Picton Property Income

LN: PCTN

£504.9m market cap

92.2p last close

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.

Investment summary

Against a more uncertain political and economic backdrop, Picton produced a solid performance in H120 with a positive 2.8% NAV total return built off a good property portfolio performance. A significant refurbishment programme dampened income and recurring earnings as expected, but dividend cover remains strong. Portfolio positioning (more than 80% in the well-performing industrial and office sectors), moderate gearing and significant potential to increase income by leasing refurbished space at completion are positive indicators for future performance.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 38.4 N/A 64.7 4.2 22.0 N/A
2019A 38.3 N/A 31.4 4.3 21.4 N/A
2020E 34.8 N/A 27.9 3.8 24.3 N/A
2021E 36.8 N/A 24.9 4.2 22.0 N/A
Industry outlook

The supply demand balance for regional office and industrial property remains generally firm, and a positive yield spread between the regions and London offers potential for further narrowing. Rents and capital values in the retail sector have continued to weaken.

Last updated on 06/12/2019
Share price graph
Balance sheet
Forecast net debt (£m) 153
Forecast gearing ratio (%) 30
Price performance
%
1m
3m
12m
Actual 3.4 6.2 16.1
Relative* 4.5 5.6 6.0
52-week high/low 98.6p/79.9p
*% relative to local index
Key management
Nicholas Thompson Chairman
Michael Morris CEO
Andrew Dewhirst FD

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