Picton Property Income (LSE: PCTN)

Last close As at 18/03/2024

GBP0.63

−1.90 (−2.93%)

Market capitalisation

GBP354m

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 already c 25% down on the 2022 peak and should benefit from the expected decline in interest rates.

Latest Insights

View More

Real Estate | Update

Picton Property Income — Capturing rent potential in Q3

Real Estate | Update

Picton Property Income — Focused on growing earnings

Real Estate | Flash note

Picton Property Income — Value-enhancing asset management

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)

211

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 2.9 (2.6) (8.1)
Relative (0.5) (5.6) (10.8)
52 week high/low 79.4p/61.6p

Financials

The Q324 DPS of 0.875p was 108% covered by EPRA earnings with leasing activity locking in significant rental increases, all at or above estimated rental value and/or passing rent, while overall occupancy was unchanged at 90%, or 92% adjusted for the alternative use strategies being undertaken at two properties. Asset management and a strong weighting to better-performing industrial assets (59% by value) mitigated the impact of market-wide outward yield movements on valuations and the 1.5% like-for-like decline in portfolio values was less than the 2.7% negative movement in MSCI monthly data. Net asset value (NAV) per share was 2.5% lower at 96p and, adjusted for DPS paid, the NAV total return was -1.6%. Although merger talks with UKCM were halted, Picton continues to believe that there are strategic and financial benefits to combining complementary businesses, including economies of scale, increased diversification, and enhanced earnings.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2022A 35.4 29.7 147.0 3.9 16.6 12.6
2023A 36.3 30.3 (89.5) 3.9 16.6 11.5
2024E 36.6 30.0 8.9 3.8 17.1 13.4
2025E 37.8 30.9 22.0 4.0 16.2 11.2

Thematics

thematic

Real Estate

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thematic

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