Picton Property Income (PCTN) Trading update summary

Financial performance

• NAV per share decreased by 0.7% to 101.5p, with a total return of 0.2% for the quarter ended 30 June 2026.

• Share price at quarter end was 71.1p, reflecting a 30% discount to NAV.

• Total borrowings reduced to £207.7 million, with a fixed interest rate of 3.7% and average maturity of 5.5 years.

• Net LTV ratio increased slightly to 24.1%.

• Interim dividend of 0.69p per share declared for the quarter.

Portfolio and operational highlights

• Portfolio valuation increased by 0.4% to £702.3 million, with £4.8 million invested, mainly in office upgrades.

• Seven lettings secured at £0.7 million annual rent, 1% above March 2026 ERV; four lease renewals at a 9% rent increase.

• Four rent reviews settled, increasing annual rent by £0.1 million; two break options removed, securing £0.2 million for five years.

• Completed disposal of a non-core industrial asset for £1.2 million, 30% above March 2026 valuation.

• Occupancy stable at 84%; industrial occupancy at 85%, office at 77%, and retail at 96%.

Market and sector trends

• MSCI UK Monthly Property Index showed a 1.1% total return for all property in Q2 2026, with 0.9% rental growth.

• Industrial sector: 66.4% of portfolio, with two lettings 7% above ERV and a 30% uplift on settled rent reviews.

• Office sector: five lettings at £0.6 million, 0.3% above ERV; significant refurbishments and decarbonisation works ongoing.

• Retail and leisure: stable occupancy and positive rental growth, especially in retail warehouses.