Picton Property Income Ld

-1.50 (-1.91%)
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 Shares Traded Last Trade
  -1.50 -1.91% 77.20 89,713 10:19:10
Bid Price Offer Price High Price Low Price Open Price
78.20 79.20 77.20 77.20 77.20
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trust 46.54 146.99 26.80 288.06 422.75
Last Trade Time Trade Type Trade Size Trade Price Currency
10:12:22 O 12,000 78.1038 GBX

Picton Property Income Ld (PCTN) Latest News

Picton Property Income Ld (PCTN) Discussions and Chat

Picton Property Income Ld Forums and Chat

Date Time Title Posts
26/5/202307:03Undervalued, High-yielding Property Co...546
17/5/201309:29 Picton Property Income6

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Picton Property Income Ld (PCTN) Most Recent Trades

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Picton Property Income Ld (PCTN) Top Chat Posts

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Posted at 26/5/2023 07:03 by spectoacc
@speedsgh - agreed. The resi ones were supposedly nailed on, turns out they're now likely to slip to 2027 from 2025.

AFAIK the 2025, 2027 or 28 commercial rules are fairly committed - but not yet legislated - and the "2030 EPC B" looks most likely to slip. How can it not? It's extraordinarily harsh - I've got some old shops I let out & not a clue how I could get them to B.

Direction of travel clear tho - PCTN going to have to spend money on a quarter of the portfolio to get to C I reckon. Or sell some, along with everyone else.

Posted at 25/5/2023 13:43 by skyship
Debt structure now good, long maturity and fixed at 3.8%. LTV OK at 27%.

Divi cover good at 112%; but the 3.5p dividend provides a lowly yield of just 4.49% at 78p.

Discount after a further NAV fall is just 22%.

Once again PCTN seems over-valued versus peers:

# API - 51p - 38.1% & 7.84%

# EBOX - 60p - 34.3% & 7.37%

# SREI - 44.35p - 28.5% & 7.39%

PCTN has a loyal following, hence usually over-valued. But right now, far better value elsewhere, inc. the 3 above.

Posted at 25/5/2023 12:29 by speedsgh
~ NAV/EPRA NTA as at 31/3/23: 100p (31/3/22: 120p)
~ FY23 DPS 3.50p covered 1.12x (FY22: 3.40p covered 1.15x)
~ 76% of portfolio with EPC rating A-C (31/3/22: 71%)
~ LTV 27% (31/3/22: 21%)
~ Weighted average interest rate 3.8% (31/3/22: 3.7%)
~ Average duration 8.4 years (31/3/22: 9.6 years)

Preliminary Annual Results - HTTPS://www.londonstockexchange.com/news-article/PCTN/preliminary-annual-results/15971717

Picton announces its annual results for the year ending 31 March 2023.

Chair, Lena Wilson CBE, commented:
“Despite the challenges of inflation and higher interest rates, we have maintained both our EPRA earnings and our long-term track record of outperformance. We are continuing to upgrade and adapt our assets, ensuring they remain relevant and attractive to our occupiers, providing income sustainability.

As a business, we are in a resilient position. We have a strong capital structure with attractive long-term fixed rate debt. Our portfolio offers significant income upside, and we are already starting to see stability in asset values.”

Michael Morris, Chief Executive of Picton, commented:
“For the tenth consecutive year we have outperformed the MSCI UK Quarterly Property Index and our long-term track record shows upper quartile performance since launch in 2005. We remain focused on our portfolio performance, operational excellence and acting responsibly, and have strengthened our team accordingly.

One of the key advantages of having a diversified approach and a team with a proven track record of managing assets across sectors through several iterations of the investment cycle, is that we can draw on this experience during more challenging markets. This year, we have made significant progress, delivering rental growth and exploring and securing more valuable alternative uses at selected office assets. We have remained focused on sustainability, with further progress on our net zero pathway.

After a sharp and significant pricing correction in the property market in 2022, valuations appear to be stabilising, supported by resilience in the occupational markets. We will continue to explore opportunities to maximise earnings, whether at an asset level by capturing reversionary potential with our occupier focused approach or through growth and the economies of scale that our internally managed structure can deliver.”

Financial performance

– Stable EPRA earnings of £21 million
– Net assets of £548 million, or 100p per share
– Dividends paid of £19 million, 4% higher than preceding year
– Dividend cover of 112%

Defensive capital structure

– Loan to value of 27%
– Weighted average interest rate of 3.8%
– 95% of drawn borrowings fixed with 2031/32 maturities
– EPRA NDV £23 million higher than net assets, reflecting fair value of debt
– £38 million undrawn debt facilities

Resilient operational performance

– Outperforming property portfolio relative to MSCI UK Quarterly Property Index
– Like-for-like increase in passing rent of 10% and 3% in contracted rent
– Like-for-like estimated rental value increase of 9%
– Capturing rental growth through:
# 39 lettings, 25% ahead of March 2022 ERV
# 37 lease renewals or regears, 6% ahead of March 2022 ERV
# 20 rent reviews, 7% ahead of March 2022 ERV
– Rent collection over 99% for the year
– Occupancy of 91%
– Three separate acquisitions totalling £21 million

Increased investment with sustainability focus

– £6 million invested into upgrading over 15 assets
– Net zero carbon pathway progress, including installation of solar arrays
– 100% compliance with 2023 EPC minimum standards
– Improved EPC profile with 76% of portfolio rated A-C
– Scope 1 and 2 emissions reduced by 24% compared to 2019 baseline

Posted at 26/4/2023 07:10 by speedsgh
Dividend Declaration - HTTPS://www.londonstockexchange.com/news-article/PCTN/dividend-declaration/15931714

Picton today announces an interim dividend payment in respect of the financial period from 1 January 2023 to 31 March 2023, maintained at 0.875 pence per share.

