Picton Prop Inc Ltd Net Asset Value as at 31 December 2020
January 28 2021 - 1:00AM
UK Regulatory
TIDMPCTN
28 January 2021
PICTON PROPERTY INCOME LIMITED
("Picton", the "Company" or the "Group")
LEI: 213800RYE59K9CKR4497
Net Asset Value as at 31 December 2020
Picton announces its Net Asset Value for the quarter ended 31 December 2020.
Financial Highlights
· Net assets of £521.0 million (30 September 2020: £505.9 million).
· NAV/EPRA NAV per share increased by 3.0% to 95.5 pence (30 September 2020:
92.7 pence).
· NAV total return for the quarter of 3.7% (30 September 2020: 1.3%).
· LTV of 21.3% (30 September 2020: 22.4%).
Operational Highlights
· Like-for-like portfolio valuation uplift of 2.7% over the quarter.
· Completed six lettings, all in the office sector, 4% ahead of the
September 2020 ERV with a combined annual rent of £0.7 million.
· Secured an average increase of 15% against the previous passing rent
from eight lease events (six renewals and two rent reviews), with a combined
annual rent of £0.7 million which was 2% ahead of the September 2020
ERV.
· Disposal of retail asset for £3.98 million completed with high street
retail exposure reduced to 3%.
· Stable occupancy of 90% (30 September 2020: 90%).
Rent Collection
· 87% of December 2020 rents have been collected or are expected to be
received under monthly payment plans. The collection rate is expected to
improve further over the coming weeks.
· Rent collection rates of 95% for September 2020, 95% for June 2020 and
90% for March 2020.
· In respect of the remaining rent outstanding, ongoing discussions and
active management opportunities are expected to further improve either the
income or capital position of the portfolio. The NAV includes a provision of £
2.6 million in respect of outstanding sums.
Increased Dividend Declared
· Dividend of 0.8 pence per share declared and to be paid on 26 February
2021 (30 September 2020: 0.7 pence per share).
· Annualised dividend equivalent of 3.2 pence per share, delivering a
dividend yield of 4.1%, based on 26 January 2021 share price.
· Dividend cover for the quarter of 122% (30 September 2020: 178%).
Nick Thompson, Chairman of Picton, commented:
"I am pleased that we have been able to deliver such a strong uplift in net
assets during the period, which combined with our improving operating
performance, including resilient rent collection, gives us the confidence to
increase the dividend further, following the increase announced just last
November."
Michael Morris, Chief Executive of Picton, commented:
"This has been the second consecutive quarter where we have delivered portfolio
growth, with the largest NAV uplift since December 2017, driven principally by
our exposure to South East industrial assets and our heavily underweight retail
exposure."
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014
For further information:
Tavistock
Jeremy Carey/James Verstringhe, 020 7920 3150,
james.verstringhe@tavistock.co.uk
Picton
Michael Morris, 020 7011 9980, michael.morris@picton.co.uk
Note to Editors
Picton, established in 2005, is a UK REIT. It owns and actively manages a £675
million diversified UK commercial property portfolio, invested across 46 assets
and with around 350 occupiers (as at 31 December 2020). Through an occupier
focused, opportunity led approach to asset management, Picton aims to be one of
the consistently best performing diversified UK focused property companies
listed on the main market of the London Stock Exchange.
For more information please visit: www.picton.co.uk
NET ASSET VALUE
The unaudited Net Asset Value ('NAV') of Picton, as at 31 December 2020, was £
521.0 million, reflecting 95.5 pence per share, an increase of 3.0% over the
quarter, or 3.7% on a total return basis.
The NAV attributable to the ordinary shares is calculated under IFRS and
incorporates the independent market valuation as at 31 December 2020, including
income for the quarter, but does not include a provision for the dividend this
quarter, which will be paid in February 2021.
31 Dec 2020 30 Sept 2020 30 Jun 2020 31 Mar 2020
£million £million £million £million
Investment properties* 662.5 650.6 648.9 654.5
Other assets 23.2 22.6 23.0 19.1
Cash 22.6 18.9 19.4 23.6
Other liabilities (20.8) (19.4) (20.9) (20.4)
Borrowings (166.5) (166.8) (167.2) (167.5)
Net Assets 521.0 505.9 503.2 509.3
Net Asset Value per share 95.5p 92.7p 92.2p 93.4p
*The investment property valuation is stated net of lease incentives.
The movement in Net Asset Value can be summarised as follows:
Total Movement Per share
£million % Pence
NAV at 30 September 2020 505.9 92.7
Movement in property values 14.0 2.8 2.6
Net income after tax for 4.7 0.9 0.9
the period
Dividends paid (3.8) (0.7) (0.7)
Other 0.2 - -
NAV at 31 December 2020 521.0 3.0 95.5
DIVID DECLARATION
A separate announcement has been released today declaring an increased dividend
of 0.8 pence per share in respect of the period 1 October 2020 to 31 December
2020, reflecting a 14% uplift on the preceding quarter (1 July 2020 to 30
September 2020: 0.7 pence).
