Picton Property Income - Edison Group

Overview
Price performance
Financials
Research
Thematics

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

18.06.24

Picton Property Income — Organic growth accelerating

Real Estate |
Flash note

02.05.24

Picton Property Income — Unlocking value to drive DPS growth

Real Estate |
Flash note

09.04.24

Picton Property Income — Accretive portfolio repositioning

Real Estate |
Update

31.01.24

Picton Property Income — Capturing rent potential in Q3

Sector

Real Estate

Equity Analyst

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

Update

Real Estate

07.12.22

Picton Property Income — Income is now the driver of returns

Flash note

Real Estate

27.07.22

Picton Property Income — Strong returns continued through Q123

Outlook

Real Estate

20.06.22

Picton Property Income — Record FY22 with positive outlook

edison tv

Real Estate

14.06.22

Picton Property Income – executive interview

Flash note

Real Estate

27.05.22

Picton Property Income — Strong FY22 builds on long-term record

Update

Real Estate

04.04.22

Picton Property Income — Positive leasing events and refinancing

Update

Real Estate

31.01.22

Picton Property Income — Strong Q322 returns and dividend increase

research

23.11.21

Picton Property Income — Strong H122 with good growth potential

edison tv

Real Estate

23.11.21

Interview with Michael Morris, CEO of Picton Property Income

Update

Real Estate

01.10.21

Picton Property Income — Accretive industrial acquisition

Update

Real Estate

04.08.21

Picton Property Income — Strong start to FY22

edison tv

Real Estate

23.06.21

Picton Property Income – executive interview

Outlook

Real Estate

23.06.21

Picton Property Income — Positive outcome in a challenging year

Update

Real Estate

01.02.21

Picton Property Income — Strong Q3 NAV growth and further DPS uplift

Outlook

Real Estate

11.12.20

Picton Property Income — Resilient performance with positive returns

Update

Real Estate

04.08.20

Picton Property Income — Reinstating forecasts following robust Q121

Update

Real Estate

10.07.20

Picton Property Income — Defensively positioned with embedded potential

Flash note

Real Estate

01.06.20

Picton Property Income — Maintaining balance sheet strength and flexibility

Update

Real Estate

16.04.20

Picton Property Income — COVID-19 punctuated a positive Q420

Update

Real Estate

03.02.20

Picton Property Income — 2.6% third-quarter NAV total return

Update

Real Estate

27.11.19

Picton Property Income — Delivering income while investing for growth

edison tv

Real Estate

19.11.19

Executive interview – Picton Property Income

Update

Real Estate

01.10.19

Picton Property Income — Portfolio progress continuing

Outlook

Real Estate

29.07.19

Picton Property Income — Aiming for consistent outperformance

edison tv

Real Estate

29.05.19

Executive interview – Picton Property Income

research

Real Estate

29.01.19

Picton Property Income — Positive income-driven returns continuing

Update

Real Estate

20.11.18

Picton Property Income — Portfolio outperformance continuing

edison tv

Real Estate

19.11.18

Executive interview – Picton Property Income

Update

Real Estate

30.07.18

Picton Property Income — Capital and income returns continuing

Outlook

Real Estate

25.06.18

Picton Property Income — FY18 builds on successful track record

edison tv

Real Estate

14.06.18

Executive interview – Picton Property Income

Update

Real Estate

26.01.18

Picton Property Income — Strong total returns continue

Update

Real Estate

30.11.17

Picton Property Income — Diversified and consistent

edison tv

Real Estate

27.11.17

Executive interview – Picton Property Income

Update

Real Estate

17.08.17

Picton Property Income — Accretive reinvestment

Update

Real Estate

03.08.17

Picton Property Income — Progress continues

edison tv

Real Estate

13.07.17

Executive interview – Picton Property Income

Initiation

Real Estate

26.06.17

Picton Property Income — Consistent outperformance