Picton Property Income Ld Share Discussion Threads

[sleepy] 06/6/2018 07:05

I believe UK REITs must distribute at least 90% of their income

[skyship] 06/6/2018 06:38

Wirral - sorry, unable to find why I stated that 4p divi! Doesn't appear to be referenced from an IC or Edison article. Could still be of course.

[speedsgh] 05/6/2018 17:04

My initial impression was that they were guiding a probable increase subject to prevailing market conditions but the statement is poorly worded and unclear. We'll find out in due course. Would be somewhat surprised to see a reduction when the company seems in such rude health. Aimho

[wirralowl] 05/6/2018 14:07

So is it right to presume that post-REIT the dividend is likely to be increased rather than decreased, in light of their statement today?

I note Skyship in post 392 refers to a potential 4.0p dividend post-REIT (which would be very nice!), but can't find any reference to this elsewhere?

[speedsgh] 05/6/2018 08:16

Indeed, pete. Note that, as they have previously flagged, they intend to convert to a UK REIT on 1/10/18. Also state that they will review the dividend level once they have converted taking into account prevailng market conditions...

Annual Financial Results -

REIT conversion

At the time of our last Half Year Report, I advised that we were awaiting an announcement of new legislation in the UK regarding the taxation of non-resident landlord companies such as Picton. Six months later and there are now two new pieces of legislation being introduced that will impact Picton. The first is that non-resident landlord companies will be brought into the scope of UK corporation tax, from 1 April 2020. The result of this is that we would expect our liability to UK tax to increase significantly from that date. Additionally, from 1 April 2019, capital gains made by a non-resident on the disposal of commercial property will be subject to UK tax.

Therefore, any disposals the Company makes from its portfolio after that date will be taxed, consequently reducing shareholder returns. I have stated previously that we were preparing plans to convert to a UK REIT in the event of tax changes adversely affecting Picton, and these have now been finalised. We will shortly be issuing a circular to shareholders with our detailed proposals, including a number of resolutions to be voted on at a General Meeting in July.

In summary, we wish to enter the REIT regime on 1 October this year, after becoming tax resident in the UK, which is a condition of entry. There will be some changes proposed to the articles of the Company to facilitate the REIT conversion. At the same time we are proposing to transfer our technical listing status from an investment company to a commercial company, which we believe is more appropriate for Picton and is consistent with the vast majority of internally managed UK REITs. As a result there will be changes to the way the Company is managed once we are based in the UK, including having a business strategy rather than an investment objective. We will no longer have an investment management subsidiary but will be managed through a traditional board structure with an executive function. However, our investment approach and portfolio strategy will remain very similar.

We have set out, separately within this report, a ‘Question and Answer’ section on the proposed changes, and within the Governance section there is also more detail regarding management changes and the role of the Board. We believe that these changes represent an important step in the evolution of the Company and recommend their approval by shareholders.

Dividends

I am pleased to report that in each of the last three financial years we have increased our dividend, most recently by 3% in February 2018. During this year we paid dividends to shareholders of £18.5 million, an increase of 3% compared to last year, with dividend cover of 122%.

We have continued to maintain a covered dividend throughout the year, in line with our strategy and enabling reinvestment back into the portfolio. Once we are in the UK REIT regime, we will review our dividend level in light of prevailing market conditions.

[petewy] 05/6/2018 07:53

Strong financial results
Total profit after tax increased by 50% to �64.2 million
Net assets increased to �487.4 million, from �441.9 million
Increase in EPRA NAV per share of 10.5%, to 90 pence per share
Total return of 14.9%
Increase in earnings and dividends

Increase in earnings per share to 11.9p from 7.9p
Increase in EPRA earnings per share of 10.1% to 4.2p from 3.8p
Dividend increase of 3% in February 2018 to 3.5 pence per share per annum
Dividends paid of �18.5 million with dividend cover of 122%

[petewy] 04/6/2018 07:48

Results tomorrow

[speedsgh] 24/4/2018 09:41

8.6p (+10.5%) increase in NAV over the past 12 months is not to be sniffed at imo...

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] 24/4/2018 09:24

Dividend Declaration -

Picton (LSE: PCTN), the property investment company, today announces an interim dividend payment in respect of the financial period from 1 January 2018 to 31 March 2018, of 0.875 pence per share.

