair review of the 
information required by the Disclosure Guidance and Transparency Rules ('DTR') 
4.2.7R, being an indication of important events that have occurred during the 
first six months of the financial year, a description of principal risks and 
uncertainties for the remaining six months of the year, and their impact on the 
condensed set of consolidated financial statements; and 
 
c.     the Chairman's Statement together with the condensed set of consolidated 
financial statements include a fair review of the information required by DTR 
4.2.8R, being related party transactions that have taken place in the first six 
months of the current financial year and that have materially affected the 
financial position or performance of the Company during that period, and any 
changes in the related party transactions described in the last Annual Report 
that could do so. 
 
The Directors are responsible for the maintenance and integrity of the 
corporate and financial information included on the Company's website, and for 
the preparation and dissemination of financial statements. Legislation in 
Guernsey governing the preparation and dissemination of financial statements 
may differ from legislation in other jurisdictions. 
 
By Order of the Board 
 
Robert Sinclair 
 
Director 
13 November 2017 
 
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
FOR THE HALF YEARED 30 SEPTEMBER 2017 
 
                                       Note    Income   Capital  6 months  6 months      Year 
                                                 GBP000      GBP000     ended     ended     ended 
                                                                       30        30  31 March 
                                                                September September      2017 
                                                                     2017      2016   audited 
                                                                unaudited unaudited     Total 
                                                                    Total     Total      GBP000 
                                                                     GBP000      GBP000 
 
Income 
 
Revenue from properties                   3    24,323         -    24,323    29,894    54,398 
 
Property expenses                         4   (5,605)         -   (5,605)   (5,324)  (12,011) 
 
Net property income                            18,718         -    18,718    24,570    42,387 
 
Expenses 
 
Management expenses                           (1,810)         -   (1,810)   (1,610)   (3,636) 
 
Other operating expenses                        (924)         -     (924)     (681)   (1,613) 
 
Total operating expenses                      (2,734)         -   (2,734)   (2,291)   (5,249) 
 
Operating profit before movement               15,984         -    15,984    22,279    37,138 
on investments 
 
Gains and (losses) on investments 
 
Profit/(loss) on disposal of              9         -     2,488     2,488     (570)     1,847 
investment properties 
 
Investment property valuation             9         -    17,362    17,362       266    15,087 
movements 
 
Total gains/(losses) on                             -    19,850    19,850     (304)    16,934 
investments 
 
Operating profit                               15,984    19,850    35,834    21,975    54,072 
 
Financing 
 
Interest receivable                                10         -        10        35        62 
 
Interest payable                              (4,904)         -   (4,904)   (6,018)  (10,885) 
 
Total finance costs                           (4,894)         -   (4,894)   (5,983)  (10,823) 
 
Profit before tax                              11,090    19,850    30,940    15,992    43,249 
 
Tax                                             (286)         -     (286)     (334)     (499) 
 
Profit and total comprehensive                 10,804    19,850    30,654    15,658    42,750 
income for the period 
 
Earnings per share 
 
Basic and diluted                         7      2.0p      3.7p      5.7p      2.9p      7.9p 
 
The total column of this statement represents the Group's Condensed 
Consolidated Statement of Comprehensive Income. The supplementary income return 
and capital return columns are both prepared under guidance published by the 
Association of Investment Companies. All items in the above statement derive 
from continuing operations. 
 
