We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 60.30 | 60.40 | 60.80 | 61.60 | 60.30 | 61.40 | 946,907 | 16:35:24 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Real Estate Investment Trust | 51.82M | -89.53M | -0.1642 | -3.68 | 329.32M |
Hot Features
Premium
TIDMPCTN
13 November 2018
PICTON PROPERTY INCOME LIMITED
("Picton", the "Company" or the "Group")
LEI: 213800RYE59K9CKR4497
Half Year Results
Picton announces its half year results for the period to 30 September 2018.
Growth in NAV and EPRA earnings
* Profit after tax of GBP18.9 million
* Total return of 3.9%
* Increase in EPRA earnings per share of 9.5% to 2.2p
* Increase in EPRA NAV per share of 2.0%, to 92 pence per share
* Dividends paid of GBP9.4 million or 1.75 pence per share
* Dividend cover of 125%
Corporate Highlights
* Converted to a UK REIT on 1 October
* Successfully changed listing status to commercial company, from investment
company
* Repaid GBP33.7 million of fixed debt using cash reserves and lower cost
revolving credit facility
* Gearing reduced to 25.5% and weighted average interest rate reduced from
4.1% to 4.0%
* Net saving of GBP1.1 million in annual finance costs
* Created greater operational flexibility by restructuring one of the
principal debt facilities
Portfolio outperformance
* Total property return of 4.4%, outperforming the MSCI IPD Quarterly
Benchmark of 3.2%
* Total property return and income return outperformance ahead of MSCI IPD
over 1, 3, 5 and 10 years
* Like-for-like valuation increase of 1.5%, driven by industrial and office
sectors
* Two disposals for GBP11.8 million, 8.4% ahead of March 2018 valuation
* Occupancy at 94%, ahead of the MSCI IPD Quarterly Digest of 92%
Balance Sheet 30 Sept 2018 31 March 2018
Property valuation GBP683.0m GBP683.8m
Net assets GBP497.1m GBP487.4m
EPRA NAV per Share 92p 90p
Income Statement Six months to Six months to
30 Sept 2018 30 Sept 2017
Profit after tax GBP18.9m GBP30.7m
EPRA earnings GBP11.8m GBP10.8m
Earnings per share 3.5p 5.7p
EPRA earnings per share 2.2p 2.0p
Total return 3.9% 7.1%
Total shareholder return 6.4% 3.9%
Total dividend per share 1.75p 1.70p
Dividend cover 125% 118%
Picton Chairman, Nicholas Thompson, commented:
"Picton aims to be one of the best performing diversified UK-listed property
companies and is therefore delighted to have delivered yet another solid set of
results during the first half of the year, generating a 4% total return and an
increase in EPRA earnings. With the resounding support of our shareholders, we
also successfully completed the transition to become a UK REIT and other
associated changes, realigning the Board in the process."
Michael Morris, Chief Executive of Picton, commented:
"We continue to manage the portfolio and our occupiers, with a view to
enhancing our income and capital position through the investment cycle. Our
current performance can be directly attributed to the work we've put into
reshaping the property portfolio, and separately having considerably
strengthened the Company's balance sheet over the past few years."
This announcement contains inside information.
For further information:
Tavistock
Jeremy Carey/James Verstringhe, 020 7920 3150,
james.verstringhe@tavistock.co.uk
Picton
Michael Morris, 020 7011 9980, michael.morris@picton.co.uk
Note to Editors
Picton is a UK REIT established in 2005. It owns and actively manages a GBP683
million diversified UK commercial property portfolio, invested across 49 assets
and with around 350 occupiers (as at 30 September 2018). Through an occupier
focused, opportunity led approach to asset management, Picton aims to be one of
the consistently best performing diversified UK focused property companies
listed on the main market of the London Stock Exchange.
www.picton.co.uk
CHAIRMAN'S REPORT
I am pleased to report another set of solid interim results from Picton for the
six months to September 2018, with a 4% total return over the period.
This has been an important time for the Company, during which we received
overwhelming shareholder support to become a UK REIT and also change our
listing status to that of a commercial company, from an investment company.
In spite of the economic and political uncertainty surrounding the Brexit
negotiations, the strength of our business model and the work we have put into
reshaping the property portfolio over the past few years have contributed to
our continued robust performance.
Results and Dividends
Picton delivered a 2% increase in net assets of GBP9.7 million over the period to
GBP497.1 million or 92 pence per share. Our earnings per share was 3.5 pence.
At a property level, so excluding the impact of debt and corporate level costs,
the portfolio, as measured by MSCI IPD, delivered a total return of 4.4%, 1.2%
ahead of the MSCI IPD Quarterly Benchmark. The Company has now outperformed the
Benchmark on a total return and income return basis over 1, 3, 5 and 10 years.
During the period we paid dividends of 1.75 pence per share, an increase of 3%
compared to a year ago. Our last dividend to be paid as an investment company
will be later this month. From February next year we will continue to pay
dividends on the usual quarterly basis but primarily in the form of Property
Income Distributions (PIDs). We will review our dividend policy in light of the
minimum REIT distribution requirements and prevailing market conditions ahead
of this time.
Volatility in the listed real estate equity market has contributed
significantly to the fact that the share price does not currently fully reflect
the underlying net asset value of the Company, but this is not uncommon.
Strategic Priorities
During the period, we remained focused on our strategic priorities to ensure we
continue to deliver long-term value for shareholders. As we have stated over
the past few years, Picton aims to be one of the consistently best performing
diversified UK focused property companies listed on the London Stock Exchange.
By repaying some debt in July, we have reduced financing costs and secured
additional changes to our loan arrangements which will translate into future
operational flexibility. We have de-risked the capital structure, undertaken a
small number of disposals, which have been accretive to net asset value, and
continue to improve the effectiveness and efficiency of our business model
through our REIT conversion and associated changes.