The dividend timetable is set out below:

Ex-Dividend Date - 10 May 2018
Record Date - 11 May 2018
Pay Date - 31 May 2018

[speedsgh] 24/4/2018 09:22

Net Asset Value as at 31 March 2018 -

Continued NAV growth

> Net Assets increased to £487.4 million (31 Dec 2017: £477.4 million).
> NAV/EPRA NAV per share rose 2.1% to 90.4 pence (31 Dec 2017: 88.6 pence).
> Total return for the quarter of 3.1% (31 Dec 2017: 4.1%).
> Net gearing reduced to 26.7% (31 Dec 2017: 27.4%).

Dividend declared and improved cover

> Dividend of 0.875 pence per share declared and to be paid on 31 May 2018 (31 Dec 2017: 0.875 pence per share).
> Annual dividend equivalent to 3.5 pence per share, delivering a dividend yield of 4.0%, based on 20 April 2018 share price.
> Dividend cover for the quarter of 128% (31 Dec 2017: 126%).

Portfolio growth and improved occupancy

> Like-for-like increase in property portfolio valuation for the quarter of 1.4% (31 Dec 2017: 2.1%).
> Exchanged contracts to dispose of a non-core asset for £3.85 million, 5% ahead of the December valuation.
> Completed five lettings, nine lease renewals / regears and one rent review, on average 4.5% ahead of the December ERV, with a combined annual rent of £1.9 million.
> Occupancy increased to 96% (31 Dec 2017: 95%).

Nick Thompson, Chairman of Picton, commented:

“Picton has had another good quarter and end to its financial year. We remain well placed, delivering further growth in net assets, strong dividend cover and having further reduced our gearing.”

Michael Morris, Chief Executive of Picton Capital, said:

“Our focus on leasing and tenant retention has been the main driver behind the increase in portfolio valuation during the period and our improvement in occupancy reflects this. We have also been helped by the weighting of our portfolio towards the industrial and office sectors, given the recent well publicised difficulties in the retail sector.”

[skyship] 11/4/2018 13:24

Ahh - an old IRET holder - as per the Header. Glad you stocked up in the new form.

[mushypeas] 10/4/2018 13:35

Only since the change of company name. My first tranche cost me 107p!

Happily brought a load more after 2009 and the management have subsequently done a good job.

[skyship] 10/4/2018 13:00

Breaking 88p - an all-time high...

[petewy] 09/4/2018 11:39

trades picking up. ISA's coming into play as a safe bet for dividend

[petewy] 25/3/2018 12:55

Thanks Speedsgh and or MRCH

[sleepy] 24/3/2018 22:17

Interesting that Picton have doubled over the last 5 years while other REITS have performed less well eg RLE up less than 30%

[skyship] 24/3/2018 17:13

Header updated to include stats announced in Jan'18.

PCTN shared in the Market and sector weakness last week. The sector weakness may be due to the continuing weakness in retail; and the very public reduction of store rentals at New Look.

The shares are now trading at a 5% discount to NAV; an historic yield of 4.2% on a 3.5p total dividend and a prospective yield of possibly 4.8% on a post-REIT 4.0p total dividend in 2019.

[speedsgh] 29/1/2018 16:36

New Edison research note released last Friday...

Strong total returns continue -

[speedsgh] 24/1/2018 09:53

Dividend Declaration -

Picton (LSE: PCTN), the property investment company, today announces an interim dividend payment in respect of the financial period from 1 October 2017 to 31 December 2017, of 0.875 pence per share.

The dividend timetable is set out below:

Ex-Dividend Date - 8 February 2018
Record Date - 9 February 2018
Pay Date - 28 February 2018

[speedsgh] 24/1/2018 09:52

Net Asset Value and Corporate Update -

Continued NAV growth
- Increase in Net Assets to £477.4 million (30 Sept 2017: £463.8 million).
- NAV/EPRA NAV per share rose 3.1% to 88.6 pence (30 Sept 2017: 85.9 pence).
- Total return for the quarter of 4.1% (30 Sept 2017: 3.5%).
- Reduction in net gearing to 27.4% (30 Sept 2017: 28.2%).

