Picton Property cuts debt as shareholders make 25% returns
Picton Property Income has released results for the year ended 31 March 2017. These show:
- An increase in EPRA NAV per share of 6.0%, to 82 pence per share
- Income profit increased by 30% to GBP25.8 million
- Total return of 10.4%
- Shareholder total return of 25.6%
- Dividend increase of 3% in February 2017 to 3.4 pence per share per annum
- Dividend cover of 144%, or 115% prior to one-off exceptional income of GBP5.3 million
Stronger Balance Sheet and lower finance costs
- Total debt reduced by 18% to GBP204.6 million
- Repaid GBP29.1 million of 7.25% zero dividend preference shares in full
- Net gearing reduced to 27.4% from 34.6%
- Weighted average interest rate now 4.2% from 4.4%
- Established new GBP27 million revolving credit facility
- Access to over GBP50 million of committed but undrawn debt facilities
Positive valuation and income growth
- Like-for-like valuation increase of 3.0%
- Like-for-like passing rent at 31 March 2017 increased by 4.4% to GBP 40.0 million
- Like-for-like ERV growth of 3.3% with total portfolio ERV of GBP45.9 million
Continue to outperform MSCI IPD Quarterly Benchmark
- Total property return of 9.9%, outperforming benchmark of 4.6%
- Income return of 6.7%, outperforming benchmark of 4.7%
- Total property return and income return outperformance ahead of MSCI IPD over 1, 3, 5 & 10 years
Maintained focus on asset management
- Occupancy at 94%, ahead of the MSCI IPD Quarterly Benchmark of 93%
- 35 lettings completed securing GBP3.2 million of additional annual income, on average 6.9% above March 2016 ERV
- 23 lease renewals and re-gears retaining GBP1.2 million per annum, on average 5.7% above March 2016 ERV
Ongoing repositioning of portfolio
- Sold two central London assets for GBP45 million, on average 4% above the March 2016 valuation
- Sold four non-core assets for GBP7 million, on average 41% above the March 2016 valuation
- Invested GBP2.8 million into refurbishment projects across portfolio
- Increased average lot size by 4.4% to GBP11.8 million
Picton Chairman, Nicholas Thompson, commented: “Picton has continued to deliver positive results for shareholders, with both an increase in net assets and earnings. As a result the Board was pleased to announce an increase in the covered dividend earlier this year. The Company is well placed, reflecting its current portfolio, asset allocation, reduced gearing and low void position to take advantage of opportunities that emerge.”
Michael Morris, Chief Executive of Picton Capital, commented: “We have yet again outperformed the MSCI IPD Quarterly Benchmark, extending our long term record of outperformance over 1, 3, 5 and 10 years. Recent activity within the portfolio, both in terms of letting and disposal activity, is encouraging, improving cash flow and supporting NAV growth respectively. Looking ahead we see scope to improve income further by resetting rents to market levels, improving occupancy and capturing fixed rental uplifts in existing leases.”
PCTN : Picton Property cuts debt as shareholders make 25% returns