Picton Property Income (LSE: PCTN)

Currency in GBP

Last close As at 09/06/2023


1.10 (1.42%)

Market capitalisation


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. Across all main sectors, the significant negative end-2022 adjustment to higher bond yields and economic uncertainty is showing increased stability in 2023 ytd and investment activity is improving.



Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Andrew Dewhirst


  • Lena Wilson


  • Michael Morris


Balance Sheet

Forecast net cash (£m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.4 5.7 (20.3)
Relative 6.7 10.2 (19.5)
52 week high/low 99.7p/66.9p


Rent growth, strong rent collection, increased occupancy and acquisitions offset inflationary cost pressures and higher interest rates to deliver stable EPRA earnings in FY23. DPS paid increased 4%, 112% covered. Reflecting valuation decreases, NAV per share was 16.6% lower at 100p and NAV total return was -13.9%. At the property portfolio level, Picton again outperformed the MSCI UK Quarterly Property Index, which it has done for 10 consecutive years, with upper-quartile performance over three, five and 10 years and since inception. The portfolio continues to offer strong organic income growth opportunities from rent reversion in industrials and void reduction in offices, in some cases through alternative uses. Meanwhile a defensive capital structure (LTV of 27% and 95% of drawn borrowings long-term and fixed cost) provides security and flexibility for inorganic opportunities.

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 21.3 16.5
2022A 35.4 29.7 147.0 3.88 20.2 15.3
2023E 36.5 30.5 (104.0) 3.86 20.3 15.7
2024E 38.0 31.4 21.6 3.96 19.8 13.3



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