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.
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Outlook
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Flash note
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Update
Andrew Dewhirst
FD
Lena Wilson
Chairman
Michael Morris
CEO
Saira Johnston
CFO
Forecast net debt (£m)
175
Forecast gearing ratio (%)
32
% | 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 |
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 |