Picton Property Income has announced results for the year ended 31 March 2016. The EPRA NAV increased by 12.7% to 77 pence per share. EPRA earnings increased by 30.1% to GBP19.9 million, equivalent to EPS of 3.7 pence per share (up 8.3% on the year before). The dividend has been increased by 10% to 3.3p. The total return was 17.9%.
The chairman says they continue to assess the efficiency of the overall corporate structure and whether conversion to a UK REIT would benefit shareholders. However they believe the current structure remains appropriate, unless and until they are able to identify clear advantages in converting.
The portfolio produced a total property return of 14.3%, out-performing the industry quarterly benchmark return of 11.3%. The chairman said that, since March 2015, they have invested a further GBP73 million into the property
market, through five acquisitions and have made three disposals totalling GBP9.4 million. The portfolio is now valued at GBP655 million and is 21% larger than last year, reflecting both valuation gains and new acquisitions. They continue to have an overweight position to the industrial, warehouse and logistics sectors, whilst at the same time remaining underweight to the underperforming retail sector.
They say they have made some very good progress with the assets over the year, across all sectors, but have been particularly encouraged by progress at Angel Gate and also the value creation at recent acquisitions in Gloucester, Chatham and Radlett. The portfolio now comprises 58 assets, with around 400 occupiers and the average lot size has increased to GBP11.3 million. As a result of the new acquisitions, and rental growth in the portfolio, the passing rent has risen to GBP40.4 million, up from GBP34.6 million a year ago, with an estimated rental value of GBP47.6 million.
The portfolio’s capital value for the year grew by 9%. Regional office values rose by 15%, with London offices growing by 19%. Industrial values grew by 9% and retail and leisure by 1%. Overall, like-for-like growth in the portfolio’s estimated rental values was 5% during the year to March 2016. Estimated rental values in the office sector grew by 10% over the year, predominantly driven by growth in London of 20%. Industrial estimated rental values grew by 6% with retail and leisure declining by 1%. Portfolio occupancy rose from 95% to 96%.
PCTN : Good year for Picton Property on new acquisitions and Angel Gate