Half Year Results
Picton announces its half year results for the period to 30 September 2022.
Financial results
- Net assets of £636 million, or 117p per share, a decrease of 3.2%
- Stable EPRA earnings of £10.7 million, or 2.0p per share
- Loss for the period of £10.4 million
- Dividends paid of £9.5 million with dividend cover of 112%
Defensive capital structure
- Loan to value ratio of 24%
- Total borrowings of £225.2 million, with 95% at fixed rates of interest
- Weighted average interest rate of 3.7% with a weighted average debt maturity of 8.9 years
- Undrawn revolving credit facility of £38.1 million available
Valuation impacts mitigated by rental growth and asset management
- Total property return of -0.2%, outperforming the MSCI UK Quarterly Property Index of -1.3%
- Like-for-like portfolio valuation decrease of 1.9%
- Like-for-like increase in estimated rental value (ERV) of 5%
- £2.1 million invested into asset upgrading and repositioning projects
- Completed the acquisition of two freehold mixed-use properties for £19.0 million, before costs
- Occupancy of 90%, with vacancy in recent acquisitions contributing to the decline relative to March 22 (93%)
Encouraging occupational activity
- Like-for-like increase in passing rent of 3%
- 12 lettings / agreements to lease completed, securing £0.5 million per annum, in line with the March 2022 ERV
- Five lease renewals / regears completed, retaining £0.3 million per annum, 25% above the March 2022 ERV
- Eight rent reviews completed, securing an uplift of £0.1 million per annum, 1% above the March 2022 ERV
- Current pipeline of 12 new lettings totalling £1 million per annum, agreed subject to contract
| Balance sheet | 30 Sept 2022 | 31 March 2022 |
| Property valuation | £852m | £849m |
| Net assets | £636m | £657m |
| EPRA NTA per share | 117p | 120p |
| EPRA NDV per share | 123p | 119p |
| Income statement | Six months to 30 Sept 2022 | Six months to 30 Sept 2021 |
| (Loss)/profit after tax | £(10.4)m | £54.4m |
| EPRA earnings | £10.7m | £10.9m |
| Earnings per share | (1.9)p | 10.0p |
| EPRA earnings per share | 2.0p | 2.0p |
| Total return | (1.7)% | 10.2% |
| Total shareholder return | (11.4)% | 12.7% |
| Total dividend per share | 1.75p | 1.65p |
| Dividend cover | 112% | 121% |
Picton Chair, Lena Wilson CBE, commented:
“Picton has always taken a prudent approach to the management of its assets and balance sheet. Against a backdrop of multiple economic challenges impacting real estate pricing, we are in a relatively robust position with low leverage and stable EPRA earnings. Moreover, we have the flexibility and headroom to selectively take advantage of good quality earnings accretive opportunities that may arise out of the current market volatility.”
Michael Morris, Chief Executive of Picton, commented:
“We have seen positive occupational market activity within the portfolio with lettings, lease renewals and rent reviews on average 5% ahead of March estimated rental values, which has limited the impact of outward yield movement and valuation declines. Our net income is insulated from the impact of rising interest rates with 95% of our drawn debt being fixed and with an average debt maturity profile of nearly nine years. Whilst navigating current conditions the team has started to implement our net zero pathway, which is increasingly relevant at a time of rising energy costs and will make our assets more attractive to occupiers.”
This announcement contains inside information.
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 £852 million diversified UK commercial property portfolio, invested across 49 assets and with around 400 occupiers (as at 30 September 2022). 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