Picton’s NAV per share edges upwards
Picton Property Income has reported a 0.9% uptick in NAV per share during the six months ending September.
The REIT said its unaudited net asset value per share grew to 94p from 92p in September 2018, and up from 93p at the end of March.
However, EPRA earnings per share fell to 1.9p, compared with 2.2p in the previous year. Picton highlighted that it expected this to improve as refurbishment projects complete and further lettings are achieved.
Picton Property Income has reported a 0.9% uptick in NAV per share during the six months ending September.
The REIT said its unaudited net asset value per share grew to 94p from 92p in September 2018, and up from 93p at the end of March.
However, EPRA earnings per share fell to 1.9p, compared with 2.2p in the previous year. Picton highlighted that it expected this to improve as refurbishment projects complete and further lettings are achieved.
Net profit dropped to £14.5m, down from £18.9m in the previous year.
Its portfolio was valued at £693.4m, reflecting a net initial yield of 4.9% and a reversionary yield of 6.3%. This represented a 1.2% increase on a like-for-like basis.
Within this, the industrial portfolio increased by 3.8% and the office portfolio by 1.9%, while the retail and leisure portfolio declined by 6.1%.
Total return tallied 2.8% in the first half. Industrial and office sector returns were positive for the six months to September, at 3.5% and 2.4% respectively. Retail total returns dropped by 2.4%.
Picton stated that more than 80% of the portfolio is now allocated to the stronger performing sectors, away from retail.
The firm did not acquire any properties during the six months, citing the lack availability of suitable opportunities as well as a desire to maintain a prudent gearing level.
Its loan to value ratio stands at 24.5%.
Nicholas Thompson, chairman of Picton, said: “During the last six months we have been able to further strengthen our balance sheet, increasing net assets and maintaining a covered dividend.
“Our June fundraising has enabled us to continue to invest into our portfolio, enhancing the quality of our assets for occupiers and shareholders alike.”
Michael Morris, chief executive of Picton, said: “There has been an encouraging level of activity in the portfolio over the past six months. With an estimated £9.4m of reversionary potential to be unlocked, we believe there is significant upside to come from refurbishment and leasing initiatives.”
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