26 October 2020
Picton Property Income Limited
Dividend Declaration and Increase
Picton today announces a 12% increase to its interim dividend and payment in respect of the financial period from 1 July 2020 to 30 September 2020.
In April, recognising the uncertainty caused by the Covid-19 pandemic, the associated lockdown and the consequent potential impact to cash flow, the Company announced a reduction in the quarterly dividend payment from 0.875 pence to 0.625 pence,
Since this time, both the Company’s position and the impact on its occupiers has become clearer. Rent collection data for the first two quarters of 2020 is as follows:
Received 90% of the March quarter’s rent, which is expected to rise to 96% under agreed payment plans
Received 90% of the June quarter’s rent, which is expected to rise to 93% under agreed payment plans
In addition, currently 88% of the September quarter’s rent has been collected, when including 12% on agreed monthly payment plans. This figure is expected to increase further over time and is comparable to the corresponding rent collection during the previous two quarters.
Picton entered this period of uncertainty from a position of strength with a covered dividend and a strong balance sheet with an LTV of 22%. As such, the Board has concluded that, recognising the levels of rent collection, leasing progress and the distribution requirements of the REIT regime, it is appropriate to increase the level of distribution from the current level.
This provides the Company with continued flexibility in managing the property portfolio, supporting its occupiers at the current time and for creating longer term value for shareholders.
The quarterly dividend will be increased by 12% to 0.7 pence per share (2.8 pence from 2.5 pence annualised) with immediate effect.
The dividend timetable is set out below:
Ex-Dividend Date – 5 Nov 2020
Record Date – 6 Nov 2020
Pay Date – 30 Nov 2020
The dividend of 0.7 pence per share will be designated as a property income distribution (‘PID’).
Further information will be provided with the Company’s interim results which are due to be released on Thursday 12 November 2020.
Nick Thompson, Chairman of Picton Property Income commented:
“Having had sufficient time to assess the performance of the portfolio and our occupiers against current market conditions, the Board believes it is appropriate to take the first step in restoring the dividend to pre Covid-19 levels. Our decision was influenced by our rent collection performance, leasing activity and progress on asset management initiatives.”.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014
Northern Trust International Fund Administration Services (Guernsey) Limited
The Company Secretary
St Peter Port
Tel: 01481 745001
Note to Editors
Picton, established in 2005, is a UK REIT. It owns and actively manages a £659 million diversified UK commercial property portfolio, invested across 47 assets and with around 350 occupiers (as at 30 June 2020). Through an occupier focused, opportunity led approach to asset management, Picton aims to be one of the consistently best performing diversified UK focused property companies listed on the main market of the London Stock Exchange.
For more information please visit: www.picton.co.uk