All income is attributable to the equity holders of the Company. There are no 
minority interests. Notes 1 to 15 form part of these condensed consolidated 
financial statements. 
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
FOR THE HALF YEARED 30 SEPTEMBER 2017 
 
                                                Note     Share     Other  Retained     Total 
                                                       Capital  Reserves  Earnings      GBP000 
                                                          GBP000      GBP000      GBP000 
 
Balance as at 31 March 2016                            157,449         -   259,683   417,132 
 
Profit for the period                                        -         -    15,658    15,658 
 
Dividends paid                                     6         -         -   (8,911)   (8,911) 
 
Balance as at 30 September 2016                        157,449         -   266,430   423,879 
 
Profit for the period                                        -         -    27,092    27,092 
 
Dividends paid                                     6         -         -   (9,046)   (9,046) 
 
Balance as at 31 March 2017                            157,449         -   284,476   441,925 
 
Profit for the period                                        -         -    30,654    30,654 
 
Share based awards                                           -       358         -       358 
 
Dividends paid                                     6         -         -   (9,181)   (9,181) 
 
Balance as at 30 September 2017                        157,449       358   305,949   463,756 
 
Notes 1 to 15 form part of these condensed consolidated financial statements. 
 
CONDENSED CONSOLIDATED BALANCE SHEET 
AS AT 30 SEPTEMBER 2017 
 
                                                          Note        30           30 September  31 March 
                                                               September                   2016      2017 
                                                                    2017              unaudited   audited 
                                                               unaudited                   GBP000      GBP000 
                                                                    GBP000 
 
Non-current assets 
 
Investment properties                                        9   652,104                621,149   615,170 
 
Tangible assets                                                       12                     34        17 
 
Accounts receivable                                                3,155                  3,470     3,204 
 
Total non-current assets                                         655,271                624,653   618,391 
 
Current assets 
 
Accounts receivable                                               16,256                 21,208    16,077 
 
Cash and cash equivalents                                         30,071                 35,302    33,883 
 
Total current assets                                              46,327                 56,510    49,960 
 
Total assets                                                     701,598                681,163   668,351 
 
Current liabilities 
 
Accounts payable and accruals                                   (19,421)               (21,246)  (19,958) 
 
Loans and borrowings                                        10   (1,128)               (30,115)   (1,104) 
 
Obligations under finance leases                                   (109)                  (109)     (109) 
 
Total current liabilities                                       (20,658)               (51,470)  (21,171) 
 
Non-current liabilities 
 
Loans and borrowings                                        10 (215,470)              (204,098) (203,540) 
 
Obligations under finance leases                                 (1,714)                (1,716)   (1,715) 
 
Total non-current liabilities                                  (217,184)              (205,814) (205,255) 
 
Total liabilities                                              (237,842)              (257,284) (226,426) 
 
Net assets                                                       463,756                423,879   441,925 
 
Equity 
 
Share capital                                               11   157,449                157,449   157,449 
 
Retained earnings                                                305,949                266,430   284,476 
 
Other reserves                                              11       358                                - 
                                                                         - 
 
Total equity                                                     463,756                423,879   441,925 
 
Net asset value per share                                   13       86p                    78p       82p 
 
These condensed consolidated financial statements were approved by the Board of 
Directors on 13 November 2017 and signed on its behalf by: 
 
Robert Sinclair 
Director 
 
Notes 1 to 15 form part of these condensed consolidated financial statements. 
 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
FOR THE HALF YEARED 30 SEPTEMBER 2017 
 
                                                          Note  6 months         6 months ended      Year 
                                                                   ended           30 September     ended 
                                                                      30                   2016  31 March 
                                                               September              unaudited      2017 
                                                                    2017                   GBP000   audited 
                                                               unaudited                             GBP000 
                                                                    GBP000 
 
Operating activities 
 
Operating profit                                                  35,834                 21,975    54,072 
 
Adjustments for non-cash items                              12  (19,480)                    327  (16,894) 
 
Interest received                                                     10                     35        62 
 
Interest paid                                                    (4,532)                (4,702)   (9,273) 
 
Tax paid                                                           (202)                   (91)     (232) 
 
Increase in receivables                                            (202)                (7,087)   (2,344) 
 
(Decrease)/ increase in payables                                   (709)                  2,710     1,449 
 
Cash inflows from operating activities                            10,719                 13,167    26,840 
 
Investing activities 
 
Acquisition of investment properties                         9                                -         - 
                                                                (24,543) 
 