We expect to see the savings from becoming a REIT start to flow through in the
next six months. We have also created additional operational efficiencies by
migrating management and control to the UK and by streamlining our reporting
process, removing the duplication of net asset value statements overlapping
with annual and half yearly results.
Property Strategy
We have a good quality portfolio of assets that continues to outperform the
MSCI IPD Quarterly Benchmark.
We have been overweight in the outperforming industrial, warehouse and
logistics sector, whilst at the same time being underweight in the far more
challenging and underperforming retail sector. This is more fully detailed
below. Despite a small reduction over the period, occupancy remains high and
the Board is encouraged by initiatives both ongoing and planned for assets
within the portfolio.
We continue to work with our occupiers to provide space that meets their needs
and, through a process of upgrading space, help mitigate any risks to our
cashflow. We hope to be able to report on several specific asset management
initiatives before the year end.
Corporate Structure and Board Changes
The corporate changes referred to above took place following the period end and
came into effect on 1 October, when the UKLA confirmed the listing change and
we applied to HMRC to enter the UK REIT regime. In advance of this, we have
focused on succession planning and repositioning the Board recognising our new
onshore arrangements. During the period, Mark Batten became Chair of the Audit
and Risk Committee and, following a selection process, Maria Bentley was
appointed to the Board and has become Chair of the Remuneration Committee.
The Company no longer has an investment management subsidiary. Michael Morris
has now become Chief Executive of the Group and Andrew Dewhirst has joined the
Board as the Group's Finance Director. I wish to welcome my new colleagues to
the Board and equally thank both Vic Holmes and Robert Sinclair for all they
have done, not only during their many years of service, but especially in the
last six months, to make this a successful and effective transition.
As well as reflecting the new corporate structure, the Board believes that
these changes will bring different perspectives to its deliberations. We are
mindful of the need to continuously evaluate the composition of the Board
whilst also ensuring that the knowledge and experience of the present
incumbents can be properly transferred to new Directors over a reasonable
timeframe. The changes made will help ensure that the Company is well placed
for the changes in the UK Corporate Governance code which are effective in 2019
as well as continuing to demonstrate best practice in this area.
I would also like to thank shareholders for their support in passing all the
resolutions at the most recent AGM, the last to be held in Guernsey.
Outlook
Clearly the coming months are important in terms of the Brexit negotiations and
our future relationship with the EU and more widely in terms of global trade.
Despite the recent uncertainty, the UK economy has been reasonably resilient,
as have the fortunes of the property market and we remain cautiously
optimistic; however, we believe it is right to be prudent in the short term
until we have greater clarity. For many of our occupiers it appears that it is
business as usual and, as such, we will continue working towards meeting our
strategic aims and deliver value for our shareholders.
Nicholas Thompson
Chairman
12 November 2018
BUSINESS OVERVIEW
Economic Backdrop
As the UK government attempts to secure an exit agreement from the European
Union in March, the economy has proven somewhat resilient in the face of this
uncertainty. The Office of National Statistics estimated GDP growth for the six
months to September at 1.0%. By comparison, GDP for the six months to September
2017 was estimated at 0.7%. The IHS Markit/CIPS UK PMI figures saw
Construction, Manufacturing and Services all showing marginal signs of
improvement for the third quarter of 2018.
The Bank of England increased the base rate for the second time this year by
0.25% to 0.75% in August. It is not expected that there will be any further
increase until after the Brexit date in March 2019.
Inflation ticked up higher than expected in August but fell back in September,
with CPI and RPI now standing at 2.4% and 3.3% respectively. The CPI inflation
target from the Monetary Policy Committee remains at 2.0%.
Between June 2018 and August 2018, the unemployment rate stood at 4.0%, the
lowest level recorded since 1975. In nominal terms, average weekly earnings
increased by 3.1% excluding bonuses and 2.7% including bonuses compared with a
year earlier. Despite unemployment continuing to trend at record low levels and
an increase in average earnings, consumer confidence remains fragile, as
increasing inflation is squeezing any real wage growth. Retail sales, which
includes online purchases, continued an upward trend in September, albeit from
a low base at the start of the year, and September saw the slowest month for
retail sales growth since April. The increasingly challenging operating
environment for retailers has seen some large high street names undertake store
closures and Company Voluntary Arrangements (CVAs) during 2018.
Looking ahead, the high level of political uncertainty, higher than expected
inflation, weak sterling and generally subdued levels of production are
reflected in the ONS forecast of 1.3% GDP for the year ending December 2018 -
the lowest in the ten years since the global financial crisis - recovering only
marginally to 1.6% for 2019.
UK Property Market
The UK commercial property market remains broadly robust, delivering a positive
total return overall for the six months to September. Notwithstanding this,
there were widening variations in performance at sector level, with the
challenging trading environment and impact of retail failures continuing to
negatively impact the retail sector.
According to Property Data, total investment for the six months to September
2018 was GBP28.4 billion, a decrease of 8.6% compared to GBP31.1 billion in the six
months to March 2018. Almost half of total investment in the period was from
overseas investors.
The MSCI IPD Monthly Index shows a total return for All Property for the six
months to September 2018 of 3.9%, with an income return of 2.6%. Capital growth
for the six months to September 2018 was lower at 1.3% compared to 3.0% for the
six months to March 2018. Rental growth was positive at 0.4% for the six months
to September 2018, lower than the 1.0% for the six months to March 2018.
Initial yields have moved from 5.0% in March 2018 to 4.9% in September 2018.
Industrial remained the best performing sector for the six months to September
with total returns of 8.8%, 4.9% above the All Property average. For the same
period, office and retail returns were 3.5% and 0.6%, respectively.
