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Picton Property Income Ltd - Dividend Declaration

·3-min read

28 January 2021

Picton Property Income Limited
(“Picton”, the “Company” or the “Group”)
LEI: 213800RYE59K9CKR4497

Dividend Declaration and Increase

Picton today announces a 14% increase in its interim dividend to 0.8 pence per share in respect of the financial period from 1 October 2020 to 31 December 2020.

Background

In April 2020, recognising the uncertainty caused by the Covid-19 pandemic, the associated lockdown and the consequent potential impact to cash flow, the Company announced a 29% reduction in the quarterly dividend payment from 0.875 pence to 0.625 pence.

Having had time to assess the initial impact of the pandemic, the Board decided in November to increase the dividend by 12% to 0.7 pence per share, reflecting progress with rent collection, asset management projects and various leasing initiatives.

Rent collection data for 2020 is as follows:

  • Received 95% of the September and June quarters’ rent and 90% of the March quarter’s rent.

  • Currently 87% of the December quarter’s rent has been collected, when including 11% on agreed monthly payment plans. This figure is comparable to the corresponding rent collection during the previous two quarters.

In respect of the remaining rent outstanding, ongoing discussions and active management opportunities are expected to further improve the income or capital position of the portfolio.

Picton maintains a strong balance sheet with the LTV currently at 21%.

Dividend Increase

Recognising the ongoing levels of rent collection and leasing progress, as well as the distribution requirements of the REIT regime, the Board has concluded that it is appropriate to further increase the level of distribution from the current position. At this revised level the Company will retain the flexibility to manage the property portfolio, support its occupiers through the ongoing crisis and help to create longer term value for shareholders.

Consequently, the quarterly dividend will be increased by 14% (3.2 pence from 2.8 pence annualised) with immediate effect.

The dividend timetable is set out below:

  • Ex-Dividend Date – 4 Feb 2021

  • Record Date – 5 Feb 2021

  • Pay Date – 26 Feb 2021

The dividend of 0.8 pence per share will be designated as a Property Income Distribution (‘PID’).

Nick Thompson, Chairman of Picton Property Income commented:

“We are pleased to be in the position where we can take another positive step forward. This decision means our distributions are now at more than 91% of pre pandemic levels. Hopefully as the vaccine roll out gathers pace and this current lockdown ends, more normalised conditions will return, enabling further growth.”

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014

For further information:

Tavistock

Jeremy Carey/James Verstringhe, 020 7920 3150, james.verstringhe@tavistock.co.uk

Picton

Michael Morris, 020 7011 9980, michael.morris@picton.co.uk

Note to Editors

Picton, established in 2005, is a UK REIT. It owns and actively manages a £675 million diversified UK commercial property portfolio, invested across 46 assets and with around 350 occupiers (as at 31 December 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

ENDS