Capital expenditure on investment properties                 9   (2,266)                (2,507)   (2,819) 
 
Disposal of investment properties                                  9,725                 27,602    51,510 
 
Purchase of tangible assets                                          (7)                      -         - 
 
Cash (outflows)/inflows from investing activities               (17,091)                 25,095    48,691 
 
Financing activities 
 
Borrowings repaid                                                  (546)               (16,323)  (45,965) 
 
Borrowings drawn                                                                                        - 
                                                                  12,500 - 
 
Financing costs                                                    (213)                  (485)     (485) 
 
Dividends paid                                               6   (9,181)                (8,911)  (17,957) 
 
Cash inflows/(outflows) from financing activities                  2,560               (25,719)  (64,407) 
 
Net (decrease)/increase in cash and cash equivalents             (3,812)                 12,543    11,124 
 
Cash and cash equivalents at beginning of period/                 33,883                 22,759    22,759 
year 
 
Cash and cash equivalents at end of period/year                   30,071                 35,302    33,883 
 
Notes 1 to 15 form part of these condensed consolidated financial statements. 
 
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
FOR THE HALF YEARED 30 SEPTEMBER 2017 
 
1. GENERAL INFORMATION 
 
Picton Property Income Limited (the "Company" and together with its 
subsidiaries the "Group") was registered on 15 September 2005 as a closed ended 
Guernsey investment company. 
 
The financial statements are prepared for the period from 1 April to 30 
September 2017, with unaudited comparatives for the period from 1 April to 30 
September 2016. Comparatives are also provided from the audited financial 
statements for the year ended 31 March 2017. 
 
2. SIGNIFICANT ACCOUNTING POLICIES 
 
These financial statements have been prepared in accordance with IAS 34 
'Interim Financial Reporting'. They do not include all of the information 
required for full annual financial statements, and should be read in 
conjunction with the financial statements of the Group as at and for the year 
ended 31 March 2017. 
 
The accounting policies applied by the Group in these financial statements are 
the same as those applied by the Group in its financial statements as at and 
for the year ended 31 March 2017. 
 
The annual financial statements of the Group are prepared in accordance with 
International Financial Reporting Standards ('IFRS') as adopted by the IASB. 
The Group's annual financial statements for the year ended 31 March 2017 refer 
to new Standards and Interpretations none of which had a material impact on 
these financial statements. There have been no significant changes to 
management judgement and estimates as disclosed in the last annual report and 
financial statements for the year ended 31 March 2017. 
 
3. REVENUE FROM PROPERTIES 
 
                                                               6 months  6 months      Year 
                                                                  ended     ended     ended 
                                                                     30        30  31 March 
                                                              September September      2017 
                                                                   2017      2016      GBP000 
                                                                   GBP000      GBP000 
 
Rents receivable (adjusted for lease incentives)                 20,366    20,730    40,555 
 
Surrender premiums                                                  133       213       263 
 
Dilapidation receipts                                               689       155     1,090 
 
Other income                                                        134     6,005     6,003 
 
Service charge income                                             3,001     2,791     6,487 
 
                                                                 24,323    29,894    54,398 
 
Rents receivable includes lease incentives recognised of GBP0.1 million (30 
September 2016: GBP0.9 million, 31 March 2017: GBP0.9 million). 
 
In the period ended 30 September 2016 and year ended 31 March 2017, GBP5.3 
million was included within other income from the settlement received in 
respect of a dispute at the Strathmore Hotel in Luton. 
 
