Picton Property Income

LN: PCTN

Market Cap£483m

Last Close 88.6p

Picton Property Income is an internally managed UK REIT that invests in a diversified portfolio of commercial property across the UK. It is total return driven with a strong income focus and aims to generate attractive returns through proactive management of the portfolio.

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Investment summary

Picton Property Income’s FY22 total earnings of £147m were the strongest since the company launched in 2005. Income gains and normalised rent collection underpinned DPS growth and while strong valuation uplifts mirrored broad market trends, Picton continued to build on its long-term record of portfolio outperformance. Returns are likely to moderate from the exceptional level of FY22, but Picton remains positive despite global economic and political challenges. The prospects for further uplifts in occupancy and rents are good with scope for accretive external growth.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2021A 33.5 28.1 33.8 3.68 24.9 19.3
2022A 35.4 29.7 147.0 3.88 23.6 17.9
2023E 37.1 30.9 70.3 3.95 23.2 15.4
2024E 38.6 32.0 38.1 4.15 22.1 15.3
Industry outlook

The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles while income returns have been significantly more stable. Despite a deteriorating economic outlook market momentum has thus far been maintained. Despite strongly rising inflation interest rates remain relatively low and like other real assets commercial property is expected to offer a degree of inflation hedging.

Last updated on 30/06/2022
Content on Picton Property Income
Picton Property Income – Record FY22 with positive outlook
Real Estate | research Outlook | 20 June 2022
Picton Property Income – executive interview
Real Estate | Edison TV | 14 June 2022
Picton Property Income – Strong FY22 builds on long-term record
Real Estate | research Flash note | 27 May 2022
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Share price graph
Balance sheet
Forecast net cash (£m) 198.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (10.1) (9.9) 1.8
Relative* (4.1) (4.2) 3.8
52-week high/low 106.0p/87.4p
*% relative to local index
Key management
Nicholas Thompson Chairman
Michael Morris CEO
Andrew Dewhirst FD