Picton Property Income’s NAV/EPRA NAV per share rose 6.7 per cent to 53.8 pence for the quarter ended 31 December 2013 from 50.4 pence at 30 September 2013.
Net assets increased to GBP204.3m (30 September 2013: GBP180.3m) with an increase in the company’s underlying property portfolio valuation of 3.3 per cent (30 September 2013: 1.4 per cent).
Average debt maturity is 13.7 years, with a fixed weighted average interest rate maintained at 4.5 per cent per annum.
Picton raised GBP11.9m through the issue of 22.2 million shares at 53.5 pence, a 6.2 per cent premium to September NAV.
Picton has declared a dividend of 0.75 pence declared (30 September 2013: 0.75 pence). Post-tax dividend cover over the quarter totals 122 per cent (30 September 2013: 126 per cent). Dividend yield is 5.4 per cent, based on share price of 56.0 pence as at 31 December 2013.
Nick Thompson, chairman of Picton says: “The increase in NAV over the past quarter has been driven by a valuation uplift of 3.3 per cent, enhanced by our capital structure and covered dividend. Improving conditions in the broader economy have had a positive impact on valuations, arising from increased confidence and also activity in the regional markets outside Central London. Against this backdrop, we are considering the optimal long term funding arrangements for the group.”
Michael Morris, chief executive of Picton Capital, says: “We are continuing to see progress in lettings as a result of our asset management initiatives, which, together with greater investment activity in the market, have resulted in improved valuations across the portfolio. We have also made good progress in continuing to reshape the underlying portfolio by selling two smaller assets and making a further acquisition increasing our holding at Angel Gate.”