4. PROPERTY EXPENSES 
 
                                                               6 months  6 months      Year 
                                                                  ended     ended     ended 
                                                                     30        30  31 March 
                                                              September September      2017 
                                                                   2017      2016      GBP000 
                                                                   GBP000      GBP000 
 
Property operating expenses                                       1,704     1,468     3,501 
 
Property void costs                                                 900     1,065     2,023 
 
Recoverable service charge costs                                  3,001     2,791     6,487 
 
                                                                  5,605     5,324    12,011 
 
5. OPERATING SEGMENTS 
 
The Board is charged with setting the Company's investment policy and strategy 
in accordance with the Company's investment restrictions and overall 
objectives. The key measure of performance used by the Board to assess the 
Group's performance is the total return on the Group's net asset value. As the 
total return on the Group's net asset value is calculated based on the net 
asset value per share calculated under IFRS as shown at the foot of the Balance 
Sheet, assuming dividends are reinvested, the key performance measure is that 
prepared under IFRS. Therefore no reconciliation is required between the 
measure of profit or loss used by the Board and that contained in the financial 
statements. 
 
The Board has considered the requirements of IFRS 8 'Operating Segments'. The 
Board is of the opinion that the Group, through its subsidiary undertakings, 
operates in one reportable industry segment, namely real estate investment, and 
across one primary geographical area, namely the United Kingdom, and therefore 
no segmental reporting is required. The portfolio consists of 52 commercial 
properties, which are in the industrial, office, retail, retail warehouse and 
leisure sectors. 
 
6. DIVIDS 
 
Declared and paid:                                             6 months  6 months             Year ended 
                                                                  ended     ended               31 March 
                                                                     30        30                   2017 
                                                              September September                   GBP000 
                                                                   2017      2016 
                                                                   GBP000      GBP000 
 
Interim dividend for the period ended 31 March 2016: 0.825            -     4,455                  4,455 
pence 
 
Interim dividend for the period ended 30 June 2016: 0.825             -     4,456                  4,456 
pence 
 
Interim dividend for the period ended 30 September 2016:              -         -                  4,456 
0.825 pence 
 
Interim dividend for the period ended 31 December 2016: 0.85          -         -                  4,590 
pence 
 
Interim dividend for the period ended 31 March 2017: 0.85         4,590         - 
pence                                                                             - 
 
Interim dividend for the period ended 30 June 2017: 0.85          4,591         - 
pence                                                                             - 
 
                                                                  9,181     8,911                 17,957 
 
The interim dividend of 0.85 pence per ordinary share in respect of the period 
ended 30 September 2017 has not been recognised as a liability as it was 
declared after the period end. A dividend of GBP4,591,000 will be paid on 30 
November 2017. 
 
7. EARNINGS PER SHARE 
 
Basic earnings per share is calculated by dividing the net profit for the 
period attributable to ordinary shareholders of the Company by the weighted 
average number of ordinary shares in issue during the period. The following 
reflects the profit and share data used in the basic and diluted profit per 
share calculation: 
 
                                                                 6 months    6 months  Year ended 
                                                                    ended       ended    31 March 
                                                                       30          30        2017 
                                                                September   September 
                                                                     2017        2016 
 
Net profit attributable to ordinary shareholders of the            30,654      15,658      42,750 
Company from continuing operations (GBP000) 
 
Weighted average number of ordinary shares for basic profit/  540,053,660 540,053,660 540,053,660 
(loss) per share 
 
Weighted average number of ordinary shares for diluted profit 541,084,131 540,053,660 540,053,660 
/(loss) per share 
 
The diluted number of shares reflects the contingent shares to be issued under 
the Long Term Incentive Plan. 
 
8. FAIR VALUE MEASUREMENTS 
 
The fair value measurement for the financial assets and financial liabilities 
are categorised into different levels in the fair value hierarchy based on the 
inputs to valuation techniques used. The different levels have been defined as 
follows: 
 
Level 1: quoted prices (unadjusted) in active markets for identical assets or 
liabilities that the Group can access at the measurement date. 
 
Level 2: inputs other than quoted prices included within Level 1 that are 
observable for the asset or liability, either directly or indirectly. The fair 
value of the Group's secured loan facilities, as disclosed in note 10, are 
included in Level 2. 
 
Level 3: unobservable inputs for the asset or liability. The fair value of the 
Group's investment properties is included in Level 3. 
 
