Picton Property Income

LN: PCTN

£501.6m market cap

91.6p 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 pro-active management of the portfolio.

Investment summary

Picton Property Income is an internally managed UK REIT that invests in a diversified portfolio of commercial property across the UK. It aims to be one of the consistently best-performing, diversified, UK-focused property companies on the Main Market of the LSE. IT has outperformed the MSCI Quarterly Property Index over one, three, five and 10 years, and in the most recent reporting period (the six months ended 30 September 2019) it delivered an ungeared property total return of 3.5% compared with the Index return of 0.8%. To achieve this, Picton pursues a total return-focused strategy while giving a heavy focus to income returns. In this interview, chief executive Michael Morris discusses the interim results and the outlook.

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 21.8 14.1
2019A 38.3 N/A 31.4 4.3 21.3 14.2
2020E 35.2 N/A 26.0 3.9 23.5 17.0
2021E 37.3 N/A 24.7 4.2 21.8 15.2
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 19/11/2019
Share price graph
Balance sheet
Forecast net debt (£m) 175.3
Forecast gearing ratio (%) 34
Price performance
%
1m
3m
12m
Actual 1.1 5.7 10.2
Relative* (1.1) 2.8 4.5
52-week high/low 98.6p/79.4p
*% relative to local index
Key management
Nicholas Thompson Chairman
Michael Morris CEO
Andrew Dewhirst FD

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