This announcement contains inside
information for the purposes of Article 7 of the UK version of the
Market Abuse Regulation (EU no. 596/2014) as it forms part of
domestic law by virtue of the European Union (Withdrawal) Act 2018
(as amended from time to time) ('UK MAR').
30 January
2025
PICTON PROPERTY INCOME
LIMITED
('Picton' or the
'Company')
LEI:
213800RYE59K9CKR4497
Share Buyback
Programme
Picton today announces its intention
to commence a share buyback programme.
Picton has instructed its corporate
broker, Stifel Nicolaus Europe Limited ('Stifel'), to purchase on
behalf of the Company, ordinary shares in the capital of the
Company of no par value ('Ordinary Shares') pursuant to a buyback
programme with a maximum aggregate consideration of £10 million
(the 'Programme').
Background
Picton has been pursuing a strategy
to reduce office exposure and has disposed of assets that have been
actively repositioned for alternative uses. The first disposal
completed in April 2024 and, following completion of a second
disposal yesterday, it has successfully completed disposals with
gross proceeds of £43 million. The third disposal is expected to
complete during this financial year, increasing gross proceeds to
£51 million. The total gross proceeds are 5% ahead of the
independent March 2024 valuation and the disposals have helped to
increase portfolio occupancy to 95% (March 2024: 91%).
In 2024 the disposal proceeds were
prioritised to repay all the Company's floating rate debt,
totalling £16.4 million. The Company now benefits from a loan to
value ratio of 25% and fixed rate debt at 3.7% with a 7 year
maturity profile.
Furthermore, the Company has made
significant investment into the portfolio to upgrade asset quality
and environmental credentials to facilitate leasing transactions,
rental and capital growth. During the nine months to 31 December
2024, £8.5 million was invested principally across 25
assets.
Despite the above progress, there
remains a material disconnect between the Company's share price and
its Net Asset Value per share ('NAV'). As announced on 28 January
2025, the NAV increased by 2.3% for the three months to 31 December
2024 and the closing share price on 29 January 2025 represents a
discount to the 31 December 2024 NAV of 37%.
The Board believes the current share
price materially undervalues the Company and the share buyback
programme is an attractive use of proceeds that will create value
for shareholders. In its 2024 Notice of AGM the Company stated
that, if such a scenario was to arise, after the payment of
dividends, it would repurchase its shares through the
market.
Programme
The Programme will be carried out
under the existing shareholder authorisation granted at the last
Annual General Meeting, in July 2024 ('the AGM'), for purchases of
Ordinary Shares by the Company in the market for up to 14.99% of
the Company's issued capital as at the AGM, being
82,086,078 Ordinary
Shares. The Company intends, at its sole
and absolute discretion and subject to prevailing market
conditions, to exercise this authority from time to time pursuant
to the Programme.
In line with the authority given
at the AGM, the
maximum price (exclusive of expenses) which may be paid for an
Ordinary Share shall be an amount equal to the higher of (i) 105%
of the average of the middle market quotations (as derived from the
Daily Official List) for the Ordinary Shares for the five business
days immediately preceding the date of purchase; or (ii) the higher
of such price of the last independent trade and the highest current
independent bid at the time of purchase.
Unless previously varied, revoked or
renewed, the authority for the Company to repurchase its own shares
granted at the AGM will expire at the conclusion of the Annual General Meeting of
the Company to be held in 2025 (save that the Company may, prior to
such expiry, enter into a contract to purchase Ordinary Shares
under such authority and may make a purchase of Ordinary Shares
pursuant to any such contract).
Given the level of liquidity in the
Company's shares, the Company will retain the ability to exceed the
average daily volume parameters prescribed by the exemption for
buyback programmes established by UK MAR and the MAR buyback
programme technical standards (Commission Delegated Regulation (EU)
2016/1052), as it forms part of domestic law by virtue of the
European Union (Withdrawal) Act 2018 (as amended from time to time)
(the 'Technical Standards'). Accordingly,
the Company may not benefit from the exemption contained in Article
5(1) of MAR.
While the Company has launched the
Programme, there is no certainty on the volume of Ordinary Shares
that may be acquired under the Programme and the pace of
acquisitions. The Board will keep the Programme under review to
make sure it continues as an efficient and effective means of
generating value for shareholders and the Programme may be
cancelled or changed at any time at the Company's sole and absolute
discretion.
Any Ordinary Shares repurchased will
be cancelled by the Company.
Any market purchase of Ordinary
Shares pursuant to the Programme will be announced no later than
7:30am (UK time) on the business day
following the day on which the purchase occurred.
The person responsible for arranging
the release of this announcement on behalf of the Company is
Kathy Thompson, Company
Secretary.
For
further information:
Picton
Kathy Thompson, Company
Secretary
020 7011 9988, kathy.thompson@picton.co.uk
Tavistock
James Verstringhe
020 7920 3150, james.verstringhe@tavistock.co.uk
About Picton
Established in 2005, Picton is
listed on the main market of the London Stock Exchange and is a
constituent of a number of EPRA indices including the FTSE EPRA
Nareit Global Index.
Picton owns and actively manages a
£737 million UK commercial property portfolio, invested across 48
assets and with around 350 occupiers (as at 31 December
2024).
Through an occupier focused,
opportunity led approach, Picton aims to be one of the consistently
best performing diversified UK REITs and has delivered upper
quartile outperformance and a consistently higher income return
than the MSCI Quarterly Property Index since
launch.
With a portfolio strategically
positioned to capture income and capital growth, currently weighted
towards the industrial sector, Picton's agile business model
provides flexibility to adapt to evolving market trends over the
long-term.
Picton has a responsible approach to
business and is committed to being net zero carbon by
2040.
For more information please
visit: www.picton.co.uk
ENDS
