Picton Property Income reports 8.1% NAV total return

LONDON - Picton Property Income Limited (LSE:PCTN) disclosed its annual financial outcomes for the year ending March 31, 2025, highlighting a net asset value (NAV) total return of 8.1% and a profit of £37 million. The company’s property total return stood at 7.3%, surpassing the MSCI UK Quarterly Property Index’s 6.3% return, marking Picton’s 12th year of outperformance.

Net assets reached approximately £533 million at the year’s end. The NAV per share saw an increase of 4.2% to 100p, up from 96p in the previous year. Dividends for the year totaled 3.7p per share, a 5.7% increase from 2024’s 3.5p, with a coverage of 113%, slightly down from 114% in the prior year.

Share price total return was approximately 16%, with the discount to NAV narrowing from around 32% to 28%. The current dividend yield based on the share price is approximately 5.1%.

Kepler Trust Intelligence provided an analysis alongside the results, noting the abatement of macro headwinds and a rise in property values this year, coupled with consistent rental growth even during periods of higher interest rates. Picton has managed to reduce the size and cost of its gearing and maintains the capacity to continue share buybacks. With the UK’s recent interest rate cuts, there is potential for further narrowing of REIT discounts.

The analysis suggests that Picton’s current 28% discount to NAV might be unduly pessimistic given the context of increasing property values, rental growth, and active disposals. However, it is important to note that Kepler Partners LLP, the source of this analysis, has disclosed a relationship with Picton Property Income Limited which may affect the objectivity of their research.

This report is based on a press release statement and is intended for informational purposes only, not as investment advice or a recommendation for any investment action.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.