Picton Property Income (PCTN) investor relations material

Executive summary

• Achieved strong financial performance with £37m profit after tax and over 8% total return for FY 2024/25, reversing prior year losses and outperforming the MSCI index for the twelfth consecutive year.

• Maintained a diversified UK commercial property portfolio valued at £723m, with 47 assets across industrial, office, retail, and leisure sectors, rebalancing towards industrial and reducing office exposure by a fifth via disposals.

• Dividend increased twice during the year to 3.7p per share, with a well-covered payout ratio of 113%.

• Continued focus on income and value growth, with 12th consecutive year of MSCI outperformance and increased occupancy to 94%.

• Proceeds from disposals reinvested in upgrades, debt repayment, and share buybacks, with a £7.5m buyback programme launched.

Financial highlights

• Profit after tax of £37m, compared to a £5m loss in 2024 and £90m loss in 2023.

• EPRA earnings rose to £23m (up 5% year-over-year), with EPRA EPS up to 4.2p.

• Net asset value increased 4% to £533m, NAV per share up to 100p from 96p.

• Dividend per share increased to 3.7p, with £20m paid and 113% dividend cover.

• Loan-to-value ratio at 24%, weighted average interest rate 3.7%, and debt maturity profile of 6.7 years.

Outlook and guidance

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

• Continued share buybacks, with £4m post year-end and £5m continuation announced, aiming to narrow the discount to NAV.

• Strategy to balance income optimization and value creation, with ongoing investment in asset upgrades and selective recycling of lower-yielding assets.

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