Picton Property has reported impressive annual results for the year to 31 March 2022, with profit after tax of £147m – its highest since launching in 2005.
Net asset value (NAV) was up a massive 24.4% over the 12 months to £657m or 120p per share (2021: £528m and 97p), helped by a 21% like-for-like valuation uplift in its portfolio to £849m.
EPRA earnings per share was 3.9p, while the group paid dividends of 3.4p.
The group’s loan to value (LTV) ratio was maintained at 21%, and it refinanced an existing debt facility during the year increasing borrowings by £49m while reducing the cost of debt and extending the term.
Portfolio
The group’s diversified portfolio now comprises 60% industrial, 30% office and 10% retail and leisure. The portfolio’s passing rent was up 2.1% to £38.7m, while the estimated rental value (ERV) increased 5.4% in the year to £49.8m.
During the year the company bought two industrial assets for £25m and sold a retail asset for £0.7m (16% ahead of March 2021 valuation).
Occupancy increased to 93% (2021: 91%), off the back of 76 lease transactions including: 34 new lettings, 8% ahead of ERV; 21 lease renewals or regears, 3% ahead of ERV; 12 rent reviews, 7% ahead of ERV; and nine other asset management transactions.
Energy performance
The company improved the EPC ratings across its portfolio during the year, with 71% now rated A-C (2021: 64%).
Picton chair, Lena Wilson CBE, said:
“We are delighted to announce a record set of results, which are reflective of the work and dedication of the team during a period which was still impacted by disruption caused during lockdown. We have restored the dividend to pre-pandemic levels and our recent acquisitions will further help to improve our earnings. We remain focused on delivering long-term shareholder value, reinforced by our recently announced net zero carbon commitments.”
Michael Morris, chief executive of Picton, said:
“This year we have delivered strong financial performance driven by a portfolio that has seen a marked uplift in value. We have again outperformed the MSCI UK Quarterly Property Index, delivering upper quartile performance since our launch in 2005. Our lettings success and asset management have improved occupancy across our industrial, office and retail assets. We will continue to invest into our assets, ensuring they remain attractive to occupiers, enhancing their sustainability credentials and protecting both income and value.”
PCTN : Record results for Picton Property