Last close As at 05/08/2026
GBP0.74
▲ 1.10 (1.50%)
Market capitalisation
GBP382m
Research: Real Estate
Picton Property Income has agreed the sale of Angel Gate, its second largest office asset, and largest portfolio void, with an agreed consideration above the Q323 valuation. The sale is part of its strategy to repurpose selective office assets and accretively recycle the capital. This sale supports NAV, and we expect a positive impact on earnings. Further repurposing asset management initiatives are being progressed.
Picton Property Income |
Accretive portfolio repositioning |
Office disposal |
Real estate |
9 April 2024 |
Share price performance
Business description
Analyst
Picton Property Income is a research client of Edison Investment Research Limited |
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Picton Property Income has agreed the sale of Angel Gate, its second largest office asset, and largest portfolio void, with an agreed consideration above the Q323 valuation. The sale is part of its strategy to repurpose selective office assets and accretively recycle the capital. This sale supports NAV, and we expect a positive impact on earnings. Further repurposing asset management initiatives are being progressed.
Year end |
Net property income (£m) |
EPRA earnings* (£m) |
EPRA |
DPS |
NAV** per share (p) |
P/NAV |
Yield |
03/23 |
36.3 |
21.3 |
3.9 |
3.50 |
100 |
0.63 |
5.6 |
03/24e |
36.6 |
20.5 |
3.8 |
3.50 |
96 |
0.64 |
5.6 |
03/25e |
37.8 |
22.0 |
4.0 |
3.60 |
97 |
0.63 |
5.7 |
03/26e |
39.0 |
23.3 |
4.3 |
3.70 |
98 |
0.63 |
5.9 |
Note: *EPRA earnings exclude revaluation gains/losses and other exceptional items. **NAV measure is net tangible assets (NTA), currently the same as IFRS NAV.
The sale of Angel Gate follows significant work undertaken by the company during 2023 when it identified an opportunity to secure planning consent for conversion of part-vacant office property to residential use. It was brought to market earlier this year and the agreed consideration reflects a 5% premium to the Q323 valuation of £28.3m. Upon completion, the portfolio office weighting will reduce from 30% to 28% and occupancy will increase from 90% to 91%.
Part of the proceeds (£16.4m) will be used to repay in full the drawings from the floating rate revolving credit facility (RCF), currently costing 6.8% pa. As a result, all borrowing will be long term, with an average fixed rate of 3.7%, and a first maturity in 2031. On repayment, the LTV will reduce from 28% to 25%. The company will consider options for the remaining proceeds of £13.2m following completion of the disposal, dependent upon prevailing market conditions and investment opportunities.
With occupancy of 50%, Angel Gate is Picton’s largest single void, and is generating annual rental income, net of property costs, of £0.7m. This is more than offset by the current annualised cost of the RCF.
Re-purposing plans underway at other properties are aimed at further repositioning the portfolio away from the office sector, which is facing a number of structural challenges, removing significant portfolio voids and providing additional options for accretive capital recycling. At Longcross in Cardiff (12% of the H124 portfolio void), contracts have been exchanged for its sale to an experienced purpose-built student accommodation developer. Having achieved vacant possession in one of the four buildings at Charlotte Terrace in London W14 (11% of the H124 portfolio void), a planning application has been submitted for its alternative residential use.
In a separate announcement, Picton has confirmed Saira Johnston’s appointment to the board as CFO, which took effect on 1 April.
There are no changes to our forecasts. FY23 results are scheduled for release on 23 May 2024.
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Research: Healthcare
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