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.
The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles. Income returns have been significantly more stable, supporting rental growth across much of the market. Capital values are significantly down from the 2022 peak and should benefit from the expected decline in interest rates.
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Andrew Dewhirst
FD
Lena Wilson
Chairman
Michael Morris
CEO
Saira Johnston
CFO
Forecast net cash (£m)
211
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 2.3 | 1.4 | (12.7) |
Relative | (0.5) | (5.1) | (16.8) |
52 week high/low | 79.4p/60.3p |
Ahead of FY24 results to be published on 23 May, Picton Property Income has declared a Q424 DPS of 0.925p, a 5.7% increase on the previous quarter. The company intends to maintain fully covered dividends at the new level, an annualised run rate of 3.7p, well above the pre-pandemic DPS and the 3.5p paid in respect of FY24. The uplift reflects a continuing robust occupier market, supporting rental growth, as well as asset management activity, most notably the recent sale of Angel Gate. The sale was part of Picton’s strategy to accelerate the unlocking of value in its portfolio through the selective repurposing of office assets and accretively recycle the capital. Further repurposing asset management initiatives are being progressed.
Y/E Mar | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 35.4 | 29.7 | 147.0 | 3.9 | 17.0 | 12.9 |
2023A | 36.3 | 30.3 | (89.5) | 3.9 | 17.0 | 11.7 |
2024E | 36.6 | 30.0 | 8.9 | 3.8 | 17.4 | 13.7 |
2025E | 37.8 | 30.9 | 22.0 | 4.0 | 16.6 | 11.5 |