Picton Property Income (LSE: PCTN)

Last close As at 18/05/2024

GBP0.70

0.90 (1.31%)

Market capitalisation

GBP381m

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.

Latest Insights

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Real Estate | Flash note

Picton Property Income — Unlocking value to drive DPS growth

Real Estate | Flash note

Picton Property Income — Accretive portfolio repositioning

Real Estate | Update

Picton Property Income — Capturing rent potential in Q3

Real Estate | Update

Picton Property Income — Focused on growing earnings

Sector

Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Andrew Dewhirst

    FD

  • Lena Wilson

    Chairman

  • Michael Morris

    CEO

  • Saira Johnston

    CFO

Balance Sheet

Forecast net cash (£m)

211

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 15.6 9.8 (8.8)
Relative 7.2 0.5 (16.1)
52 week high/low 79.4p/60.3p

Financials

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 17.9 13.6
2023A 36.3 30.3 (89.5) 3.9 17.9 12.3
2024E 36.6 30.0 8.9 3.8 18.3 14.4
2025E 37.8 30.9 22.0 4.0 17.4 12.1

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