Picton Property Income Ld Share Discussion Threads

[speedsgh] 08/10/2021 12:44

Acquisition (1/10) -

Picton has completed the freehold acquisition of Madleaze Trading Estate, located in central Gloucester for £13.1 million.

Adjacent to Gloucester Quays Retail Park and the Gloucester and Sharpness canal, the property comprises 18 industrial units totalling 304,000 sq ft on a 10.3 acre site. The estate is let to eight occupiers and currently includes two vacant units, which are to be refurbished prior to re-leasing.

The total rental income is £0.75 million per annum, equating to only £2.74 per sq ft. This is expected to rise to £0.86 million once the estate is fully let and has the potential to increase further as rents are reset to current market levels.

The purchase price reflects a net initial yield of 6.1% and a low capital value of £44 per sq ft, which is below the estimated reinstatement cost.

The Company has funded the acquisition using its revolving credit facility and the proforma LTV will increase to 22% post acquisition (June 2021: 21%).

Michael Morris, Chief Executive of Picton, commented:

“The estate offers short-term potential for income and capital growth through leasing vacant units and capturing the upside from such a low rental base. We intend to further improve and reposition the estate to widen its appeal for new and existing occupiers.”

[speedsgh] 04/8/2021 12:07

New Edison update...

Strong start to FY22 -

[nickrl] 28/7/2021 12:57

Dividend remains well covered here so as a REIT will they be obliged to add a top up payment?

[speedsgh] 28/7/2021 07:10

Dividend Declaration and Increase -

Picton today announces an increased interim dividend payment in respect of the financial period from 1 April 2021 to 30 June 2021, of 0.85 pence per share.

This reflects a 6.3% uplift on the preceding quarter’s dividend of 0.8 pence per share.

The dividend timetable is set out below:

Ex-Dividend Date - 5 August 2021
Record Date - 6 August 2021
Pay Date - 31 August 2021

The dividend of 0.85 pence per share will be designated as a property income distribution (‘PID’).

[speedsgh] 28/7/2021 07:09

Net Asset Value as at 30 June 2021 -

Financial Highlights

~ Net assets of £545.7 million (31 March 2021: £528.2 million).
~ NAV/EPRA NTA per share increased by 3.2% to 99.9 pence (31 March 2021: 96.8 pence).
~ Total return for the quarter of 4.0% (31 March 2021: 2.2%).
~ LTV of 20.6% (31 March 2021: 20.9%).

Operational Highlights

~ Like-for-like portfolio valuation uplift of 2.9% over the quarter.
~ Completed seven lettings, across all sectors, 2% below the March 2021 ERV with a combined annual rent of £0.9 million.
~ Secured an average increase of 21% against the previous passing rent from six rent reviews, all in the industrial sector, with a combined annual rent of £0.5 million which was 15% ahead of the March 2021 ERV.
~ Stable occupancy of 91% (31 March 2021: 91%).

Rent Collection

~ 94% of June 2021 rents have been collected or are expected to be received under monthly payment plans. The collection rate is expected to improve further over the coming weeks.
~ Rent collection rate of 95% for the March 2021 quarter.

Dividend increased by 6.3%

~ Interim dividend of 0.85 pence per share declared and to be paid on 31 August 2021 (31 March 2021: 0.8 pence per share).
~ Annualised dividend equivalent to 3.4 pence per share, delivering a dividend yield of 3.8%, based on 26 July 2021 share price.
~ Dividend cover for the quarter of 121% (31 March 2021: 122%).

Lena Wilson CBE, Chair of Picton, commented:

“This is the fourth consecutive quarter that we have delivered growth in net assets. In addition, we have taken the positive step to announce today a further 6.3% dividend increase.”

Michael Morris, Chief Executive of Picton, commented:

“We’ve had another successful quarter and are encouraged by our pipeline of activity across all sectors. This reflects improving sentiment as lockdown restrictions ease and as market conditions normalise.”

[speedsgh] 23/6/2021 12:29

New Edison research note...

Positive outcome in a challenging year -

[speedsgh] 27/5/2021 11:01

Highly creditable results in view of the unprecedented challenges that the economy and Picton's occupiers have faced during the financial year to 31/3/2021...

