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Picton Property Income (LSE: PCTN)

Last close As at 02/07/2024

GBP0.68

▲ 0.50 (0.74%)

Market capitalisation

GBP375m

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, supporting rental growth across much of the market. Capital values are significantly down from the 2022 peak and should benefit from the expected decline in interest rates.

Latest Insights

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Real Estate | Outlook

Picton Property Income — Organic growth accelerating

Real Estate | Flash note

Picton Property Income — Unlocking value to drive DPS growth

Real Estate | Flash note

Picton Property Income — Accretive portfolio repositioning

Real Estate | Update

Picton Property Income — Capturing rent potential in Q3
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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

  • Saira Johnston

    CFO

Balance Sheet

Forecast net debt (£m)

175

Forecast gearing ratio (%)

32

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 2.1 8.1 (2.2)
Relative 3.4 4.3 (11.6)
52 week high/low 74.4p/60.3p

Financials

Picton’s FY24 financial performance was robust, with EPRA earnings up 2% and the company’s confidence in the prospects is demonstrated by a 5.7% increase in quarterly DPS to 0.925p or an annualised 3.7p. Letting activity has remained strong and rents continue to increase. There is strong reversion potential in the portfolio, while accretive asset management will have a noticeable impact on current year earnings. The sale of Angel Gate has removed the largest void in the portfolio and reduced office exposure. The proceeds have enabled the repayment of more expensive debt, with the savings significantly outstripping net income foregone. Further projects are underway. At the portfolio level, Picton outperformed its MSCI benchmark, as it has done for 11 consecutive years, with upper-quartile performance since launch in 2005.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2023A 36.3 30.3 (89.5) 3.9 17.5 N/A
2024A 37.9 30.7 (4.8) 4.0 17.1 N/A
2025E 38.3 31.5 41.0 4.2 16.2 N/A
2026E 39.9 32.8 41.0 4.4 15.5 N/A

Research

Flash note

Real Estate

Picton Property Income — Unlocking value to drive DPS growth

Flash note

Real Estate

Picton Property Income — Accretive portfolio repositioning

Real Estate

Outlook

Picton Property Income — Organic growth accelerating
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Thematics

thematic

Real Estate

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thematic

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thematic

Consumer

IPO apocalypse

thematic

TMT

ESG, moving beyond the box tick
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