Picton Property Income's (LON:PCTN) 25 July NAV update showed that asset management initiatives have continued to add value through a series of new and renewed leases, as well as two asset disposals at 37% above their March 2017 valuations. Like-for-like valuations in the office and industrial sectors, representing 75% of the portfolio, rose over 2% and earnings of £5.3m gave 1.16x dividend cover, also contributing to NAV gains. Management continues to execute the strategy of investing in and actively managing a regional property portfolio to provide rising income and increasing capital value.
NAV update
Picton’s announcement showed that NAV rose to £452.5m or 83.8p per share in the quarter to 30 June 2017 (31 March 2017: £441.9m and 81.8p), in part due to a 1.8% like-for-like revaluation gain on the portfolio, but also with increased dividend cover (116% from 106% at 31 March 2017) from higher earnings (£5.3m vs £4.9m). A 0.85p quarterly dividend was paid and another declared, equivalent to an annual dividend of 3.4p, a 4% yield on the current share price; the quarterly total NAV return was 3.4%. The rise in NAV helped reduce net LTV to 27.0% (March 2017: 27.4%) and £51m of funds remain undrawn from the two revolving credit facilities. Combined with proceeds from two recent disposals, these provide capital for meaningful further portfolio and earnings growth.
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