Picton Property Income Limited Results analysis from Kepler Trust Intelligence

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Picton Property Income Limited

14 November 2023

Picton Property Income (PCTN)

14/11/2023

Results analysis from Kepler Trust Intelligence

Over the six months to 30/09/2023, PCTN's property total return was 1.0%, ahead of the MSCI UK quarterly property index's total return of -0.5%. PCTN's net assets decreased 1.9% to GBP537m, or 99p per share. The like-for-like property valuation declined 1.2% to GBP757.1m. PCTN paid dividends totaling GBP9.5m, or 1.75p (Six months to 30/09/2022: 1.75p) which were 105% covered. PCTN's gearing is 28% LTV. 93% of PCTN's debt is fixed rate, and the average interest rate is 3.9% and the average maturity is 7.8 years.

During the period, further planning consents were received to convert 30,000 sq ft of office space at Angel Gate into residential units, have exchanged contracts to sell a vacant office in Cardiff for conversion to student accommodation and submitted an application to convert part of the Charlotte Terrace W14 office asset to residential. This results in a reduction of office exposure from 31% to 26%.

PCTN's results provide a reminder of some its key strengths. First, 93% of PCTN's debt is fixed, with an average maturity of 7.8 years, so there is very little pressure on dividend cover from rising debt costs. Second, there are various active management initiatives in progress with the office exposure likely to reduce due to changes in use. Third, PCTN has significant reversionary potential, with its reversionary yield at 6.8% compared to its net initial yield of 5.0%.

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November 14, 2023 09:05 ET (14:05 GMT)