Improved dividend cover
- Increased quarterly dividend of 0.875 pence per share declared (30 Sept 2017: 0.85 pence per share) - see separate announcement of today’s date.
- Annual dividend equivalent to 3.5 pence per share, delivering a dividend yield of 4.0%, based on 22 January 2018 share price.
- Dividend cover for the quarter of 126% (30 Sept 2017: 119%).

Portfolio growth and stable occupancy
- Like-for-like increase in property portfolio valuation for the quarter of 2.1% (30 Sept 2017: 1.9%).
- Completed the disposal of one non-core asset for £0.6 million, in line with the September valuation.
- Completed five lettings, seven rent reviews and five lease renewals, securing additional annual income of £0.26 million, on average 1.9% ahead of the September ERV.
- Occupancy maintained at 95% (30 Sept 2017: 95%).

DIVIDEND DECLARATION
A separate announcement has been released today (24 January 2018) declaring a dividend of 0.875 pence per share in respect of the period 1 October 2017 to 31 December 2017 (1 July 2017 to 30 September 2017: 0.85 pence).

Post-tax dividend cover over the quarter was 126% (30 Sept 2017: 119%).

REIT CONVERSION
In 2018, the Company intends to bring forward proposals to enter the UK REIT regime as set out in the 2017 Half Year Report. This follows the changes to the taxation of non-resident landlord companies announced in the November Budget. At the same time it will seek to change its technical listing status to that of a commercial company.

It is expected that following publication of the Company’s audited full year results in June, it will seek shareholder consent at a General Meeting with a view to effect the changes by 1 October 2018.

[janeann] 01/1/2018 17:08

see rns/ news released by pctn 22 dec ...........



PRN


22 December 2017

PICTON PROPERTY INCOME LIMITED
(Picton, the Company or the Group)

LEI: 213800RYE59K9CKR4497

Key Information Document

Picton Property Income Limited (the Company) will release a Key Information Document (KID) in compliance with the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation on 2 January 2018.

The KID will be available on the Companys website from the above date, within the Investors section, under Key Information Document.

For further information please contact:

[ugandalad] 30/12/2017 12:53

Anyone have views on the significance of the post whichI've uplifted from a Citywire email this morning purporting to emanated from HL.
It appears to be 6 days old so not impacted the share price much yet. I assume because of the source it's true.
quoteI have been told by HL that as from Jan 18 it will not be possible to buy any further shares in Picton either by them or any other UK stockbroker because of their failure to issue a KID which a requirement by the new rules (‘PRIIPs).. This sounds quite odd but HL have been quite clear on the matter (see below);

"The new regulation requires that issuers of certain types of investments (known as ‘Packaged Retail Investment and Insurance Products’ or ‘PRIIPs’) must issue a Key Information Document (or KID) if they are available to private investors.
Without a KID, private investors will not be able to make any further purchases, although they can continue to hold the PRIIPs they already own. They can also sell at any stage.
The issuer of Picton Property Income Limited Ord NPV have not confirmed that they intend to publish a KID.

This means that from 1 January 2018 you may not be able to buy any more of this stock. As well as the dealing instructions you give us, the new regulation applies to automated trades we place on your behalf (such as dividend reinvestments, limit orders and regular savings instructions). Therefore, from the start of next year we may also need to turn off any automated trades we would otherwise have placed in this stock.

Please be assured that we will continue liaising with investment providers on this matter and if yours does publish a KID we shall let you know.

However, if they fail to publish a KID then from 1 January 2018 you will not be able to buy any more of this stock."

I wonder where this leaves current Picton shareholders who want to have more shares either through reinvestment of dividends or simply as a new investment- why is there a reluctance from Picton to issue the KID?
Unquote

[speedsgh] 30/11/2017 12:43

New Edison research note released today...

Diversified and consistent -

[skyship] 25/11/2017 17:37

HEADER updated...

[speedsgh] 22/11/2017 12:47

Courtesy of Robin Boyle (MD, Athelney Trust plc) on Twitter...

"Both Stifel and Winterflood have issued positive notes on Picton Property Income. The former suggests that the 2019 prospective yield might be 4.2% and discount to NAV 5%. REIT conversion could occur in 2018."