The MSCI IPD Quarterly Digest recorded an occupancy rate of 92.4% in September
2018 (March 2018: 92.2%).
In the industrial sector, returns comprised 2.4% income and 6.3% capital
growth. Rental growth was 2.0%, lower than the 2.2% for the six months to March
2018. In terms of capital growth by segment, growth ranged from 3.1% in North &
Scotland to 8.7% in Inner South East. Similarly, rental growth ranged from 0.9%
in South West to 2.8% for Outer South East.
In the office sector, returns comprised 2.3% income and 1.1% capital growth.
Rental growth was 0.7%. In terms of capital growth by segment, growth ranged
from 0.3% in London Mid Town & West End to 4.0% in South West. Similarly,
rental growth ranged from
-0.1% for Scotland to 2.0% for South West.
In the retail sector, returns comprised 2.9% income and -2.3% capital growth.
Rental growth was -1.0%. In terms of capital growth by segment, growth ranged
from -9.1% for Standard Retail Yorkshire & Humberside to 0.8% for Standard
Retail Central London. Similarly, rental growth ranged from -4.2% for Standard
Retail East Midlands to 0.6% for Standard Retail Central London.
Valuation
The portfolio valuation increased on a like-for-like basis by 1.5% over the
period to September 2018. The industrial portfolio increased by 6.0% and the
office portfolio by 0.3%, while the retail and leisure portfolio declined by
4.9%, primarily reflecting the negative impact of retail failures in the wider
market.
For the six months to September, the portfolio returned 4.4%, outperforming the
MSCI IPD Quarterly Benchmark which delivered 3.2%. The income return was 2.9%,
0.4% ahead of the Benchmark.
Sector Portfolio Sept 18 Like for like
Weightings Valuation change
Industrial 43.7% GBP298.8m 6.0%
South East 30.6% 6.9%
Rest of UK 13.1% 4.0%
Offices 34.5% GBP235.4m 0.3%
London City and West 4.1% 1.2%
End
Inner and Outer London 8.3% -2.5%
South East 11.0% 0.2%
Rest of UK 11.1% 2.4%
Retail and Leisure 21.8% GBP148.8m -4.9%
Retail warehouse 8.6% -9.2%
High Street - Rest of 5.6% -9.2%
UK
High Street - South 5.7% 6.3%
East
Leisure 1.9% -1.6%
Total 100% GBP683.0m 1.5%
Our overweight position to the better performing sectors combined with active
management and leasing activity contributed to the portfolio's outperformance.
Passing rent declined marginally on a like-for-like basis by 0.4%, with the
positive letting activity being offset by active management initiatives and the
New Look and Poundworld insolvencies. Overall, like-for-like ERV declined by
0.6%, with the positive growth in the industrial portfolio being offset by the
negative story in the retail portfolio where we are seeing considerable
oversupply depressing rental values.
Top Ten Assets
The largest assets in the portfolio as at 30 September 2018, ranked by capital
value, represent 50% of the total portfolio valuation and are detailed below:
Sector Tenure Approximate Appraised
Area (sq ft) Value
Parkbury Industrial Estate, Radlett, Industrial Freehold 336,700 >GBP45m
Herts.
River Way Industrial Estate, Harlow, Industrial Freehold 454,800 >GBP45m
Essex
Stanford House, Long Acre, London Retail Freehold 19,600 GBP35m-GBP45m
WC2
Angel Gate, City Road, London EC1 Office Freehold 64,500 GBP35m-GBP45m
50 Farringdon Road, London EC1 Office Leasehold 31,000 GBP25m-GBP35m
Tower Wharf, Cheese Lane, Bristol Office Freehold 70,800 GBP25m-GBP35m
Belkin Unit, Shipton Way, Rushden, Industrial Leasehold 312,900 GBP15m-GBP25m
Northants.
30 & 50 Pembroke Court, Chatham, Office Leasehold 86,300 GBP15m-GBP25m
Kent
Colchester Business Park, Office Leasehold 150,700 GBP15m-GBP25m
Colchester, Essex
Lyon Business Park, Barking Industrial Freehold 99,400 GBP15m-GBP25m
A full portfolio listing is available on the Company's website:
www.picton.co.uk
Top Ten Occupiers
The top ten occupiers, based as a percentage of annualised contracted rental
income, after lease incentives, as at 30 September 2018, are summarised below:
Occupier %
1 Belkin Limited 4.0
2 Public Sector 3.9
3 DHL Supply Chain Limited 3.5
4 B&Q PLC 2.9
5 The Random House Group Limited 2.8
6 Snorkel Europe Limited 2.6
7 Portal Chatham LLP 2.1
8 Edward Stanford Limited 1.8
9 TK Maxx 1.7
10 XMA Limited 1.6
26.9
Portfolio and Asset Management
Investment Activity
We have further rebalanced the office portfolio with the sales of Merchants
House, Chester and 800 Pavilion Drive, Northampton for a combined GBP11.8
million, 8.4% ahead of the March valuation. The Merchants House sale was due to
concern of a potential Compulsory Purchase Order being put in place and at 800 Pavilion Drive the occupier had not actioned their break giving us the opportunity to sell the building for a premium to valuation and de-risk a future potential void in a weak occupational market. Occupancy Over the period, we secured GBP0.6 million per annum of additional income though new lettings, including securing an occupier for the final suite at 50 Farringdon Road in London as detailed below. At the period end we have space under offer with a combined rent of GBP0.8 million per annum. As anticipated, there was a reduction in occupancy over the period from 96% to 94%. The decrease, which we expect to be short term, reflected active management at Stanford House in Covent Garden where we have started the process of securing vacant possession of the whole building by 2019. This unlocks options for either the re-letting of the whole of this flagship Grade II listed 20,000 sq ft building, post a refurbishment, or potentially a sale to an owner occupier or a developer looking to take advantage of the office/residential planning consent on the upper floors. Industrial Portfolio The industrial portfolio has performed well over the half-year. Tight supply, limited development and continued demand has resulted in further rental growth, especially in the South East, which we are capturing through asset management activity. Capital values increased by 6.0% on a like-for-like basis, the rent roll increased by 3.8% to GBP16.2 million per annum and the ERV grew by 2.3% to GBP 18.4 million on a like-for-like basis. The portfolio has a weighted average lease length of 4.5 years to the first lease event. The UK wide distribution warehouse assets total 1.3 million sq ft in six fully income producing units, 74% of which are located in the Midlands, let to occupiers including Belkin, DHL and The Random House Group. The multi-let estates, of which 95% by value are located in the South East, total 1.4 million sq ft and are 99% let. Two units are vacant, one of which is under offer at an increased rent. Five multi-let units were let during the period securing GBP0.22 million per annum, 6% ahead of ERV. The most notable transaction was where we surrendered a lease of a unit at our largest estate securing a full dilapidations payment. We then re-let the unit in less than two months in its existing condition securing a minimum five-year term at an initial rent of GBP0.1 million per annum which is 34% ahead of the previous passing rent and 13% ahead of ERV. The letting sets new rental evidence on the estate and has had a positive impact on income and valuation. We have secured GBP0.2 million of additional income from two rent reviews settled over the period, 8% ahead of ERV. Six occupiers have been retained at renewal securing GBP0.36 million per annum, 1% above ERV. The industrial portfolio currently has GBP2.2 million of reversionary income potential and with high occupancy we can look to capture this through active management and lease events as demonstrated above. Looking to the end of 2019, we have 29 lease events with an ERV of GBP2.9 million per annum, GBP0.4 million above the current passing rent. Office Portfolio On a like-for-like basis capital values increased by 0.3% and the rent roll increased by 1.9% to GBP14.4 million per annum. The portfolio has a weighted average lease length of 3.7 years to the first lease event. The office portfolio ERV was flat over the period on a like-for-like basis with the regional assets seeing growth, which was offset by London. We have over the past two years rebalanced the office portfolio by selling out of central London and investing into the regions. 