Picton Property Income Ld Share Discussion Threads

[speedsgh] 07/3/2023 12:54

I have to disagree, Peter. There are so many ways of comparing (NAV, NAV total return, share price total return etc) and it of course depends over what timescales you want to compare. From my experience as a LTBH investor who first invested in 2011, PCTN has performed admirably providing a growing income (currently 8% yield on my average cost) and steady capital appreciation. On a pure NAV view it also appears to have outperformed most of its generalist peers over all bar the most recent timescales e.g.

Ticker >> NAV 31/12/15 >> NAV 31/12/22 >> % change
PCTN >> 75.7p >> 102.2p >> +35.0%
API >> 82.2p >> 84.8p >> +3.2%
BCPT >> 135.3p >> 118.5p >> -12.4%
CTPT >> 99.9p >> 95.4p >> -4.5%
SREI >> 62.4p >> 62.0p >> 0%
UKCM >> 86.7p >> 79.7p >> -8.0%

I would be interested to see a comparison of NAV total return over the long term but unfortunately don't have the data available for this.

More than happy to continue to hold here.

[petersinthemarket] 06/3/2023 12:26

Chart looks interesting now - a convincing double bottom formation, coupled with solid support around 76p, plus an obvious pennant forming. So, share price decision time imminent - up or down? - chart suggests up - we'll soon see. On balance, poor capital return over several years and a miserly dividend. Time it did something interesting.

[nickrl] 01/3/2023 15:12

@sky another one that has loyal following though has good length on debt and covers the divi currently but can't see it moving up more than a 3-4% pa which if it >6% i would take.

[skyship] 27/2/2023 14:38

Problem with PCTN is that it is over-valued versus many of its peers. That 4.5% yield just doesn't cut the mustard when you look across at so many yielding in the range of 6%-8%, most on higher discounts as well.

[petersinthemarket] 27/2/2023 13:34

Remember, PCTN pays Edison £60k to produce this note. Up to you to decide on its independance.

[speedsgh] 03/2/2023 13:22

New Edison update...

Picton Property Income: Growing income and portfolio outperformance -

[spectoacc] 31/1/2023 07:33

Guessing this (to December) will be the worst of the NAV falls for all the REITs, but woe betide them if it isn't, or if it lasts a few years (the timescale when consumer spending is forecast to continually decline).

-12.7% in a quarter...

[speedsgh] 31/1/2023 07:28

NAV/EPRA NTA down 12.4% to 102.2p (30/9/22: 116.7p). Rents continue to rise. Occupancy stable at 90%. LTV 26.4%. Dividend cover 112%.

Trading Update and Net Asset Value as at 31 December 2022 -

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

Dividend Declaration -

Picton today announces an interim dividend payment in respect of the financial period from 1 October 2022 to 31 December 2022, maintained at 0.875 pence per share.

The dividend timetable is set out below:

Ex-Dividend Date - 9 February 2023
Record Date - 10 February 2023
Pay Date - 28 February 2023

The dividend of 0.875 pence per share will be designated as a property income distribution (‘PID’).

[nickrl] 14/11/2022 19:20

@sky this statement suggest to me that 4% yield is as good as its going to get

"Our distribution is back to pre-pandemic levels and whilst we continue to keep the dividend level under review depending on further leasing progress and improved occupancy levels, we believe it is right to be prudent at this stage given the current economic backdrop"

Anyhow at least the miserly dividend is well covered at the cash level and could certainly be lifted up more especially as it looks like a decent income increase from locked in rent free periods expiring and stepups although above suggests they wont. You can also see how much voids can impact propcos with slight deterioration from 93 to 90% driving up void costs by 50% or another 0.5m.

Would like to see 5% to make me interested but doubt share price will drop back to that level anytime soon.

[skyship] 09/11/2022 08:59

Forgot that the NAV comparison is with Mar'22, not Jun'22. So the Q3 fall seems pretty much in line with others at c7%.

With the 10% fall in Industrials in October (CBRE stats); and with the weighting here at c53%, PCTN looking over-valued versus peers on their 25.6% discount and mere 4% yield.

[skyship] 08/11/2022 08:26

nick - I can edit the Header - but regrettably, not the Title!

[nickrl] 07/11/2022 23:18

@sky never got why this one is so supported with it low yield but with its high industrial weighting i can concur with your view that a reduced NAV should be expected although the correlation between REITs is never that good. No immediate debt issues to worry about and divi will be maintained so not sure it will be a valuable short.

Edit: would suggest the title "Undervalued, High-yielding Property Co..." isn't representative of today although i guess if you were in it 10 years ago its been worthy investment.

