Picton Property Income (PCTN) H2 2025 earnings summary

Executive summary

• Achieved strong financial results with £37m profit after tax and 8.1% total return for FY 2024/25, reversing prior year losses and marking 12 consecutive years of MSCI outperformance.

• Portfolio is diversified across industrial (nearly two-thirds), office (a quarter), and retail/leisure (remainder), valued at £723m with 47 assets.

• Reduced office exposure by a fifth through disposals, reinvesting proceeds into upgrades, debt repayment, and share buybacks.

• Increased occupancy to 94% and continued focus on income and value growth.

Financial highlights

• Reported profit after tax of £37m and total return of just over 8% for the year ending 31 March 2025, compared to a £5m loss in 2024.

• EPRA earnings grew to £23m (4.2p per share), with dividends paid totaling just over £20m (3.7p per share) and a dividend cover of 113%.

• Net asset value increased 4% to £533m, NAV per share up to 100p from 96p, with valuation gains of 3.8% mainly from industrial assets.

• Share buybacks totaled £7.5m at a 33% discount to NAV, accretive to both NAV and earnings.

• Loan-to-value ratio at 24%, all debt now fixed at an average rate of 3.7% with maturities in 2031 and 2032.

Outlook and guidance

• Focus on capturing £4m reversion, improving occupancy, and investing in asset upgrades.

• Ongoing share buyback program to narrow the discount to NAV, supported by surplus disposal proceeds.

• Low leverage maintained, with £50m RCF refinancing completed for investment flexibility.

• Strategy remains unchanged post-year-end, emphasizing higher quality income and value creation.