64% of the office portfolio is now outside Greater London, where we are seeing stronger occupational demand. The office portfolio is 91% let and the most notable transaction was at 50 Farringdon Road. The final suite was let to an existing occupier for GBP0.21 million per annum, 5% ahead of ERV and the building is now fully let. We agreed with the same occupier to move the break option in their existing lease, securing five years term certain on both suites. The transaction is a good example of our occupier focused approach, which enabled us to work with our existing occupier and retain them in the building. The short-term opportunities are the letting of 180 West George Street, Glasgow, where we have one suite under offer, and the refurbishment next year of Longcross Court in Cardiff where we are creating best in class space in central Cardiff. The combined ERV of voids at these two properties is GBP1 million. These two properties account for 58% of the total office void. The regional office assets have performed well due to continued demand for space and the potential for rents to increase from relatively low levels which we have seen in, for example, Colchester where there has been 15% rental growth in the last 12 months. In London, the occupational market is active but remains more subdued and we have reduced our ERVs at Angel Gate in Islington to take account of this. The portfolio has GBP3.7 million of reversionary income potential and up to the end of 2019 the office portfolio has 38 lease events with an ERV of GBP3.4 million per annum, GBP0.3 million above the current passing rent. Retail and Leisure Portfolio It has undoubtedly been a challenging six months in the retail property market and our portfolio has not been immune from the impact of retailer failures. Capital values reduced by 4.9% principally driven by the retail warehouse sector as detailed below. We have seen a decline of 9.5% in respect of the retail rent roll. Of this 47% related to the active management initiatives of the upper floors at Stanford House, our flagship store in Covent Garden, where we are looking to secure vacant possession in early 2019, and 37% related to retail failures with the remainder being lease events. The portfolio has been affected by the New Look CVA, where we are getting a retail unit back in Peterborough, which is under offer, and the Homebase CVA which will mean we will get a unit back in Swansea, in which we already have strong interest. On the same park we will get a unit back following the Poundworld administration. The passing rent of the retail portfolio is GBP9.7 million per annum. It has a weighted average lease length of 7.6 years, is 89% let and has GBP0.5 million of reversionary income potential. At the end of the period we had new lettings under offer with a combined annual rent of GBP0.4 million per annum. The most significant void relates to a retail warehouse unit in Bury, Greater Manchester, where we are working through our active management strategy and have occupier interest. We consider our exposure to the sector to be robust with future upside on the retail warehouse parks and at Stanford House in Covent Garden in particular. Up to the end of 2019 the retail and leisure portfolio has only 15 lease events with an ERV of GBP2.6 million per annum, GBP0.1 million above the current passing rent. Looking Ahead The portfolio has GBP6.4 million of reversionary income potential, primarily in the industrial and office sectors. GBP2.9 million of the reversion is from lettings, with the remainder from lease renewals, rent reviews and contracted uplifts. The supply and demand imbalance, combined with a lack of development, will continue to drive rental growth in the industrial sector, while demand remains strong in the regional office market with incentives moving out in London. The retail sector is going though a structural change, however this should provide opportunities such as we are seeing in our portfolio. Financial Overview Income Statement For the six months to 30 September, our total profit was GBP18.9 million, representing earnings per share of 3.5 pence. Within this, our income profit, comprising the revenue from the property portfolio, less direct property costs, management and other operating costs, and finance costs, was GBP11.8 million. For the previous half year, to 30 September 2017, the comparative figure was GBP10.8 million, so we have achieved a 9% increase in income profit. The capital profit, at GBP7.1 million for the half year, is lower than in 2017 and this reflects the more muted conditions in the commercial property market generally. However, with a portfolio capital return of 1.5% for the period, we have continued to outperform the MSCI IPD Quarterly Benchmark. The capital result has also been impacted by the early loan repayment of a tranche of the Canada Life facility. We repaid GBP33.7 million in July, which was originally scheduled for repayment in July 2022. As a result, we incurred a one-off prepayment fee of GBP3.2 million. Going forward there will be a net saving of GBP1.1 million annually due to lower interest costs. We have also agreed changes to the Canada Life facility which provide us with greater flexibility going forward, including the ability to utilise disposal proceeds throughout the Group, rather than being subject to lender security. The net property income for the period, at GBP20.2 million, is some 8% higher than the previous period. This partly arises from the impact of the acquisition of Tower Wharf in Bristol and subsequent lettings there, but also from lower void costs as a high occupancy level has been maintained, albeit this dipped at the end of the period. Operating costs for the period were GBP3.1 million, comprising GBP2.0 million of management expenses and GBP1.1 million of other corporate costs, which includes exceptional costs of GBP0.3 million associated with REIT conversion and the listing change. During the period we paid out two interim dividends, each of 0.875 pence per share, equal to GBP9.4 million in total. Dividend cover for the six months was 125%. Balance Sheet Overall the net assets of the Group rose by GBP9.7 million over the period, to GBP
497.1 million, an increase of 2.0%.