Preliminary Annual Results -

[skyship] 15/5/2021 14:23

A month later and they're back to 85p - 11.0% discount & a 3.76% yield.

Still hardly cheap!

[speedsgh] 30/4/2021 10:45

Dividend Declaration -

Picton today announces an interim dividend payment in respect of the financial period from 1 January 2021 to 31 March 2021, of 0.8 pence per share. This level is unchanged from the preceding quarter.

The dividend timetable is set out below:

Ex-Dividend Date - 13 May 2021
Record Date - 14 May 2021
Pay Date - 28 May 2021

The dividend of 0.8 pence per share will be designated as a property income distribution (‘PID’).

[skyship] 16/4/2021 12:27

PCTN looking seriously over-valued at 91.5p on a mere 4.7% discount and just a 3.52% yield. Bear in mind that their expensive debt at 4.2%pa (fixed for 9yrs) places severe restrictions on dividend growth.

They should have rescheduled that debt long ago - bitten the bullet in the same way SREI did just over a year ago.

[speedsgh] 02/2/2021 13:08

Latest Edison update...

Strong Q3 NAV growth and further DPS uplift -

[nickrl] 28/1/2021 10:42

NAV update today and another one that has shown an increase this time by 3.0% to 95.5 pence (30/9/20 92.7 pence).

Also qtrly div is up from 0.7 to 08p lifting yield to just shy of 4% on todays share price and 122% covered so scope for a bit more.

Another one with weasel words over rent collection saying

"87% of December 2020 rents have been collected or are expected to be received under monthly payment plans"

So how much have they got in the bank and what still to come would be more transparent but each propco seems to have its format over this should be a minimum information requirement.

Good asset mgt news and they've unloaded a big retail asset.

[skyship] 24/12/2020 13:09

Wishing you all Health & Happiness for Christmas & The New Year 🙂

[speedsgh] 11/12/2020 12:50

Latest 'paid for' Edison research note...

Resilient performance with positive returns -

In the challenging environment created by COVID-19, H121 results were resilient and we have increased our full-year FY21 forecast. Sector positioning, asset management and robust rent collection all contributed to performance. Portfolio returns were well ahead of the MSCI UK Quarterly Property Index and NAV total return was positive, underpinning the first steps in restoring the level of DPS towards pre-COVID-19 levels.

[speedsgh] 12/11/2020 12:43

Pretty impressive results in view of the circumstances. They managed to turn a profit, EPRA NAV unchanged at 93p since Mar 20 and dividend cover of 129% excluding additional income (admittedly after a dividend reduction)...

Half Year Results -

Financial Highlights

~ EPRA earnings of £10.1 million
~ Profit of £3.7 million
~ Net assets of £506 million, or 93p per share
~ Total return of 0.7%
~ Dividend cover of 148%
~ Loan to value ratio of 22%
~ £50 million available through new undrawn revolving credit facility

Operational Highlights

~ Total property return of 1.5%, outperforming the MSCI UK Quarterly Property Index of -1.6%
~ Occupancy increased to 90%
~ Nine lettings completed, securing £1.2 million per annum, 2.8% ahead of March 2020 ERV
~ 16 lease renewals / regears completed, retaining £2.3 million per annum, 14.3% above March 2020 ERV
~ Five rent reviews completed, securing an uplift of £0.3 million per annum, 16.3% above March 2020 ERV
~ Additional income of £1.3 million received from asset management initiatives
~ Retail and Leisure exposure reduced to 12% from 18% of the total property portfolio

Rent Collection

~ Received 90% of the March quarter’s rent, expected to rise to 96% under agreed deferred payment plans
~ Received 90% of the June quarter’s rent, expected to rise to 93% under agreed deferred payment plans
~ To date 93% of the September quarter’s rent has been collected or is expected to be received under monthly payment plans

Subsequent Events

~ Dividend increased by 12% to 2.8p per share effective November 2020
~ Completed a further £0.4 million per annum of lettings, 2.4% above September 2020 ERV, including the first letting at Stanford Building, WC2
~ Good leasing pipeline with approximately £0.7 million per annum of transactions agreed, subject to contract, across industrial, office and retail sectors

Picton Chairman, Nicholas Thompson, commented:

“Picton has delivered a profit in what has undoubtedly been a challenging period. Cognisant of this performance and the overall strength of the balance sheet, we felt it was appropriate to take the first step in restoring the dividend to pre-Covid levels by announcing a 12% increase, effective November 2020.”