The dividend timetable is set out below:

Ex-Dividend Date - 4 May 2023
Record Date - 5 May 2023
Pay Date - 31 May 2023

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

Posted at 20/4/2023 12:52 by speedsgh
Trading Update - HTTPS://www.londonstockexchange.com/news-article/PCTN/trading-update/15923764

Asset Management progress and stabilising valuations

Picton provides a trading update ahead of its full year results, to be released on 25 May 2023.


The independent valuation of the Group’s property portfolio as at 31 March 2023 was £766.2 million, reflecting a 1.2% decline relative to 31 December 2022.

This compares with the recently released MSCI UK Monthly Property Index which shows that All Property Capital Growth over the first three months of the year was -1.2%. This represents a significant improvement relative to the prior period and reflects stabilisation following the marked repricing after the September 2022 mini budget. Specifically, the MSCI Index has shown positive Capital Growth movements in March in both the industrial and retail sectors, for the first time since June 2022.

Rent collection

Rent collection remains consistently strong at 99.8%, for the last quarter.


Occupancy has improved to 91% (from 90% at 31 December 2022) following several leasing transactions offsetting space which has become available.

Portfolio activity

Activity over the three months included 19 lease renewals and extensions, 15 lettings, eight rent reviews and six surrenders. Key highlights over the quarter include:-

Capturing rental growth in the industrial sector

At Parkbury Industrial Estate, Radlett, an existing occupier was upsized, with two leases extended from 2025 to 2030 and the rent increased by 46% from £0.4 million to £0.6 million per annum, effective January 2025. In addition, Picton has pre-leased a unit which will become vacant in 2024, increasing the passing rent by 60% to £0.2 million per annum. Rents were in line with the December ERV.

At Riverway Industrial Estate, Harlow, an occupier has agreed to take an additional unit which became vacant at the end of 2022, after completion of upgrading works by Picton, including the installation of solar panels. Their rent increases from £0.3 million to £0.7 million per annum, which is in line with the December ERV.

At Madleaze Trading Estate, Gloucester, a rent review has been agreed with the largest occupier, increasing the rent by 29% to £0.3 million per annum, which is 23% ahead of the ERV at the time of acquisition in 2021. Elsewhere on the estate, two leases were renewed and separately occupier break options were removed in a further two leases, securing income until 2029. These transactions resulted in a combined uplift on the previous passing rent of 52% to £0.3 million per annum, 5% ahead of the December ERV.

Repositioning office assets

In response to market conditions, Picton is exploring higher value alternative uses at several office assets. Further details will be provided as these progress, but specifically at Angel Gate, London, EC1, Picton has used permitted development rights to secure residential use at this part vacant office scheme. Consent has been secured across seven buildings, totalling 17,760 sq ft, with the potential to create 19 residential units. In addition, applications are being progressed for residential use on another six buildings totalling 11,700 sq ft, creating a further 16 units.

Maintaining high retail occupancy

At Parc Tawe, Swansea, a lease has been renewed to a national retailer. The new rent is £110,000 per annum and is 10% above the December ERV but 17% below the previous passing rent.

At Gloucester Retail Park, a rent review was settled on one unit, increasing the rent by 30% to £78,000 per annum, 8% ahead of the December ERV.

In Cheltenham, a lease to a local retailer has been surrendered, securing a premium payment and a new letting to a national retailer has been agreed. This increases the passing rent by 6% to £45,000 per annum which is 1% ahead of December ERV.

A small retail unit has been leased to a local retailer at Charlotte Terrace, London, W10, for £25,000 per annum in line with December ERV.

Michael Morris, Chief Executive commented.

‘Our own independent valuation and the recent MSCI figures appear to indicate that the marked repricing seen at the end of last year has substantially run its course. In our portfolio increasing rents and rising rental values are having a positive valuation impact and offsetting some of the outward yield movement we have seen in recent months. Being able to improve occupancy and adapt our portfolio to changing market conditions is also encouraging.’

Posted at 08/3/2023 15:03 by petersinthemarket
NAV is plainly an important stat, but my mrs bt this, on my advice, in 2017, at AvgCost 88p and it has done nothing much since. Her pf is for LT total value and in that respect PCTN is just about positive but the DivYld is disappointing when we could get much the same in Gov stocks. This is a safe and solid, boring, company and we didn't expect fireworks, but we did hope for a gradual rise in capital appreciation and DivYld, ie total yld. If it does reach 88p again, we will quit.
Posted at 07/3/2023 16:45 by skyship
I agree with Peter. PCTN was good in the past - basically pre-2018; but recent performance hampered by their crazy decision not to refinance debt. They finally did so last year but still higher than most peers at 3.7%.

The high debt costs strangled their earnings, so even now PCTN yield a pretty miserly 4.59%; whilst discount unexceptional at 25.3%.

Personally I think it is a real no-no to view your yield at cost. To assess an investment surely you have to work on current stats. So forget that 8%; look at the 4.6%.

Posted at 07/3/2023 12:54 by speedsgh
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.

Posted at 27/2/2023 14:38 by skyship
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.
Posted at 31/1/2023 07:28 by speedsgh
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 - HTTPS://www.londonstockexchange.com/news-article/PCTN/trading-update-and-nav/15816762


Dividend Declaration - HTTPS://www.londonstockexchange.com/news-article/PCTN/dividend-declaration/15816760

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’).

Picton Property Income Ld share price data is direct from the London Stock Exchange
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