The appraised value of the property portfolio stood at GBP683 million at 30
September. We made two disposals during the period, for net proceeds of GBP11.8
million, ahead of their preceding valuations. These proceeds, along with
existing cash reserves, were utilised to repay borrowings, as mentioned above.
Borrowings have reduced to GBP193.4 million, following the early Canada Life
repayment, although this was partly funded by a drawdown under one of the
revolving credit facilities, of GBP14.5 million. The weighted average debt
maturity is now 10.3 years and the weighted average interest rate is 4.0%.
Borrowings now represents a loan-to-value ratio of 25.5%, and we have the
option to reduce this further by repaying the drawn balances of our revolving
credit facilities, once selected asset sales have been made.
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 2018. 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 Report and Business Overview (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 Report 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
Mark Batten
Director
12 November 2018
INDEPENT REVIEW REPORT TO PICTON PROPERTY INCOME LIMITED
CONCLUSION
We have been engaged by Picton Property Income Limited (the "Company") to
review the condensed set of financial statements in the Half Year Report for
the six months ended 30 September 2018 of the Company and its subsidiaries
(together the "Group") which comprises the Condensed Consolidated Statement of
Comprehensive Income, Condensed Consolidated Statement of Changes in Equity,
Condensed Consolidated Balance Sheet, Condensed Consolidated Statement of Cash
Flows and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the Half Year Report
for the six months ended 30 September 2018 is not prepared, in all material
respects, in accordance with IAS 34 Interim Financial Reporting and the
Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial
Conduct Authority ("the UK FCA").
SCOPE OF REVIEW
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures.
We read the other information contained in the Half Year Report and consider
whether it contains any apparent misstatements or material inconsistencies with
the information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
DIRECTORS' RESPONSIBILITIES
The Half Year Report is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the Half Year Report in
accordance with the DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards. The
directors are responsible for preparing the condensed set of financial
statements included in the Half Year Report in accordance with IAS 34.
OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the Half Year Report based on our review.
THE PURPOSE OF OUR REVIEW WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES
This report is made solely to the Company in accordance with the terms of our
engagement letter to assist the Company in meeting the requirements of the DTR
of the UK FCA. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work, for
this report, or for the conclusions we have reached.
Deborah Smith
For and on behalf of KPMG Channel Islands Limited
Chartered Accountants, Guernsey
12 November 2018
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEARED 30 SEPTEMBER 2018
Note Income Capital 6 months 6 months Year
GBP000 GBP000 ended ended ended
30 Sept 30 Sept 31 March
2018 2017 2018
unaudited unaudited audited
Total Total Total
GBP000 GBP000 GBP000
Income
Revenue from properties 3 24,537 - 24,537 24,323 48,782
Property expenses 4 (4,297) - (4,297) (5,605) (10,335)
Net property income 20,240 - 20,240 18,718 38,447
Expenses
Management expenses (2,006) - (2,006) (1,810) (3,652)
Other operating expenses (1,062) - (1,062) (924) (1,914)
Total operating expenses (3,068) - (3,068) (2,734) (5,566)
Operating profit before movement 17,172 - 17,172 15,984 32,881
on investments
Investments
Profit on disposal of investment 9 - 379 379 2,488 2,623
properties
Investment property valuation 9 - 9,961 9,961 17,362 38,920
movements
Total profit on investments - 10,340 10,340 19,850 41,543
Operating profit 17,172 10,340 27,512 35,834 74,424
Financing
Interest receivable 16 - 16 10 35
Interest payable (4,936) - (4,936) (4,904) (9,782)
Debt prepayment fees 10 - (3,245) (3,245) - -
Total finance costs (4,920) (3,245) (8,165) (4,894) (9,747)
Profit before tax 12,252 7,095 19,347 30,940 64,677
Tax (445) - (445) (286) (509)
Profit and total comprehensive 11,807 7,095 18,902 30,654 64,168
income for the period
Earnings per share
Basic and diluted 7 2.2p 1.3p 3.5p 5.7p 11.9p
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 2018
Note Share Other Retained Total
Capital Reserves Earnings GBP000
GBP000 GBP000 GBP000
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
Profit for the period - - 33,514 33,514
Dividends paid 6 - - (9,306) (9,306)
Share based awards - 284 - 284
Purchase of shares held in trust - (893) - (893)
Balance as at 31 March 2018 157,449 (251) 330,157 487,355
Profit for the period - - 18,902 18,902
Dividends paid 6 - - (9,432) (9,432)
Share based awards - 319 - 319
Balance as at 30 September 2018 157,449 68 339,627 497,144
Notes 1 to 15 form part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2018
Note 30 30 31 March
September September 2018
2018 2017 audited
unaudited unaudited GBP000
GBP000 GBP000
Non-current assets