Michael Morris, Chief Executive of Picton, commented:

“We have delivered robust progress at a portfolio level and rent collection in excess of 90%. As well as improving occupancy, generating additional income to offset Covid-19 impacts and completing some key asset management projects, we have also increased our weightings to the better performing industrial and office sectors.”

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

Our EPRA earnings for the period are similar to last year. Despite lower than usual rent collection we have been able to offset this with additional one-off income from active management initiatives, whilst reducing both property and administrative costs relative to this period last year.

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Dividend cover for the six months was 148%, or 129% excluding additional income. Recognising our rent collection performance and high dividend cover we have decided to increase the dividend by 12% to 0.7 pence per quarter, effective from the November payment which is a first step in restoring the dividend to its previous level.

[spectoacc] 26/10/2020 19:07

Thanks @nickrl, didn't realise the Covent Gdn one vacant.

There's a few have nudged divi back up (or reinstated) but I take issue with PCTN trumpeting it as a "12% increase" :)

[nickrl] 26/10/2020 19:02

These were carrying a fair void cost at year end but they've off loaded a Peterborough asset which had one void and an imminent loss of TK Maxx in Mar 21 so that will help but the reclassified W.End office in Covenant Gdn still vacant. They also have c22% of the NRI subject to break/expiry Apr20 to Apr22 ordinarily a positive but who knows in this environment so void costs could worsen. Negative comments out the way these are the first to increase a previously reduced dividend so BoDs must be confident they can maintain rental collection around 85-90% to cover it. As Specto says yield a paltry 4.6% at close but can't see much more upside on divi from here until things improve.

[skyship] 26/10/2020 15:50

HEADER updated...

[hugepants] 26/10/2020 15:05

Yep it doesn't stack up very well against say SLI which has a similar portfolio

[spectoacc] 26/10/2020 08:19

As always, spoilt for choice, but PCTN reminds me a lot of UCKM. Large (half a billion quid of property), low LTV (half what some have), but poxy yield. A 12% increase of squat is still squat :)

4.5% yield now I reckon? Claim very low retail exposure but helped by reclassifying one asset from High St Retail to West End Office. Either canny property management, or canny classification.

49% industrial, ought to be on a better yield IMO.

I like PCTN - and UKCM - both seem conservative and "cheap" in any normal scenario. But neither stack up that well against everything else on offer atm.

[nickrl] 04/8/2020 16:21

What troubles me about AEWU is they've disposed of there biggest asset - yes at good price but they've lost the income stream so unless they tap into the cash they received can't see them raising the divi. I let that issue blight me at the time for dipping in so gone up too imo now. However, what im seeing in many of these is an up trend for a few weeks following good news then a slow drift back so will keep an eye on it.

[2wild] 04/8/2020 15:00

Despite it's 15% rise since I posted here just over a week ago, AEWU still looks great value with 8.6% covered yield (9.6% actual), super low LTV of 13.5% and 2.05% cost of debt including hedging.

[skyship] 04/8/2020 13:43

nickrl

Bizarrely, no shortage of good income plays.

RECI for sure. At 127p, with the covered and retained 12p dividend the yield = 9.45%

INLZ - a ZDP. At 153.5p the GRY (YTM) = 7.5%

AIRE - as you know, another propco, but trading at a well covered, reduced dividend yield of 6.3% and a 41% NAV discount. IMO the Divi likely to be higher than the 3.3p conservatively stated.

[nickrl] 24/7/2020 08:22

Can't fault there transparency on rental collection. They set the standard template others should adopt. As Sky says a tad too pricey still but given there relatively stable share price compared to others maybe that the price I have to accept to get some income without risking capital erosion.

[2wild] 24/7/2020 07:59

Or compair to AEWU 11% yield, 13.5% net LTV, 2% cost of debt and 20% discount to NAV. This quarters div is not fully covered but still 9.5% annualised on a 100% covered basis.