28 July 2021
PICTON PROPERTY INCOME
LIMITED
(“Picton”, the “Company” or the “Group”)
LEI: 213800RYE59K9CKR4497
Net Asset Value as at 30 June
2021
Picton announces a 3.2% increase in Net Asset Value for the
quarter ended 30 June 2021 and a
further 6.3% dividend increase.
Financial
Highlights
- Net assets of £545.7 million (31 March
2021: £528.2 million).
- NAV/EPRA NTA per share increased by 3.2% to 99.9 pence (31 March
2021: 96.8 pence).
- Total return for the quarter of 4.0% (31
March 2021: 2.2%).
- LTV of 20.6% (31 March 2021:
20.9%).
Operational Highlights
- Like-for-like portfolio valuation uplift of 2.9% over the
quarter.
- Completed seven lettings, across all sectors, 2% below the
March 2021 ERV with a combined annual
rent of £0.9 million.
- Secured an average increase of 21% against the previous passing
rent from six rent reviews, all in the industrial sector, with a
combined annual rent of £0.5 million which was 15% ahead of the
March 2021
ERV.
- Stable occupancy of 91% (31 March
2021: 91%).
Rent Collection
- 94% of June 2021 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 rate of 95% for the March 2021 quarter.
Dividend increased by 6.3%
- Interim dividend of 0.85 pence
per share declared and to be paid on 31
August 2021 (31 March 2021:
0.8 pence per share).
- Annualised dividend equivalent to 3.4
pence per share, delivering a dividend yield of 3.8%, based
on 26 July 2021 share price.
- Dividend cover for the quarter of 121% (31 March 2021: 122%).
Lena Wilson CBE, Chair of Picton,
commented:
“This is the fourth consecutive quarter that we have delivered
growth in net assets. In addition, we have taken the positive
step to announce today a further 6.3% dividend increase.”
Michael Morris, Chief Executive of Picton,
commented:
“We’ve had another successful quarter and are encouraged by our
pipeline of activity across all sectors. This reflects improving
sentiment as lockdown restrictions ease and as market conditions
normalise.”
THIS ANNOUNCEMENT CONTAINS INSIDE
INFORMATION FOR THE PURPOSES OF THE UK MARKET ABUSE REGULATION
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 £702 million diversified UK commercial property
portfolio, invested across 46 assets and with around 350 occupiers
(as at 30 June 2021).
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 30 June 2021, was £545.7 million, reflecting
99.9 pence per share, an increase of
3.2% over the quarter, or 4.0% on a total return basis.
The NAV attributable to the ordinary shares is calculated under
IFRS and incorporates the independent market valuation as at
30 June 2021, including income for
the quarter, but does not include a provision for the dividend this
quarter, which will be paid in August
2021.
|
30 Jun 2021
£million |
31 Mar 2021
£million |
31 Dec 2020
£million |
30 Sept 2020
£million |
Investment properties* |
687.5 |
669.2 |
662.5 |
650.6 |
Other assets |
23.2 |
21.5 |
23.2 |
22.6 |
Cash |
21.2 |
23.4 |
22.6 |
18.9 |
Other liabilities |
(20.3) |
(19.7) |
(20.8) |
(19.4) |
Borrowings |
(165.9) |
(166.2) |
(166.5) |
(166.8) |
Net Assets |
545.7 |
528.2 |
521.0 |
505.9 |
Net Asset Value per
share |
99.9p |
96.8p |
95.5p |
92.7p |
*The investment property valuation is stated net of lease
incentives and includes the value of owner-occupied property.
The movement in Net Asset Value can be summarised as
follows:
|
Total
£million |
Movement
% |
Per share
Pence |
NAV at 31 March 2021 |
528.2 |
|
96.8 |
Movement in property values |
16.5 |
3.1 |
3.0 |
Net income after tax for the
period |
5.3 |
0.9 |
0.9 |
Dividends paid |
(4.4) |
(0.8) |
(0.8) |
Other |
0.1 |
- |
- |
NAV at 30 June 2021 |
545.7 |
3.2 |
99.9 |
DIVIDEND DECLARATION
A separate announcement has been released today declaring an
increased dividend of 0.85 pence per
share in respect of the period 1 April
2021 to 30 June 2021
(1 January 2021 to 31 March 2021: 0.8
pence). This reflects a 6.3% uplift on the preceding
quarter.