Investment properties 9 673,870 652,104 670,674
Tangible assets 25 12 5
Total non-current assets 673,895 652,116 670,679
Current assets
Investment properties held for sale - - 3,850
Accounts receivable 16,420 15,743 15,273
Cash and cash equivalents 20,130 30,071 31,510
Total current assets 36,550 45,814 50,633
Total assets 710,445 697,930 721,312
Current liabilities
Accounts payable and accruals (20,113) (19,421) (21,471)
Loans and borrowings 10 (808) (615) (712)
Obligations under finance leases (109) (109) (109)
Total current liabilities (21,030) (20,145) (22,292)
Non-current liabilities
Loans and borrowings 10 (190,559) (212,315) (209,952)
Obligations under finance leases (1,712) (1,714) (1,713)
Total non-current liabilities (192,271) (214,029) (211,665)
Total liabilities (213,301) (234,174) (233,957)
Net assets 497,144 463,756 487,355
Equity
Share capital 11 157,449 157,449 157,449
Retained earnings 339,627 305,949 330,157
Other reserves 68 358 (251)
Total equity 497,144 463,756 487,355
Net asset value per share 13 92p 86p 90p
These condensed consolidated financial statements were approved by the Board of
Directors on 12 November 2018 and signed on its behalf by:
Mark Batten
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 2018
Note 6 months 6 months Year
ended ended ended
30 30 31 March
September September 2018
2018 2017 audited
unaudited unaudited GBP000
GBP000 GBP000
Operating activities
Operating profit 27,512 35,834 74,424
Adjustments for non-cash items 12 (10,018) (19,480) (40,889)
Interest received 16 10 35
Interest paid (4,603) (4,532) (9,160)
Tax paid (80) (202) (328)
(Increase)/ decrease in accounts receivables (1,715) (202) 267
(Decrease)/ increase in payable and accruals (1,566) (709) 1,286
Cash inflows from operating activities 9,546 10,719 25,635
Investing activities
Acquisition of investment properties 9 - (24,543)
(24,543)
Capital expenditure on investment properties 9 (275) (2,266) (3,553)
Disposal of investment properties 11,837 9,725 10,285
Purchase of tangible assets (23) (7) -
Cash inflows/(outflows) from investing activities 11,539 (17,091) (17,811)
Financing activities
Borrowings repaid (34,288) (546) (3,104)
Borrowings drawn 14,500 12,500
12,500
Debt prepayment fees (3,245) - -
Financing costs - (213) (213)
Purchase of shares held in trust - - (893)
Dividends paid 6 (9,432) (9,181) (18,487)
Cash (outflows)/inflows from financing activities (32,465) 2,560 (10,197)
Net (decrease)/increase in cash and cash equivalents (11,380) (3,812) (2,373)
Cash and cash equivalents at beginning of period/ 31,510 33,883 33,883
year
Cash and cash equivalents at end of period/year 20,130 30,071 31,510
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 2018
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 2018, with unaudited comparatives for the period from 1 April to 30
September 2017. Comparatives are also provided from the audited financial
statements for the year ended 31 March 2018. Certain comparative amounts in the
condensed consolidated balance sheet have been reclassified to conform with the
current year's presentation. The reclassification does not affect the
previously reported profit and total comprehensive income or net asset value.
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 2018.
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 2018.
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 2018 refer
to new Standards and Interpretations none of which has a material impact on
these financial statements. There have been no significant changes to
management judgements and estimates as disclosed in the last annual report and
financial statements for the year ended 31 March 2018.
3. REVENUE FROM PROPERTIES
6 months 6 months Year
ended ended ended
30 30 31 March
September September 2018
2018 2017 GBP000
GBP000 GBP000
Rents receivable (adjusted for lease incentives) 20,825 20,366 41,412
Surrender premiums 342 133 200
Dilapidation receipts 230 689 1,111
Other income 79 134 132
Service charge income 3,061 3,001 5,927
24,537 24,323 48,782
Rents receivable includes lease incentives recognised of GBP0.5 million (30
September 2017: GBP0.1 million, 31 March 2018: GBP0.2 million).
4. PROPERTY EXPENSES
6 months 6 months Year
ended ended ended
30 30 31 March
September September 2018
2018 2017 GBP000
GBP000 GBP000
Property operating costs 848 1,704 2,578
Property void costs 388 900 1,830
Recoverable service charge costs 3,061 3,001 5,927
4,297 5,605 10,335
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 49 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
30 30 31 March
September September 2018
2018 2017 GBP000
GBP000 GBP000
Interim dividend for the period ended 31 March 2017: 0.85 - 4,590 4,590
pence
Interim dividend for the period ended 30 June 2017: 0.85 - 4,591 4,591
pence
Interim dividend for the period ended 30 September 2017: 0.85 - - 4,590
pence
Interim dividend for the period ended 31 December 2017: 0.875 - - 4,716
pence
Interim dividend for the period ended 31 March 2018: 0.875 4,716 - -
pence
Interim dividend for the period ended 30 June 2018: 0.875 4,716 - -
pence
9,432 9,181 18,487
The interim dividend of 0.875 pence per ordinary share in respect of the period
ended 30 September 2018 has not been recognised as a liability as it was
declared after the period end. A dividend of GBP4,716,000 will be paid on 30
November 2018.