[skyship] 07/11/2022 15:55

Reckon these could be a good short ahead of Wednesday's Interims. The NAV unlikely to be much more than 113p, at which level the discount falls to 23%. Couple that with the yield of only 3.9% and PCTN looks certainly 10% over-valued versus peers.


free stock charts from uk.advfn.com

[speedsgh] 21/10/2022 11:22

Dividend Declaration -

Picton today announces an interim dividend payment in respect of the financial period from 1 July 2022 to 30 September 2022, maintained at 0.875 pence per share.

The dividend timetable is set out below:

Ex-Dividend Date - 3 November 2022
Record Date - 4 November 2022
Pay Date - 30 November 2022

The dividend of 0.875 pence per share will be designated as a property income distribution (‘PID’).

[speedsgh] 15/9/2022 09:25

Bit more info on the recent Cheltenham acquisition rns...

Addington Capital sells re-purposed mixed-use block in Cheltenham -

[speedsgh] 27/7/2022 09:01

2.0% increase in NAV to 122.9p (31/3/22: 120.4p)...

Trading Update and Net Asset Value as at 30 June 2022 -

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

0.875p PID payable on 31/8...

Dividend Declaration -

Ex-Dividend Date - 4 August 2022
Record Date - 5 August 2022
Pay Date - 31 August 2022

[spectoacc] 26/5/2022 10:29

3.7% might seem like a very good rate in a few years ;)

But fair point, tho makes it all the more strange that PCTN held close to NAV for so long.

[nickrl] 26/5/2022 08:52

Sky they claim the average IR is now 3.7% mind you they paid out £4m to one of the lenders to amend terms. So disregarding that hit on cashflow they still have sufficient cash to up the divi by 10% but they haven't. Divi too low for me although its surprising how the REITS with heavy industrial weighting are still being treated like pariahs compared to logistics centric ones.

[skyship] 26/5/2022 08:25

120p! Great NAV rise. The problem with PCTN as I've often stated is that they failed to reschedule their debt, so continue to be saddled with another 9yrs of 4.2%. That is why the dividend yield is where it is; far lower than all their competitors.

[spectoacc] 26/5/2022 07:45

PCTN's a strange beast, "Look at us, we're going to be the consolidator, we're valued at only a few % below NAV".

Did no consolidating, now valued at the bog-standard 20% discount to 120p NAV.

Can understand some disconnect btwn NAVs & S/Ps with a possible recession looming, but the discounts to hugely rising NAVs is odd. ie they may well fall, but appear to be going a lot higher first.

PCTN now joined BCPT, BREI, SLI, SREI etc, in the "spoiled for choice" category.

[skyship] 23/5/2022 13:49

Finals this Thursday - NAV up to 110p perhaps...

[spectoacc] 16/5/2022 09:23

Looks a decent buy, who was the seller?

[speedsgh] 16/5/2022 09:17

Acquisition -

Picton has completed the freehold acquisition of Charlotte Terrace, Hammersmith Road, W14 for £13.7 million.

Charlotte Terrace comprises four adjoining buildings, which total 28,500 sq ft of office space and 4,400q ft of retail space, arranged over five floors. The property was redeveloped behind the façade in 1990 and is Grade II listed, meaning there is no business rates payable on void units.

The property is located close to Olympia, which is currently undergoing a £1 billion redevelopment delivering a new creative district, with a new theatre, entertainment venue, hotel, office, retail and leisure space, which will enhance the surrounding area.

The current annual rental income is £0.5 million equating to £34 per sq ft. The office space is let to seven occupiers and the retail space is let to two occupiers. This is expected to rise to over £1.1 million once the remaining units are leased. To improve occupancy, Picton will upgrade the offices and rollout SwiftSpace, its recently launched flexible lease offering.

The purchase price reflects a net initial yield of 3.3%, rising to over 8% once fully let and reflecting a low capital value of £417 per sq ft, which is below its estimated replacement cost.

The Company has funded the acquisition from existing cash resources.

Michael Morris, Chief Executive of Picton, commented:

“We have taken advantage of our diversified approach to invest in a mixed-use asset where we believe we can unlock significant income and value with our occupier focused asset management approach. In addition, we think this area will be significantly enhanced once the Olympia scheme is delivered over the next few years.”

[speedsgh] 27/4/2022 07:09

Dividend Declaration -

Picton today announces an interim dividend payment in respect of the financial period from 1 January 2022 to 31 March 2022, of 0.875 pence per share.

The dividend timetable is set out below:

Ex-Dividend Date - 12 May 2022
Record Date - 13 May 2022
Pay Date - 31 May 2022

The dividend of 0.875 pence per share will be designated as a property income distribution (‘PID’).

[nickrl] 25/3/2022 10:02

speedsgh this illuminates how much deviation we are seeing on ERVs at the moment across many REITs, well the ones that like to give reasonable transparency on lease events, that indicates valuations ought to move up still when we get this qtrs NAV updates later into next month. After this qtr though i believe we will see start see some cooling off as the economy responds to the energy impact and reduced discretionary spending.