Picton Property Income

LN: PCTN

£450.1m market cap

82.2p 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

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.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 38.3 32.5 31.4 4.25 19.3 12.8
2020A 33.6 28.1 22.4 3.66 22.5 21.0
2021E 32.7 27.7 10.2 3.60 22.8 19.1
2022E 33.9 28.3 20.4 3.74 22.0 14.6
Industry outlook

The commercial property market is cyclical, historically exhibiting substantial swings in valuation through cycles while income returns have been more stable, but still fluctuating according to tenant demand and rent terms. The impact of the pandemic on the economic outlook remains uncertain. While the supply demand balance for regional office and industrial property has hitherto remained generally firm the weakness that was previously confined to the retail sector is likely to continue to broaden.

Last updated on 20/01/2021
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Share price graph
Balance sheet
Forecast net debt (£m) 148.5
Forecast gearing ratio (%) 31
Price performance
%
1m
3m
12m
Actual 9.0 35.6 (18.8)
Relative* 5.4 17.9 (9.6)
52-week high/low 103.0p/52.0p
*% relative to local index
Key management
Nicholas Thompson Chairman
Michael Morris CEO
Andrew Dewhirst FD

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