Picton Property Income Ld Share Discussion Threads

[speedsgh] 10/11/2021 19:57

Thames River Capital (a subsidiary of BMO Asset Management, ultimate owner Ameriprise Financial, Inc.) have increased their holding from 4.9% to 8.4%...



EDIT: increase is probably as a result of this which is taken from a holdings rns for MCKS on 8/11:
"This disclosure is the result of Ameriprise Financial acquisition of BMO's EMEA Asset Management business effective 8th November 2021."

[spectoacc] 10/11/2021 15:13

It'd be share-for-share but at least you should end up with PCTN's smaller discount.

Lots of differences at individual asset level - particularly depending on any recent CapEx (something SLI seems to be good at - could they be PCTN's best pick?).

[nickrl] 10/11/2021 14:56

Some useful background in presentation

Industrial: Strongest capital growth London at 16.5%. Weakest South West at 8.9% with rental growth positive in all subsectors. Strongest Eastern at 4.8%. Weakest South West at 2.4%

Offices: Strongest capital growth Eastern at 3.5%. Weakest Scotland at -3.4% with all office rental growth 0.4%. Strongest Midlands & Wales at 2.1%. Weakest South East at -0.5%

Retail: Strongest capital growth Strongest Retail Warehouse Midlands & Wales at 8.7%. Weakest Retail Outer South East at -6.7% with all rental growth at -1.5% and negative in all subsectors bar one. Strongest Retail Warehouse London at 0.3%. Weakest Standard Retail Wales -6.7%.

Much as expected although each REIT reporting a variation thats not always consistent with any overall trend other than retail is under pressure outside of wharehouses, Offices looking like a mixed bag and Industrials still star player.

Divi too low for me but be happy if they want to buy any of the others off ne at above par.

[flyer61] 10/11/2021 14:05

Surely they will work with a BOD/management team and aim for an agreed deal. ie those in the trough get a new trough.. PCTN getting a good deal. Topped up AIRE this morning. MCKS seems down and out...but everything has it's price. SREI has some nice assets as does BREI. SLI seems to be in a rut. EPIC is defo in a hot sector...looking forward to 5.5P dividend and a nice revision upwards in the NAV.

[spectoacc] 10/11/2021 10:53

Really interesting, missed the M&A comment, thanks.

AIRE perhaps too - ahem - unique. Arguably EPIC too, but in an almost hot sector. HCFT another oddity.

PCTN def in the driving seat, a small discount to NAV. But what Boards would willingly give up their jobs/expense accounts?

Ideally a REIT with a small/no manager holding or influence, but perhaps with a large shareholder willing to exit - as happened at DRUM very recently (CREI got a bargain).

If they were going to do it, they may as well go large - agree BREI, SLI, SREI all candidates. BCPT at a fat discount and very large, but another probably too far in the "oddity" category - would expect PE more likely to take it, or one of the other West End REITs.

Only takes PCTN to do one deal to narrow the entire sector. Bring it on.

(Tho does the comment also suggest they'd look to merge with unlisted/UT funds?).

[skyship] 10/11/2021 09:08

Very interesting comments.

Surely suggests a bit of M&A en route. What will be their target?

PCTN has a MCap of £547m.

Possible targets:

# AIRE: £59m
# BREI: £203m
# EPIC: £162m
# HCFT: £44m
# MCKS: £205m
# SLI: £309m
# SREI: £250m

AIRE & HCFT seem to small

MCKS perhaps too office committed (67%)

EPIC discount perhaps insufficient at 13.5%

That leaves BREI, SLI & SREI

[speedsgh] 10/11/2021 07:27

Cracking results. NAV 105p (31/3/21: 97p). Total return of 10.2%. Dividend cover 121%. Dividend now at 97% of pre-pandemic level...

Half Year Results -

And some teasers...

"As we plan for the future, we continue to evaluate our options to grow the business and intend to actively pursue further accretive opportunities."...

... "Since the start of the pandemic, many UK listed commercial property companies have traded at an increased discount to their net asset values. This divergence in real estate equity pricing is more pronounced in some companies than others and we view the situation across the sector as unsustainable in the long-term. Combined with well-publicised issues in unlisted property funds, we believe there is an opportunity for the market to benefit from some consolidation in order to generate the economies of scale that can be achieved through the removal of duplicated management costs, improved liquidity and greater overall efficiency.

The combination of our track record, cost base and internalised structure, means we are well placed to create further shareholder value by increasing the size of our portfolio. We will continue to engage to facilitate growth in a way that is attractive for our shareholders and the wider market."

[skyship] 10/11/2021 07:22

Interims in the Header:
=======================

Picton announces its half year results for the period to 30 September 2021.

Strong financial results

* 8.6% increase in net assets to £574 million, or 105p per share
* Profit of £54.4 million
* EPRA earnings of £10.9 million
* Total return of 10.2%
* Shareholder return of 12.7%
* Dividend cover of 121%
* Dividend increased by 6.3% over the period
* Loan to value ratio of 22%

[skyship] 09/11/2021 08:58

Interims tomorrow...

[speedsgh] 22/10/2021 08:19

Dividend Declaration -

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

The dividend timetable is set out below:

Ex-Dividend Date - 4 November 2021
Record Date - 5 November 2021
Pay Date - 30 November 2021

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

[speedsgh] 08/10/2021 13:48

Portfolio Update (8/10) -

Picton provides a portfolio update, ahead of its interim results to be announced on 10 November 2021.

In the quarter to 30 September 2021, the Company completed several asset management initiatives and lettings, as detailed below, adding £0.8 million per annum to the annualised rent roll, either in line or ahead of ERV.

Industrial

In Barking, it pre-let a 45,000 sq ft warehouse on a 15-year term, subject to landlord enabling works, which are due to complete this year. The new rent of £0.6 million per annum is 43% ahead of the previous passing rent and in line with the June ERV. The unit became vacant during the quarter.

Retail and Leisure

In Bury, it secured planning permission on a former retail warehouse unit to enable a pre-letting to JD Gyms on a ten-year term, subject to landlord enabling works. The rent of £0.15 million per annum is in line with the June ERV. Following the completion of this lease, the Company’s retail warehouse portfolio will be fully let.

In Huddersfield, it completed the sale of a non-core retail asset for £0.75 million, 7% ahead of the June valuation.

Office

In Glasgow, it completed the letting of the first floor at 180 West George Street for £0.2 million per annum, 4% ahead of the June ERV, for a term of five years.

In Chatham, it completed the letting of all the remaining space at 50 Pembroke Court to NatWest at £0.27 million per annum, 7% ahead of the June ERV, for a term of five years, subject to break.

Acquisition

In addition to these asset management initiatives, as announced on 1 October 2021, Picton has also acquired Madleaze Trading Estate in central Gloucester for £13.1 million. This will add £0.75 million per annum to the rent roll, with the potential to increase this further once the asset is fully let and rents are reset to current market levels.

Further detail will be provided in the interim results.

Michael Morris, Chief Executive, commented:

“These transactions will have a positive valuation impact and result in a further increase in occupancy and corresponding reduction in void holding costs across the portfolio. They also demonstrate the positive demand for our assets across all sectors and are further evidence that business activity is increasing.”

[speedsgh] 08/10/2021 13:44

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 13:07

New Edison update...

Strong start to FY22 -

[nickrl] 28/7/2021 13:57

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

[speedsgh] 28/7/2021 08:10

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 08:09

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 13:29

New Edison research note...

Positive outcome in a challenging year -

[speedsgh] 27/5/2021 12:01

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 15:23

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

Still hardly cheap!

[speedsgh] 30/4/2021 11:45

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 13:27

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.