Picton Property will review the level of its dividend due to the covid-19 pandemic.
The company has collected 71% of rents due for the current quarter, as at 7 April 2020. Short-term monthly payment plans have also been agreed with some tenants, which brings this figure to 80%.
Picton, which owns a £665m diversified UK commercial property portfolio, of which 82% is invested in the industrial and office sectors, said it was working to address individual occupier requests.
On its dividend, the group said the board would review the level of the forthcoming dividend, due to be paid in May 2020, at its next meeting, which will take place towards the end of April.
Valuations
Ahead of the company’s annual results for the year to 31 March 2020, which are due to be announced in June 2020, Picton said its 47-asset portfolio had been valued at £665m.
This is a drop of 0.8% over the quarter to the end of March 2020.
Picton’s valuers, CBRE, have confirmed that the valuation is subject to a ‘material uncertainty clause’. This means that “a higher degree of caution should be attached to valuations than would normally be the case” due to the uncertainty caused by the covid-19 pandemic and the lack of transactional evidence to base the values on.
Balance sheet
The company has no short-term refinancing events and the average debt maturity profile on drawn debt is 10 years.
Overall, Picton’s loan-to-value (LTV) is 22% as at 31 March 2020 and on average across the drawn facilities rental income or asset values would have to fall by over 40% for there to be any impact on covenants.
In addition, the group said it has £36.3m of uncharged assets that could be used as additional security if required and has access to £49m of undrawn facilities.
As at 31 March 2020, the group had over £23m of cash or cash equivalents.
PCTN : Picton Property to review dividend level