Picton Property Income (LSE: PCTN)

Currency in GBP

Last close As at 25/09/2023

GBP0.69

−1.20 (−1.71%)

Market capitalisation

GBP377m

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.

Latest Insights

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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)

206.5

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 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

Financials

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

Research

Update

Real Estate

Picton Property Income — Strong start to FY22

edison tv

Real Estate

Picton Property Income – executive interview

edison tv

Real Estate

Executive interview – Picton Property Income

Update

Real Estate

Picton Property Income — Portfolio progress continuing

edison tv

Real Estate

Executive interview – Picton Property Income

edison tv

Real Estate

Executive interview – Picton Property Income

edison tv

Real Estate

Executive interview – Picton Property Income

Update

Real Estate

Picton Property Income — Strong total returns continue

Update

Real Estate

Picton Property Income — Diversified and consistent

edison tv

Real Estate

Executive interview – Picton Property Income

Update

Real Estate

Picton Property Income — Accretive reinvestment

Update

Real Estate

Picton Property Income — Progress continues

edison tv

Real Estate

Executive interview – Picton Property Income

Initiation

Real Estate

Picton Property Income — Consistent outperformance

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