Picton Property Income (LSE: PCTN)

Currency in GBP

Last close As at 26/01/2023

GBP0.81

−0.80 (−0.98%)

Market capitalisation

GBP445m

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 while income returns have been significantly more stable. Commercial property has the potential to offer a degree of inflation hedging but rising government bond yields have begun to weigh on asset valuations across the main sectors.

Sector

Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Andrew Dewhirst

    FD

  • Lena Wilson

    Chairman

  • Michael Morris

    CEO

Balance Sheet

Forecast net cash (£m)

207.1

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.3 (5.7) (23.8)
Relative 0.4 (14.7) (25.6)
52 week high/low 106.0p/72.0p

Financials

Positive leasing activity and rental growth drove Picton Property Income’s H123 income returns, softening the impact of weaker market-wide property values and continuing its long track record of property outperformance versus the index. Significant opportunities for further growth in income and fully covered DPS are protected by 95% of drawn debt being fixed rate. Low gearing provides protection against further weakness in property values and NAV.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 33.5 28.1 33.8 3.68 22.0 17.0
2022A 35.4 29.7 147.0 3.88 20.8 15.7
2023E 36.5 30.5 (87.4) 3.86 20.9 16.1
2024E 38.0 31.4 21.6 3.96 20.4 13.7

Thematics

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free