Picton Property Income (PCTN) H1 2026 earnings summary

Executive summary

• Profit after tax rose to £15.1 million for the six months to September 2025, with a total return of 3.4% and total shareholder return of 12.1%, outperforming the MSCI UK Quarterly Property Index.

• Net asset value (NAV) per share increased by 2% to 102p, supported by capital growth and accretive share buybacks.

• Portfolio repositioning and capital recycling focused on reducing office exposure and growing industrial holdings, now at 68% of the portfolio.

• Share buyback programme expanded, with 13.6 million shares repurchased at a 25% discount to NAV.

• Maintained a strong balance sheet with conservative leverage and all debt at fixed rates.

Financial highlights

• EPRA earnings per share increased to 2.1p, with dividends paid of 1.9p per share and dividend cover at 106%.

• Net property income was £18.0 million, with administrative expenses of £3.4 million and finance costs of £4.1 million.

• Like-for-like portfolio valuation increased by 0.6% over the period.

• Total NAV return was 3.4% for the period.

• EPRA Net Disposal Value per share at 106p.

Outlook and guidance

• Significant reversionary potential of £10 million above contracted rent, with £5.3 million from vacant space and £4.7 million from resetting rents.

• Major lease events expected in FY 2026 and FY 2027, with opportunities to unlock rental upside from vacancy and rent resets.

• Recent lettings post-period end were 5% ahead of ERV, with a strong pipeline of deals under offer, especially in offices.

• Proceeds from office asset disposal to be redeployed into higher yielding opportunities.

• Management remains optimistic about further rental growth and capital value improvements as asset upgrades continue.