The Group recognises transfers between levels of the fair value hierarchy as of 
the end of the reporting period during which the transfer has occurred. There 
were no transfers between levels for the period ended 30 September 2017. 
 
The fair value of all other financial assets and liabilities is not materially 
different from their carrying value in the financial statements. 
 
The Group's financial risk management objectives and policies are consistent 
with those disclosed in the consolidated financial statements for the year 
ended 31 March 2017. 
 
9. INVESTMENT PROPERTIES 
 
                                                               6 months  6 months      Year 
                                                                  ended     ended     ended 
                                                                     30        30  31 March 
                                                              September September      2017 
                                                                   2017      2016      GBP000 
                                                                   GBP000      GBP000 
 
Fair value at start of period/year                              615,170   646,018   646,018 
 
Acquisitions                                                     24,543         -         - 
 
Capital expenditure on investment properties                      2,266     2,507     2,819 
 
Disposals                                                       (9,725)  (27,072)  (50,601) 
 
Realised gains on disposal                                        2,520         -     2,440 
 
Realised losses on disposal                                        (32)     (570)     (593) 
 
Unrealised gains on investment properties                        25,416     7,336    25,729 
 
Unrealised losses on investment properties                      (8,054)   (7,070)  (10,642) 
 
Fair value at the end of the period/year                        652,104   621,149   615,170 
 
Historic cost at the end of the period/year                     659,722   670,047   654,057 
 
The fair value of investment properties reconciles to the appraised value as 
follows: 
 
                                                                     30        30  31 March 
                                                              September September      2017 
                                                                   2017      2016      GBP000 
                                                                   GBP000      GBP000 
 
Appraised value                                                 661,415   630,460   624,410 
 
Valuation of assets held under finance leases                     1,660     1,701     1,680 
 
Lease incentives held as debtors                               (10,971)  (11,012)  (10,920) 
 
Fair value at the end of the period/year                        652,104   621,149   615,170 
 
As at 30 September 2017, all of the Group's properties are Level 3 in the fair 
value hierarchy as it involves the use of significant inputs and there were no 
transfers between levels during the period. Level 3 inputs used in valuing the 
properties are those which are unobservable, as opposed to Level 1 (inputs from 
quoted prices) and Level 2 (observable inputs either directly, i.e. as prices, 
or indirectly, i.e. derived from prices). 
 
The investment properties were valued by CBRE Limited, Chartered Surveyors, as 
at 30 September 2017 on the basis of fair value in accordance with the RICS 
Valuation - Global Standards 2017 which incorporates the International 
valuation standards and the RICS Valuation - Professional Standards UK January 
2014 (revised April 2015). There were no significant changes to the inputs into 
the valuation process (ERV, net initial yield, reversionary yield and true 
equivalent yield), or assumptions and techniques used during the period, 
further details on which were included in note 14 of the consolidated financial 
statements of the Group for the year ended 31 March 2017. 
 
The Group's borrowings (note 10) are secured by a first ranking fixed charge 
over the majority of investment properties held. 
 
10. LOANS AND BORROWINGS 
 
                                                        Maturity        30        30 31 March 
                                                                 September September     2017 
                                                                      2017      2016     GBP000 
                                                                      GBP000      GBP000 
 
Current 
 
Aviva facility                                                 -     1,128     1,080    1,104 
 
Zero dividend preference shares                       15 October         -    29,035        - 
                                                            2016 
 
                                                                     1,128    30,115    1,104 
 
Non-current 
 
Santander revolving credit facility                 18 June 2021    12,500         -        - 
 
Canada Life facility                                20 July 2022    33,718    33,718   33,718 
 
Canada Life facility                                24 July 2027    80,000    80,000   80,000 
 
Aviva facility                                      24 July 2032    89,252    90,380   89,822 
 
                                                                   215,470   204,098  203,540 
 
                                                                   216,598   234,213  204,644 
 
In 2012, the Group entered into loan facilities with Canada Life Limited and 
Aviva Commercial Finance Limited for GBP113.7 million and GBP95.3 million 
respectively. The facility with Canada Life has a term of 15 years, with GBP33.7 
million repayable on the tenth anniversary of drawdown. The Aviva facility has 
a term of 20 years with approximately one third repayable over the life of the 
loan in accordance with a scheduled amortisation profile. 
 
