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LondonMetric and Schroder REIT up offer for Picton

Companies

LondonMetric Property (LMP) and Schroder REIT (SREI) have increased their offer for Picton Property (PCTN) by 0.8%.

The consortium announced a revised exchange ratio on SREI’s portion of the deal to 0.894 new SREI shares per PCTN share from 0.881. The LMP exchange ratio of 0.190 is unchanged.

This has had the effect of increasing the value of the deal to 77p per PCTN share, from 76.4p (based on the closing share prices of LMP and SREI of 187.8p and 46.2p respectively on 9 July 2026).

This still falls short of the 77.5p that PCTN was trading on when it was put up for sale on 12 January, and is an implied 8.5% discount to net tangible assets (NTA).

Despite this, PCTN’s board has reaffirmed its support for the offer and said it was minded to unanimously recommend it to PCTN shareholders. The proposed offer has the backing of PCTN’s largest shareholder, TR Property (TRY).

It points to a number of benefits including earnings accretion of 39.4% on a pro-forma basis and an increase in dividend income for PCTN shareholders of 47.4%.

SREI results

The news comes on the same day the SREI published annual results. Net asset value (NAV) fell 1.1% to 60.9p per share over the year to 31 March. With dividends, this resulted in a underlying total return of 4.8% (less than half its 11% return in the 2025 financial year).

Heightened geopolitical volatility in the second half of the period impacted investor sentiment and valuation assumptions, resulting in a marginal fall in its portfolio valuation to £474.6m.

Earnings per share were down slightly to 3.4p, from 3.5p, leaving the 3.6p annual dividend uncovered.

The company made 71 new lettings, rent reviews and renewals during the year across 596,000 sq ft adding £6.3m to the rent roll. Portfolio vacancy reduced to 9.8% – the lowest level since 2022.

Portfolio total return over the year was below its MSCI benchmark (5.4% versus 5.7%) but its three-year numbers remain comfortably ahead at 5.9% per annum versus 3.4% per annum.

Richard Williams, senior analyst at QuotedData, said: “It’s good to see the LMP/SREI consortium bump up its proposed offer, but a 0.8% uplift that is still below PCTN’s share price when it put itself up for sale still feels underwhelming. The current terms continue to favour the acquirers, and some shareholders may think that they are being asked to share too much of PCTN’s potential upside.”

Written By Richard Williams

Senior Analyst

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