Dividend cover over the quarter was 121% (31 March 2021: 122%).
RENT COLLECTION
The Group has received 87% of the rent for the June quarter, which
increases to 94% including agreed monthly payments. These
collection figures are in line with the March numbers calculated
after the same number of days.
The table below sets out the rent collection statistics for the
June quarter, analysed by sector.
|
Total |
Industrial |
Offices |
Retail & Leisure |
Collected |
87% |
89% |
90% |
74% |
Moved to monthly |
7% |
8% |
1% |
14% |
Outstanding |
6% |
3% |
9% |
12% |
DEBT
Total borrowings at 30 June 2021 were
£165.9 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 20.6% (31 March 2021: 20.9%).
The weighted average debt maturity profile of the Group is
approximately 8.7 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 2.9% or £19.6 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
Allocation |
Like-for-like
Valuation Change |
Industrial |
53.9% |
4.8% |
South East |
40.6% |
|
Rest of UK |
13.3% |
|
|
|
|
Offices |
35.0% |
0.2% |
London City and West End |
8.5% |
|
Inner and Outer London |
4.7% |
|
South East |
10.7% |
|
Rest of UK |
11.1% |
|
|
|
|
Retail and Leisure |
11.1% |
2.3% |
Retail Warehouse |
6.9% |
|
High Street – Rest of UK |
2.8% |
|
Leisure |
1.4% |
|
Total |
100% |
2.9% |
Strong investment and occupational demand in the industrial
sector again led to positive performance. High occupancy within the
portfolio is driving rental growth, which we are capturing through
lease events and active management.
We secured a further occupier for all of the remaining office
space at Stanford Building in London WC2, at an average rental of £80 per sq
ft, which is 3% below the March 2021
ERV, but reflects a longer term 10-year lease commitment. Despite
this, office demand in central London for smaller suites remains muted.
Conversely, we are seeing good demand in the regions, with space
under offer at a number of buildings. Overall, the office valuation
was flat over the quarter.
The positive performance in the retail and leisure sector was
driven by retail warehousing which offset a small decline in the
high retail street assets over the quarter. Having secured planning
permission for a change of use to offices, we secured HM Government
for an end of terrace unit at Parc Tawe, Swansea. The letting secures £0.1m of income
for a minimum three year term, in line with March 2021 ERV. The scheme is now fully let.
As at 30 June 2021, the portfolio
had a net initial yield of 4.5% (allowing for void holding costs)
or 4.9% (based on contracted net income) and a net reversionary
yield of 6.0%. The weighted average unexpired lease term, based on
headline rent, was 4.9 years.
Occupancy was maintained at 91%.
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 |
Datapoint, Cody Road,
E16 |
Industrial |
London |
Tower Wharf, Cheese
Lane, Bristol |
Office |
South West |
Shipton Way, Rushden,
Northants |
Industrial |
East Midlands |
Lyon Business Park,
Barking |
Industrial |
Outer London |
50 Farringdon Road,
EC1 |
Office |
London |
Colchester Business
Park, Colchester |
Office |
South East |
MARKET BACKGROUND
According to the MSCI Monthly UK Property Index, the All
Property total return was 4.0% for the quarter to June 2021, compared to 2.3% for the previous
quarter.
Capital growth was 2.7% (March
2021: 1.0%) and rental growth was 0.4% for the quarter
(March 2021: 0.0%). 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 |
6.7% |
7 |
0 |
Office |
0.0% |
4 |
6 |
Retail |
0.7% |
9 |
10 |
All
Property |
2.7% |
20 |
16 |
MSCI rental growth
|
|
Number of MSCI segments |
|
Quarterly
growth |
Positive
growth |
Negative
growth |
Industrial |
1.8% |
7 |
0 |
Office |
0.1% |
5 |
5 |
Retail |
-1.0% |
0 |
19 |
All
Property |
0.4% |
12 |
24 |
ENDS