Picton Property Income Ld Share Discussion Threads

[skyship] 08/6/2011 19:00

For some reason I am unable to incorporate the old IRET charts into the Header. Will ask ADVFN tomorrow!

[skyship] 08/6/2011 18:42

Picton Property Income Limited - PCTN

INTRODUCTION: (Header last updated 10/11/2022)

This thread was started on 08/06/11 so as to replace the previous IRET thread after the name change (see link below).



In the second half of 2011 the share price was a very poor market; the share price fell remorselessly, by 32% to 36p, this versus a fall of c20% in the wider propco market. The fall was due to the weak CP market; and concerns over both the safety of the dividend and the refinancing of the Company’s debt. The ship steadied in 2012 as peers showed the way by refinancing through the new non-bank funding sources of corporate bonds, insurance companies and pension funds. 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:



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.

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%.

By Mar'15 however the share price had doubled to 72p as the NAV soared in a booming Real Estate market; and with commercial property yields still well North of long-term financing costs, the sector was set fair.


May'23 - Finals for 12months to 31/03/23:


Nov'23 - Interims to 30/09/23:


Jan'24: Trading Update & NAV:


THE BUSINESS:

Picton is a property investment company, investing in property in the UK, the Isle of Man and the Channel Islands.

The investment objective of the Company is to provide shareholders with an attractive level of income together with the potential for capital growth.

The Company holds a diversified portfolio of properties invested in five commercial sectors: industrial, office, retail warehousing, retail and leisure

At Sep’23, the portfolio comprised 49 assets with an average lot size of £15.4 million and valued in total at GBP757 million. The portfolio had a net initial yield of 5.0%; and a net reversionary yield of 6.8%. Sector split is: Industrial: 58.6%; Office: 30.7%; Retail & Leisure (inc. R/Whse): 10.7%.

Total borrowings were £226.8 million (93% fixed), with a weighted average interest rate of 3.9% and a weighted average debt maturity profile of 7.8 years. LTV = 28%.




WEBSITE:

INDUSTRY STATS:

Link to the ADVFN commercial property thread – “CP+”:

[purplebox] 05/6/2011 14:29

ING REIT is now Picton Property Income Ltd.