Picton Property Income (PCTN) H2 2026 earnings summary

Executive summary

• Delivered positive total and shareholder returns, with a profit after tax of £26 million and a total return of 6.1% for the year, despite challenging UK and global political and economic conditions.

• Maintained a diversified UK REIT portfolio, with 67% industrial, 21% office, and 12% retail & leisure exposure, and a long-term track record of outperformance versus MSCI benchmarks for 13 consecutive years.

• Strategic focus on reducing low-yielding office exposure and reinvesting in higher-return assets.

• Ongoing engagement with stakeholders following a proposed offer and Strategic Review announced in May 2026.

Financial highlights

• Profit after tax of £26 million or £0.05 per share; EPRA earnings of £0.04 per share.

• Net asset value (NAV) per share increased by 2% year-over-year, with NAV per share at 102p and net assets at £522 million.

• Total return for the 12 months was 6.1%; total shareholder return was 12.6%.

• Dividend per share was 3.8p, with a near 3% increase year-over-year and 103% dividend cover.

• £17 million of shares repurchased at an average 25% discount to NAV, accretive to NAV and earnings.

Outlook and guidance

• Significant upside potential through re-leasing vacant space and resetting rents to ERV, with £13 million of rental upside identified.

• Majority of reversionary potential sits within the industrial sector, with clear evidence of ability to unlock it.

• Positive leasing interest post period end, with negotiations ongoing for over £5 million of ERV and proposals on most vacant space.

• Continued focus on asset management, capital recycling, and maintaining a strong balance sheet.