Highlights

  • Picton Property Income received buy ratings from Stifel Europe and Panmure Lliberum with a target price of GBX 90.
  • Profit after tax for the half-year reached GBP 15.1 million, or 2.9p per share, while total returns increased to 3.4%.
  • The company continued its GBP 12.5 million share buyback programme and maintained portfolio occupancy of 90%, with ongoing industrial sector growth.

Picton Property Income Limited (LSE:PCTN) has received buy ratings from Stifel Europe and Panmure Lliberum, with both analysts assigning a target price of GBX 90. The rating might follow the company’s release of its half-year results for the period ending 30 September 2025, which show improved profits, positive total returns, and ongoing initiatives to enhance shareholder value.

Half-Year Results Show Improved Profits

Picton reported a profit after tax of GBP 15.1 million, or 2.9p per share, compared with GBP 11.5 million, or 2.1p per share, in the same period last year. EPRA earnings reached GBP 10.5 million, or 2.0p per share, slightly below last year’s GBP 11.2 million or 2.1p per share. Net assets stood at GBP 527.6 million, or 102p per share, up from 100p per share in March 2025. The EPRA net disposal value also increased to GBP 550.6 million, or 106p per share, compared with 105p per share at the previous reporting date. Total returns improved to 3.4%, marking a notable increase from 2.2% in September 2024, while dividends of GBP 10.0 million were paid, supporting a 2.7% dividend rise effective May 2025.

Shareholder-Focused Initiatives Continue

Picton has actively pursued initiatives to enhance shareholder value, including a GBP 12.5 million share buyback programme announced in September 2025, bringing total buyback allocation since January to GBP 30 million. During the period, 13.6 million shares were repurchased at an average price of 77p, significantly below the September NAV of 102p per share. Total shareholder return for the period reached 12.1%, compared with 17.4% in the prior year.

Portfolio Management Drives Capital and Rental Growth

The company reported total property returns of 3.2%, outperforming the MSCI UK Quarterly Property Index of 2.7%. The like-for-like portfolio valuation increased 0.8%, or 0.6% after net capital expenditure. Estimated rental value across the portfolio rose 3.7%, with gains concentrated in industrial assets. Over 50 asset management transactions were completed during the period, securing GBP 6.1 million of contracted rent, 2.8% ahead of the March 2025 ERV. Picton also identified GBP 10 million of income upside potential through lease renewals and re-leasing vacant space.

Portfolio Repositioning and Sustainability Focus

Picton continues to reduce exposure to lower-yielding office assets while increasing industrial holdings, which now comprise 68% of the portfolio. Occupancy remains at 90%, with two-thirds of vacant space undergoing refurbishment. Environmental improvements remain a priority, with GBP 4.0 million invested in upgrading projects and completion of decarbonisation initiatives at Milton Keynes and Chatham offices. EPC ratings improved, with 86% of assets now rated A-C, up from 83% in March 2025.