Picton Property Income Ld Share Discussion Threads

[nickrl] 17/4/2024 10:34

@specto not yet but its share price has dropped more than some of its peers but much better value elsewhere still. PCTN and CREI would make a good combo but as @Sky says both too independent but maybe AEWU or AIRE would be a good fit.

[spectoacc] 17/4/2024 06:46

A while since I've looked at PCTN, but is it really better than say the near-certain returns at API, the yield at say EBOX, or the better sub-sector at say SHED?

[nickrl] 16/4/2024 18:01

Yield closing in on 6% makes it start to look interesting especially as its covered with a bit of margin currently following the Angel Gate disposal clearing the RCF with not much loss of rental income.

[arja] 16/4/2024 16:28

might have to change the header and looks like more downside to come although close to chart support

[speedsgh] 30/1/2024 10:16

Dividend Declaration -

Picton announces an interim dividend payment in respect of the financial period from 1 October 2023 to 31 December 2023, maintained at 0.875 pence per share.

The dividend timetable is set out below:

Ex-Dividend Date: 8 February 2024
Record Date: 9 February 2024
Pay Date: 29 February 2024

The dividend of 0.875 pence per share will be designated as a property income distribution ('PID').

[speedsgh] 30/1/2024 10:15

Trading Update and Net Asset Value as at 31 December 2023 -

Lena Wilson CBE, Chair of Picton, commented:
"The real estate market showed continued resilience from an occupational perspective, with all three core sectors showing positive rental growth for the year. With capital values having seen on average a 25% write down since their 2022 peak, the outlook, assuming interest rates have peaked, will become supportive and as such we expect a stabilisation of values in 2024."

Michael Morris, Chief Executive of Picton, commented:
"This quarter we have agreed some significant rental increases, which have mitigated the impact of outward yield movements, against a backdrop of rising interest rates in 2023. We have maintained a well covered dividend over the period and made good progress on specific asset management initiatives. These will enable us to improve earnings as we reposition our portfolio, to ensure it continues to meet evolving occupier needs. As we start 2024, we are already encouraged by portfolio activity."

Financial Highlights

• Net assets of £524.3 million (30 September 2023: £537.1 million).
• NAV/EPRA NTA per share decreased by -2.5% to 96.0 pence (30 September 2023: 98.5 pence).
• Total return for the quarter of -1.6% (30 September 2023: 0.0%).
• LTV of 27.7% (30 September 2023: 27.7%).

Operational Highlights

• Like-for-like portfolio valuation movement of -1.5% over the quarter, with the industrial sector showing most resilience.
• Secured a 33% increase against the previous passing rent from four rent reviews in the industrial and retail sectors, with an annual rent of £2.3 million, which was 5% ahead of the September 2023 ERV or the ERV at the time of the review if prior.
• Renewed / regeared two leases in the industrial sector, with a combined annual rent of £0.1 million, an increase of 101% against the previous passing rent and in line with the September 2023 ERV.
• Completed five lettings in the industrial and office sectors, securing a combined annual rent of £0.5 million, in line with the September 2023 ERV.
• Secured valuable residential permitted development rights at Angel Gate EC1, in order to maximise future disposal proceeds.
• Stable occupancy at 90% (30 September 2023: 90%).

Dividend

• Interim dividend of 0.875 pence per share declared in respect of the period 1 October 2023 to 31 December 2023 and to be paid on 29 February 2024 (1 July 2023 to 30 September 2023: 0.875 pence per share).
• Annualised dividend equivalent to 3.5 pence per share, delivering a dividend yield of 5.3%, based on the share price at close of business on 26 January 2024.
• Dividend cover for the quarter of 108% (30 September 2023: 115%).

[skyship] 05/12/2023 15:50

Well. that seems to be the end of that stupid little jaunt. Hopefully didn't cost shareholders too much in fees!

[skyship] 24/11/2023 11:13

The PCTN approach to UKCM, a company twice their size, was rather bizarre.

They have no way to grow themselves through M&A as they trade on a 32% NAV discount.

[nickrl] 21/11/2023 20:09

Picton have plenty of other suitors to pursue in this sector with much more diverse shareholder base to at least open a dialogue with.

[speedsgh] 21/11/2023 15:13

@Specto - "Assume it would have been a NAV-for-NAV merger"

Pretty much. From the initial announcement on 8 Nov:

"The Board of Picton notes the announcement made by UK Commercial Property REIT Limited ("UKCM") and confirms that it is in discussions with the Board of UKCM regarding a possible all-share merger of the two companies on an EPRA NTA for EPRA NTA basis at a common valuation date..."

[spectoacc] 21/11/2023 08:17

Must be a lot going on we don't know about - Phoenix control UKCM, and are seemingly happy with poor management & mediocre performance.

Assume it would have been a NAV-for-NAV merger, rather than based on relative discounts, so not sure what's not to like. Other than PHNX no longer having the control they have currently.

PCTN reserving options, but it's DOA without PHNX.

[speedsgh] 21/11/2023 07:43

It appears Phoenix weren't keen on the terms of the proposed merger...

Statement re UKCM -

On 8 November 2023, Picton and UK Commercial Property REIT Limited ("UKCM") announced that they were in discussions regarding a possible all-share merger of the two companies on an EPRA NTA for EPRA NTA basis (the "Possible Merger").

The Board of Picton notes today's announcement by UKCM and confirms that Picton has been informed by UKCM that its largest shareholder, Phoenix Life Limited, which controls approximately 43% of UKCM's share capital, does not support the Possible Merger on the terms proposed.