7. EARNINGS PER SHARE
Basic and diluted 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,
excluding the average number of shares held by the Employee Benefit Trust. The
diluted number of shares also reflects the contingent shares to be issued under
the Long Term Incentive Plan.
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 2018
September September
2018 2017
Net profit attributable to ordinary shareholders of the 18,902 30,654 64,168
Company from continuing operations (GBP000)
Weighted average number of ordinary shares for basic profit/ 538,983,660 540,053,660 539,734,126
(loss) per share
Weighted average number of ordinary shares for diluted profit 541,093,417 541,084,131 539,738,613
/(loss) per share
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 2018.
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 2018.
9. INVESTMENT PROPERTIES
6 months 6 months Year
ended ended ended
30 30 31 March
September September 2018
2018 2017 GBP000
GBP000 GBP000
Fair value at start of period/year *674,524 615,170 615,170
Acquisitions - 24,543 24,543
Capital expenditure on investment properties 275 2,266 3,553
Disposals (11,269) (9,725) (10,285)
Realised gains on disposal 406 2,520 2,655
Realised losses on disposal (27) (32) (32)
Unrealised gains on investment properties 22,558 25,416 49,664
Unrealised losses on investment properties (12,597) (8,054) (10,744)
Transfer to assets classified as held for sale - - (3,850)
Fair value at the end of the period/year 673,870 652,104 670,674
Historic cost at the end of the period/year 646,759 659,722 660,263
*Includes assets classified as held for sale at year end.
The fair value of investment properties reconciles to the appraised value as
follows:
30 30 31 March
September September 2018
2018 2017 GBP000
GBP000 GBP000
Appraised value 682,950 661,415 683,800
Valuation of assets held under finance leases 1,623 1,660 1,657
Lease incentives held as debtors (10,703) (10,971) (10,933)
Assets classified as held for sale - - (3,850)
Fair value at the end of the period/year 673,870 652,104 670,674
As at 30 September 2018, 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 2018 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 2018.
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 2018
2018 2017 GBP000
GBP000 GBP000
Current
Aviva facility - 1,178 1,128 1,153
Capitalised finance costs - (370) (513) (441)
808 615 712
Non-current
Santander revolving credit facility 18 June 2021 10,500 12,500 10,500
Santander revolving credit facility 20 June 2021 14,500 - -
Canada Life facility - - 33,718 33,718
Canada Life facility 24 July 2027 80,000 80,000 80,000
Aviva facility 24 July 2032 88,074 89,252 88,669
Capitalised finance costs - (2,515) (3,155) (2,935)
190,559 212,315 209,952
191,367 212,930 210,664
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 originally 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.
On 20 July 2018 the Group repaid GBP33.7 million of debt under the Canada Life
facility incurring an early repayment charge of GBP3.2 million.
The fair value of the secured loan facilities at 30 September 2018, estimated
as the present value of future cash flows discounted at the market rate of
interest at that date, was GBP185.9 million (30 September 2017: GBP223.2 million,
31 March 2018: GBP235.1 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 which expire in June 2021. In total the Group has GBP51.0
million available under both facilities, of which GBP25.0 million has been drawn.
The weighted average interest rate on the Group's borrowings as at 30 September
2018 was 4.0% (30 September 2017: 4.1%, 31 March 2018: 4.1%).
11. SHARE CAPITAL AND OTHER RESERVES
The Company has 540,053,660 ordinary shares in issue of no par value (30
September 2017: 540,053,660, 31 March 2018: 540,053,660).
The balance on the Company's share premium account as at 30 September 2018 was
GBP157,449,000 (30 September 2017: GBP157,449,000, 31 March 2018: GBP157,449,000).
30 30 31 March
September September 2018
2018 2017
Ordinary share capital 540,053,660 540,053,660 540,053,660
Number of shares held in Employee Benefit Trust (1,070,000) - (1,070,000)
Number of ordinary shares 538,983,660 540,053,660 538,983,660
The fair value of awards made under the Long Term Incentive Plan is recognised
in other reserves.
Subject to the solvency test contained in the Companies (Guernsey) Law, 2008
being satisfied, ordinary shareholders are entitled to all dividends declared
by the Company and to all of the Company's assets after repayment of its
borrowings and ordinary creditors. The Trustee of the Company's Employee
Benefit Trust has waived its right to receive dividends on the 1,070,000 shares
it holds but continues to hold the right to vote. Ordinary shareholders have
the right to vote at meetings of the Company. All ordinary shares carry equal
voting rights.
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 2018
2018 2017 GBP000
GBP000 GBP000
Profit on disposal of investment properties (379) (2,488) (2,623)
Investment property valuation movements (9,961) (17,362) (38,920)
Share based provisions 319 358 642
Depreciation of tangible assets 3 12 12
(10,018) (19,480) (40,889)
13. NET ASSET VALUE
The net asset value per share calculation uses the number of shares in issue at
the period end and excludes the actual number of shares held by the Employee
Benefit Trust at the period end; see note 11.
At 30 September 2018, the Company had a net asset value per ordinary share of GBP
0.92 (30 September 2017: GBP0.86, 31 March 2018: GBP0.90).
14. RELATED PARTY TRANSACTIONS
The total fees earned during the period by the five Directors of the Company
were GBP138,000 (30 September 2017: GBP103,000, 31 March 2018: GBP232,000). As at 30
September 2018 the Group owed GBPnil to the Directors (30 September 2017 and 31
March 2018: 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
On 1 October 2018 the Company converted to a UK REIT and changed its listing
status to that of a commercial company from an investment company.
