Picton Property Income (PCTN) Status update summary

Financial performance and returns

• Profit after tax reached £37.3 million for the year to March 2025, with EPRA earnings per share at 4.2p and total return at 8.1% year-to-date.

• Dividend cover improved to 113%, and NAV per share was 102.4p as of December 2025, supported by share buybacks and portfolio gains.

• Share buybacks totaling £23.8 million were completed at an average 25% discount to NAV, enhancing NAV and earnings.

• Portfolio valuation rose to £699 million, outperforming the MSCI benchmark, with office sector values up 0.3%.

• Dividend cover remained strong, supporting reinvestment and future visibility.

Capital structure and investment activity

• Strong balance sheet with £129 million of long-term fixed debt, £50 million undrawn revolving credit facility, and surplus cash from asset disposals.

• Loan-to-value ratio at 23% and weighted average interest rate stable at 3.7% with six years maturity.

• £6.5 million reinvested in portfolio upgrades, mainly in offices, focusing on decarbonization and letting appeal.

• Share buyback program paused in January following the strategic review, after deploying an additional £0.9 million post-quarter end.

• Capital priorities included significant share buybacks and ongoing investment in asset upgrades.

Portfolio performance and market context

• Portfolio valued at £699 million with 46 assets and 83% occupancy; industrial assets comprise 67% of the portfolio.

• Positive leasing momentum with new lettings and renewals achieving rents up to 49% above previous levels and 31% ahead of ERV.

• Recent vacancies primarily in industrial and office sectors, with 77% of current vacancy less than 12 months old; office refurbishments ongoing.

• Capital investment in offices has led to higher rents and improved leasing activity, with notable examples in Colchester, Harlow, and Glasgow.

• Industrial and retail sectors led market returns, while offices faced ongoing challenges but showed moderating declines.