Picton Property Income Ld Share Discussion Threads

[drewz] 15/8/2013 14:46

I'm out.

It was a fine ride.

[kavnish] 15/8/2013 14:38

This one has run away from itself, however the market can stay frothy for a lot longer than anyone can think.

Certainly not for widows and orphans now , the yield play here is over and quite frankly when REIT's are at premiums to NAV most larger investors just think , why not pop along to the auction and pick up the real thing. Much better return and no management fees.

E.g spend a million on a shop with 15 year lease, will yield 6% . Load up with 50% debt ( still less than PCTN) and your cash yield moves upto 7% plus , why would you then buy this asset at sub 6%

But anyway , it was a lovely ride whilst the market figured it out . Now time to move on and let the retail boys have a play.

[lord gnome] 14/8/2013 07:39

If interest rates are staying low for a few years, a share which still yields the thicker part of 6% and pays out on a quarterly basis is going to be in demand from income seekers. Divi fully covered, asset backed and the economy in recovery mode with property price edging higher. What's not to like? Especially if you loaded up at 36 / 37p. Please excuse me for having a 'smug git' moment.

[mozy123] 13/8/2013 22:40

Makes you see the value there is DSC and APT hey sky? :)

[this_is_me] 13/8/2013 20:49

At this rate we will soon be at a 5 year high. I bought this for income at the start of the year. The capital gain is a nice bonus.

[skinny] 13/8/2013 16:25

These have certainly got away from me for now!

[elmfield] 13/8/2013 16:22

..? Like the old days again?

[skyship] 13/8/2013 16:19

Strewth - 52p on the back of a Winterflood tip in IC online.

Summary following a Leonora Walters article:

"Because of the risks associated with commercial property, in particular liquidity problems, Ms Heyman suggests investors do not put more than around 5 per cent of their assets in, although they could consider a bit more if they have a particular need for income. Mr Port suggests adventurous investors could allocate 7 to 8 per cent.

Ms Heyman says it is very important to look at the type of property a fund holds. She prefers ones diversified across sectors, though likes ones with more exposure to warehouses than shops because as consumers increasingly shop online more is stored in warehouses while high street shops do less well. She also says quality of holdings is important and suggests you invest in more than one fund.

Analysts at broker Winterflood suggest IC Top 100 Fund Picton Property Income (PCTN) which offers a 5.88 per cent yield and trades at relatively modest premium to NAV of 3.85 per cent, in contrast to its peers. Winterflood says the trust's net loan to value ratio of 54.1 per cent makes it riskier than its more lowly geared peers, but that it continues to benefit from relatively inexpensive and long-term debt, and has reasonable headroom against debt covenants."

[cerrito] 24/7/2013 09:37

Good to see reduction-however small-in voids and there seems to be quite a lot of letting activity so we should see a further reduction in voids this quarter.
Looking at the changes in the NAV the very small increase due to retained income and note further decline-albeit very very small-in property valuations.
For me nothing to get too excited about either way.

[kavnish] 15/7/2013 20:22

Looking for the re entry point just had a nibble at glen core

[skyship] 21/6/2013 17:58

Kavnish - great opportunity today to buy DSC again at an attractive level.

I'm surprised they've pulled back 14% from their recent peak; though I have to admit I was also surprised at the extent and rapidity of their recent rise!

IMO DSC is once again the star propco choice as at 182p they are on a 27.5% NAV discount against a very historic 251p NAV. The prospective NAV of 265p+ would place them on a 31% discount with built-in growth to come in 2014.

[kavnish] 21/6/2013 16:12

sold all of the remaining holding today,

lets hope we have a decent correction shortly

[kavnish] 20/6/2013 16:11

Yes don't think we will be waiting too long for a re entry point

[skyship] 20/6/2013 12:50

Kavnish - well-timed sale. I sold too early, but used the cash to add in DSC, so happy with that. PCTN now, from all historic parameters, looks over-valued versus its 49p NAV. The yield is just one valuation parameter; and the only one supporting this level...

[kavnish] 20/6/2013 09:20

believe its too do with the RTS announcement yesterday of stake change.

I used the opportunity to dump the majority of my holding , will wait for a pull back to re invest.

or it good be a badly timed sale on my part with momentum taking the stock to a premium to NAV as as happened at UKCM .

Time will tell, DYOR

[speedsgh] 19/6/2013 14:57

Something happening in the background here or just delayed reaction to last Weds portfolio update? Now yielding just 6.1% at current offer of 49p.

[cerrito] 14/6/2013 21:52

Just caught up with the figures.
Big picture is that today's share price of 44.5 is a good reflection of what for me it should be-although not sure if I can see the share price going much higher.
Clearly things to be concerned about including decline of EPRA NAV from 63p at Dec 10 to March 13's 49p; indeed as the Chairman said the discount narrowed but one could argue that this was just as much a function of falling NAV as well as rising share price
Increase in voids over the year distressing-increase in the year from 8.9% to 12.4% although good to see a slight reduction in last few weeks. Note that the office section is worst hit at 18.7% although they do have a pretty good story to tell here.
On the other hand a good liability structure; good to see in last 6 months operating cash flow minus investments made was greater than dividends paid-something I will focus in on, and of course reduced management charges.
Also they do have a diversified portfolio-ie 35% in industrial and if you look at their retail portfolio Stanfords and Parc Tawe are at different ends of the spectrum. I guess the fact that Stanfords located on one of the world's hottest real estate areas has 74% occupancy does show that we do need caution in looking at the headline voids figures.

[paxman] 12/6/2013 10:24

Hopefully Picton will spend some of their excess income on renovation and reducing debt to below 50% LTV. With a pick up in secondary property asset values of say 5%, which is starting to happen now according to the EG, we could see a nice share price appreciation over the next year to say 50p to 60p.

[langland] 12/6/2013 07:47

Dividend cover should be higher now, of course, based on reduced div of 3p....all other things being equal.

[nil desperandum] 12/6/2013 07:43

The update since year end is very encouraging.

[skinny] 12/6/2013 07:23

This is comforting :-

"Following re-financing the Board undertook a review of its dividend policy and consequently re-based the quarterly dividend to 0.75 pence per share from November 2012, compared to 1 pence per share previously. The total dividends for the year were thus 3.5 pence per share. Dividend cover for the year was 122%, well ahead of the previous period's cover of 82%."

[lord gnome] 12/6/2013 07:17

Solid set of results, operationally and financially. No worries here, good dividend cover and no financing problems. Keep taking the dividends until the market picks up and then we are off to the races. Can't see a negative. Happy to hold.

[this_is_me] 31/5/2013 09:41

No need to sell when the price is still drifting up and they are good value.

[skyship] 31/5/2013 09:36

No longer as cheap as they were, so less to discuss. Now in profit-taking territory as the NAV discount is down to a mere 7%.

Possibly a good switch into CIC - a Tip of the Week in the IC today; and at 122p they are still on a 27% NAV discount.