Dividend cover over the quarter was 122% (30 September 2020: 178%), including
the higher dividend paid in November.
RENT COLLECTION
The Group has received 76% of the rent for the December quarter, which
increases to 87% including agreed monthly payments. These collection figures
are slightly better than the September numbers calculated after the same number
of days.
The table below sets out the rent collection statistics for the December
quarter, analysed by sector.
Total Industrial Offices Retail &
Leisure
Collected 76% 72% 85% 64%
Moved to monthly 11% 14% 0% 26%
Outstanding 13% 14% 15% 10%
A provision of £2.6m has been made in relation to all outstanding sums, this
has reduced the NAV per share by 0.4p.
DEBT
Total borrowings at 31 December 2020 were £166.5 million, drawn under long-term
fixed rate facilities. The net loan to value ratio, calculated as total debt
less cash, as a proportion of gross property value, is 21.3% (30 September
2020: 22.4%).
The weighted average debt maturity profile of the Group is approximately 9.2
years and the weighted average interest rate is 4.2%.
Picton has £50 million available through its undrawn revolving credit facility.
PORTFOLIO UPDATE
Like-for-like, the portfolio valuation increased over the quarter by 2.7% or £
17.5 million, and £1.7 million of capital expenditure was incurred across the
portfolio during the period. The valuation movements over the quarter are shown
below:
Sector Portfolio Like-for-like
Allocation Valuation Change
Industrial 52.4% 7.9%
South East 39.4%
Rest of UK 13.0%
Offices 36.4% (2.5)%
London City and West End 8.7%
Inner and Outer London 5.1%
South East 11.1%
Rest of UK 11.5%
Retail and Leisure 11.2% (2.5)%
Retail Warehouse 6.7%
High Street - Rest of UK 3.0%
Leisure 1.5%
Total 100% 2.7%
Positive performance continued in the industrial sector on the back of high
occupancy, proven rental growth and strong investor demand, leading to the
sector repricing.
The ongoing refurbishment of Stanford Building in Covent Garden has
substantially completed, with the first office letting secured 3% ahead of the
September 2020 ERV. Other key office lettings completed in Cardiff, Bristol and
Chatham, Kent, 4% ahead of the September ERV. Despite this, office demand was
more muted, leading to a valuation decline in this sector.
The decrease in the retail and leisure sector was driven by the continued
repricing and impact of Covid-19. Retail warehousing was less impacted than
High Street retail assets.
As at 31 December 2020, the portfolio had a net initial yield of 4.7% (allowing
for void holding costs) or 4.8% (based on contracted net income) and a net
reversionary yield of 6.2%. The weighted average unexpired lease term, based on
headline rent, was 5.0 years.
Occupancy was maintained at 90%.
The top ten assets, which represent 56% of the portfolio by capital value, are
detailed below.
Asset Sector Location
Parkbury Industrial Estate, Radlett Industrial South East
River Way Industrial Estate, Harlow Industrial South East
Angel Gate, City Road, EC1 Office London
Stanford Building, Long Acre, WC2 Office London
Tower Wharf, Cheese Lane, Bristol Office South West
Datapoint, Cody Road, E16 Industrial London
Shipton Way, Rushden, Northants Industrial East
Midlands
50 Farringdon Road, EC1 Office London
Lyon Business Park, Barking Industrial Outer
London
Colchester Business Park, Colchester Office South East
MARKET BACKGROUND
According to the MSCI Monthly UK Property Index, the All Property total return
was 2.1% for the quarter to December 2020, compared to 0.7% for the previous
quarter.
Capital growth was 0.8% (September 2020: -0.7%) and rental growth was -0.4% for
the quarter (September 2020: -0.7%). A more detailed breakdown of the MSCI
Monthly Digest is shown below:
MSCI capital growth
Number of MSCI segments
Quarterly growth Positive growth Negative growth
Industrial 5.4% 7 0
Office -1.2% 0 10
Retail -2.4% 1 19
All Property 0.8% 8 29
MSCI rental growth
Number of MSCI segments
Quarterly growth Positive growth Negative growth
Industrial 1.1% 6 1
Office -0.1% 5 5
Retail -2.1% 0 20
All Property -0.4% 11 26
ENDS
END
(END) Dow Jones Newswires
January 28, 2021 02:00 ET (07:00 GMT)
Picton Property Income Ld (LSE:PCTN)
Historical Stock Chart
From Apr 2024 to May 2024
Picton Property Income Ld (LSE:PCTN)
Historical Stock Chart
From May 2023 to May 2024