The fair value of the secured loan facilities at 30 September 2017, estimated 
as the present value of future cash flows discounted at the market rate of 
interest at that date, was GBP223.2 million (30 September 2016: GBP235.3 million, 
31 March 2017: GBP229.1 million). The fair value of the secured loan facilities 
is classified as Level 2 under the hierarchy of fair value measurements. 
 
The Group has two revolving credit facilities ("RCF") with Santander Corporate 
& Commercial Banking. The facility that had a maturity date of 2018 was 
extended during the period and now expires at the same time as the second RCF, 
in June 2021. The extended RCF is initially for GBP24 million, and once drawn, 
interest is charged at 190 basis points over 3 month LIBOR. In total the Group 
has GBP51.0 million available under both facilities, of which GBP12.5 million was 
drawn down in the period. 
 
The weighted average interest rate on the Group's borrowings as at 30 September 
2017 was 4.10% (30 September 2016: 4.59%, 31 March 2017: 4.21%). 
 
11. SHARE CAPITAL AND OTHER RESERVES 
 
The Company has 540,053,660 ordinary shares in issue of no par value (30 
September 2016: 540,053,660, 31 March 2017: 540,053,660). 
 
The balance on the Company's share premium account as at 30 September 2017 was 
GBP157,449,000 (30 September 2016: GBP157,449,000, 31 March 2017: GBP157,449,000). 
 
The fair value of awards made under the Long Term Incentive Plan is recognised 
in other reserves. 
 
12. ADJUSTMENT FOR NON-CASH MOVEMENTS IN THE CASH FLOW STATEMENT 
 
                                                               6 months  6 months      Year 
                                                                  ended     ended     ended 
                                                                     30        30  31 March 
                                                              September September      2017 
                                                                   2017      2016      GBP000 
                                                                   GBP000      GBP000 
 
(Profit)/loss on disposal of investment properties              (2,488)       570   (1,847) 
 
Investment property valuation movements                        (17,362)     (266)  (15,087) 
 
Share based provisions                                              358         -         - 
 
Depreciation of tangible assets                                      12        23        40 
 
                                                               (19,480)       327  (16,894) 
 
13. NET ASSET VALUE 
 
The net asset value per ordinary share is based on net assets at the period end 
and 540,053,660 (30 September 2016: 540,053,660, 31 March 2017: 540,053,660) 
ordinary shares, being the number of ordinary shares in issue at the period 
end. 
 
At 30 September 2017, the Company had a net asset value per ordinary share of GBP 
0.86 (30 September 2016: GBP0.78, 31 March 2017: GBP0.82). 
 
14. RELATED PARTY TRANSACTIONS 
 
The total fees earned during the period by the five Directors of the Company 
were GBP103,000 (30 September 2016: GBP103,000, 31 March 2017: GBP205,500). As at 30 
September 2017 the Group owed GBPnil to the Directors (30 September 2016 and 31 
March 2017: GBPnil). 
 
There have been no changes in the related parties transactions described in the 
last annual report that could have a material effect on the financial position 
or performance of the Group in the first six months of the current financial 
year. 
 
The Company has no controlling parties. 
 
15. EVENTS AFTER THE BALANCE SHEET DATE 
 
A dividend of GBP4,591,000 (0.85 pence per share) was approved by the Board on 19 
October 2017 and is payable on 30 November 2017. 
 
The Group has exchanged on the disposal of one property since 30 September 2017 
for proceeds of GBP0.6 million. 
 
                                     ENDS 
 
 
 
END 
 

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