Picton is considering the feedback that it has received from shareholders in Picton and UKCM, following the announcements on 8 November. A further announcement will be made in due course.

In accordance with Rule 2.6(a) of The City Code on Takeovers and Mergers (the "Code"), Picton is required, by no later than 5.00 p.m. (London time) on 6 December 2023 either to announce a firm intention to make an offer for UKCM in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can only be extended with the consent of the Panel on Takeovers and Mergers (the "Takeover Panel") in accordance with Rule 2.6(c) of the Code.

--------------------------

The UKCM announcement is a bit more pointed...

Statement re possible all-share merger -

"...Accordingly, UKCM has informed Picton that it is terminating discussions with Picton regarding the Possible Merger."

[spectoacc] 14/11/2023 12:24

Missed the excitement of the possible merger with UKCM. If it gets shot of UKCM management, all the better.

Suspect that NAV still has a little way to fall, but interesting to see it set out like that. Be interesting to see in real terms too, perhaps ex-divi payments.


Edit - be interesting to see PI's performance inflation-adjusted too. I bet a lot have had decent income but decent capital losses, perhaps at best flat, in the same year the value of money dropped c.15%.

[speedsgh] 14/11/2023 11:29

NAV per share:
98.5p as at 30/9/23
99.4p as at 30/6/23
100.4p as at 31/3/23
102.2p as at 31/12/22
116.7p as at 30/9/22
122.9p as at 30/6/22
120.4p as at 31/3/22
112.8p as at 31/12/21
105.0p as at 30/9/21
99.9p as at 30/6/21
96.8p as at 31/3/21
95.5p as at 31/12/20
92.7p as at 30/9/20
92.2p as at 30/6/20
93.0p as at 31/3/20
95.2p as at 31/12/19
93.6p as at 30/9/19
93.0p as at 30/6/19
92.7p as at 31/3/19
92.5p as at 31/12/18
92.2p as at 30/9/18
91.8p as at 30/6/18
90.4p as at 31/3/18
88.6p as at 31/12/17
85.9p as at 30/9/17
83.8p as at 30/6/17
81.8p as at 31/3/17
80.4p as at 31/12/16
78.5p as at 30/9/16
77.4p as at 30/6/16
77.2p as at 31/3/16
75.7p as at 31/12/15

[speedsgh] 14/11/2023 11:29

Half Year Results -

NAV per share of 99p quoted in the results. AFAICS this is rounded up from 98.5p.

Net assets at 30/9/23: £537,054,000
Shares in issue at 30/9/23 (excluding shares held by the Employee Benefit Trust): 545,224,598 shares

£537,054,000 / 545,224,598 shares = 98.5p per share

[skyship] 08/11/2023 16:16

Presumably PHNX will decide whether a PCTN/UKCM merger should go ahead.

They own c45% of UKCM; so their holding would reduce to c33% of the combined group.

[speedsgh] 08/11/2023 13:10

Minimal share price reaction to the news of a possible all share merger with UKCM...

Statement regarding UKCM -

The Board of Picton notes the announcement made by UK Commercial Property REIT Limited ("UKCM") and confirms that it is in discussions with the Board of UKCM regarding a possible all-share merger of the two companies on an EPRA NTA for EPRA NTA basis at a common valuation date (the "Possible Merger").

Under the terms of Picton's proposal to UKCM, the combined company would be internally managed.

There can be no certainty that an offer will be made. A further announcement will be made in due course.

[feddie] 01/11/2023 08:52

The last RNS sounds like there has been a material value creation overnight at Angel. No quantification available so far.

[speedsgh] 13/10/2023 07:38

Picton Property turns offensive on offices -

[nickrl] 11/10/2023 14:44

Some good asset mgt in here but be useful to state what current contracted rent is as none of them tell you about what tenants have left so is it nett positive or just standing still.

[speedsgh] 11/10/2023 10:53

Portfolio and Asset Management Update -

[speedsgh] 10/8/2023 11:43

Picton Property’s dividend uncovered for first time in 18 years -

[nickrl] 26/7/2023 20:59

Never give much away steady as she goes but yield poor value compared to may others.

[speedsgh] 26/7/2023 09:17

Trading Update and Net Asset Value as at 30 June 2023 -

Dividend Declaration -

~ NAV decline in offices (-3.2%) outweighed the small increases in industrial, retail & leisure. Offices now account for 31.2% of total portfolio.

"Whilst we saw modest valuation increases in the industrial and retail and leisure assets, office assets and particularly those in London were subject to further decline, reflecting the more limited investor demand in that sector currently."

"In the office sector we renewed the leases on a single leased building in Colchester, two small suites in Glasgow and an ancillary residential unit in Covent Garden, securing a combined £0.5 million per annum, which is 6% ahead of the March 2023 ERV. Using permitted development rights, we have secured further changes of use from office to residential on vacant office space at our scheme in Islington. In total permission has now been secured for 28 units (45 bedrooms) and have applications pending on a further 7 units (21 bedrooms). We are also progressing further repositioning initiatives in Cardiff and Hammersmith and updates will be provided as appropriate."

~ Occupancy down slightly at 90%

"Occupancy was 90%, reflecting slightly lower leasing activity over the quarter, combined with a specific asset management led surrender."

~ Quarterly dividend maintained at 0.875pps. Dividend was uncovered for the quarter at 96% (31 March 2023: 111%).

[dendria] 07/7/2023 18:22

Edison note from 4 July 2023: