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, although investment activity is weak.
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Andrew Dewhirst
FD
Lena Wilson
Chairman
Michael Morris
CEO
Forecast net cash (£m)
206.5
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 2.2 | (1.4) | (16.8) |
Relative | (1.3) | (3.5) | (22.6) |
52 week high/low | 89.9p/66.0p |
Leasing progress continued in Q124 at levels above passing rent and/or estimated rental value although occupancy was a little lower at 90% (end-FY22: 91%), in part reflecting asset management activity. Portfolio valuation has stabilised relative to previous quarters, with a like-for-like decline of just 0.7%, supported by positive movements in the industrial and retail sectors. NAV/ share was 99.4p (end-FY22: 100.4p) and adjusted for the quarterly DPS paid (0.875p) the total return was -0.2%. Picton attributes a dip in dividend cover during the quarter to the aggregation of a number of small impacts in the period and we expect full dividend cover for the year. The portfolio continues to offer strong organic income growth opportunities, while a defensive capital structure (LTV of 27% with most borrowing 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) |
---|---|---|---|---|---|---|
2022A | 35.4 | 29.7 | 147.0 | 3.88 | 17.8 | N/A |
2023A | 36.3 | 30.3 | (89.5) | 3.90 | 17.7 | N/A |
2024E | 38.4 | 31.8 | 21.8 | 4.00 | 17.3 | N/A |
2025E | 39.2 | 32.3 | 22.4 | 4.11 | 16.8 | N/A |