A dividend of GBP4,716,000 (0.875 pence per share) was approved by the Board on
22 October 2018 and is payable on 30 November 2018.
SHAREHOLDER INFORMATION
DIRECTORS
Nicholas Thompson (Chairman)
Andrew Dewhirst (appointed 1 October 2018)
Maria Bentley (appointed 1 October 2018)
Mark Batten
Michael Morris
Robert Sinclair (resigned 30 September 2018)
Roger Lewis
Vic Holmes (resigned 30 September 2018)
REGISTERED OFFICE UK OFFICE
PO Box 255 1st Floor
Trafalgar Court 28 Austin Friars
Les Banques London
St Peter Port EC2N 2QQ
Guernsey
GY1 3QL T: 020 7628 4800
Registered Number: 43673 E: enquiries@picton.co.uk
ADMINSTRATOR AND SECRETARY
Northern Trust International
Fund Administration Services (Guernsey) Limited
PO Box 255
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL
T: 01481 745 001
E: team_picton@ntrs.com
REGISTRAR
Computershare Investor Services (Guernsey) Limited
1st Floor, Tudor House
Le Bordage
St Peter Port
Guernsey T: 0370 707 4040
GY1 1DB E: info@computershare.co.je
CORPORATE BROKERS
JP Morgan Securities Limited
25 Bank Street
London
E14 5JP
Stifel Nicolaus Europe Limited
150 Cheapside
London
EC2V 6ET
INDEPENT AUDITOR
KPMG Channel Islands Limited
Glategny Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 1WR
MEDIA
Tavistock Communications
1 Cornhill
London
EC3V 3ND
T: 020 7920 3150
E: jverstringhe@tavistock.co.uk
SOLICITORS
As to English law
Norton Rose Fulbright LLP
3 More London Riverside
London
SE1 2AQ
As to English property law
DLA Piper UK LLP
Walker House
Exchange Flags
Liverpool
L2 3YL
As to Guernsey law
Carey Olsen
PO Box 98
Carey House
Les Banques
St Peter Port
Guernsey
GY1 4BZ
PROPERTY VALUERS
CBRE Limited
Henrietta House
Henrietta Place
London
W1G 0NB
TAX ADVISER
Deloitte LLP
Hill House
1 Little New Street
London
EC4A 3TR
SHAREHOLDER ENQUIRIES
All enquiries relating to holdings in Picton Property Income Limited, including
notification of change of address, queries regarding dividend/interest payments
or the loss of a certificate, should be addressed to the Company's registrar.
WEBSITE
The Company has a corporate website which contains more detailed information
about the Group www.picton.co.uk
GLOSSARY
AIC Association of Investment Companies.
Contracted rent The contracted gross rent receivable which becomes payable after all the
occupier incentives in the letting have expired.
DTR Disclosure and Transparency Rules, issued by the United Kingdom Listing
Authority.
Dividend cover Income profit after tax divided by dividends paid.
Earnings per Profit for the period attributable to equity shareholders divided by the
share (EPS) average number of shares in issue during the period.
EPRA European Public Real Estate Association, the industry body representing
listed companies in the real estate sector.
Estimated rental The external valuers' opinion as to the open market rent which, on the
value (ERV) date of the valuation, could reasonably
be expected to be obtained on a new letting or rent review of a
property.
Fair value The estimated amount for which a property should exchange on the
valuation date between a willing buyer
and a willing seller in an arm's length transaction after the proper
marketing and where parties had each acted knowledgeably, prudently and
without compulsion.
Fair value An accounting adjustment to change the book value of an asset or
movement liability to its fair value.
FRI lease A lease which imposes full repairing and insuring obligations on the
tenant, relieving the landlord from all liability for the cost of
insurance and repairs.
Gearing Total borrowings, less cash, as a proportion of gross property asset
value.
Group Picton Property Income Limited and its subsidiaries.
IASB International Accounting Standards Board.
IFRS International Financial Reporting Standards.
Initial yield Annual cash rents receivable (net of head rents and the cost of
vacancy), as a percentage of gross property value, as provided by the
Group's external valuers. Rents receivable following the expiry of
rent-free periods are not included.
Lease incentives Incentives offered to occupiers to enter into a lease. Typically this
will be an initial rent-free period, or a cash contribution to fit-out.
Under accounting rules the value of the lease incentives is amortised
through the Income Statement on a straight-line basis until the lease
expiry.
MSCI IPD An organisation supplying independent market indices and portfolio
benchmarks to the property industry.
NAV Net Asset Value is the equity attributable to shareholders calculated
under IFRS.
Over-rented Space where the passing rent is above the ERV.
Passing rent Cash rents passing at the Balance Sheet date.
Property income The ungeared income return of the portfolio as calculated by MSCI IPD.
return
Rack-rented Space where the passing rent is the same as the ERV.
RCF Revolving credit facility
REIT Real Estate Investment Trust
Reversionary Where the passing rent is different to the estimated rental value. The
income increase or decrease of rent arises on rent reviews and letting of
vacant space or re-letting of expiries.
Reversionary The estimated rental value as a percentage of the gross property value.
yield
Weighted average Each tranche of Group debt is multiplied by the remaining period to its
debt maturity maturity and the result is divided by total Group debt in issue at the
period end.
Weighted average The Group loan interest per annum at the period end, divided by total
interest rate Group debt in issue at the period end.
Weighted average The average lease term remaining to first break, or expiry, across the
lease term portfolio weighted by contracted rental income.
Picton Property Income Limited
1st Floor
28 Austin Friars
London
EC2N 2QQ
T: 020 7628 4800
www.picton.co.uk
END
END
(END) Dow Jones Newswires
November 13, 2018 02:00 ET (07:00 GMT)
1 Year Picton Property Income Ld Chart |
1 Month Picton Property Income Ld Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
