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%, supporting reinvestment and future visibility.

• NAV per share was 102.4p as of December 2025, up 0.9%, driven by portfolio valuation gains and share buybacks.

• 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%.

Capital structure and investment activity

• Strong balance sheet with £129 million of long-term fixed debt and £50 million undrawn revolving credit facility.

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

• £6.5 million reinvested in the portfolio and £24.7 million deployed in share buybacks since January 2025.

• Continued capital investment of £2.5 million in the quarter, mainly for office upgrades and decarbonization.

• Share buyback program paused in January following the strategic review.

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.

• Capital investment in offices is yielding higher rents and improved occupancy, with notable examples in Colchester, Harlow, and Glasgow.

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