Picton Property Income Limited · LSE:PCTN
Picton Property Income — FY2025 Earnings Presentation
40 slides from Picton Property Income's earnings presentation, May 22, 2025
Slide 1: Annual Results 2025
Annual Results 2025 22 May 2025 Confidential
Slide 2: Contents
Contents 2 Overview Portfolio highlights Summary & outlook Picton at a glance 4 Portfolio overview 31 March Outlook 32 2025 17 Focused on income and value growth 5 Performance snapshot 18 Valuation movements 19 Financial results Appendices Portfolio activity 20 Key financial highlights 7 Our strateg
Slide 3: Overview
Overview Annual Results 2024/25 www.picton.co.uk
Slide 4: Picton at a glance
Picton at a glance 4 We are a diversified Real Estate Investment Trust (REIT) investing in UK commercial property. Our property portfolio consists of 47 assets invested in the industrial, office, retail and leisure sectors. We own a portfolio strategically positioned Industrial Pence Office per shar
Slide 5: Focused on income and value growth
Focused on income and value growth 5 Strong financial performance delivering income 8.1% Upgrading our assets and creating asset management £ 11.8m and capital growth Total return opportunities Asset upgrades Maintaining our long-term track record 12th Consecutive year of Effective use of gearing, r
Slide 6: Financial results
Financial results Annual Results 2024/25 www.picton.co.uk
Slide 7: Key financial highlights
Key financial highlights 7 Strong financial performance delivering income and value growth 37m 8.1% Profit after tax Total return Valuable long-term £ debt structure 24% 2025 £37m 2025 8.1% Loan to value 2024 -£5m 2024 -0.9% 2023 -£90m 2023 -13.9% 23m 533m EPRA earnings Net assets 2024 28% £ £ 2023
Slide 8: Net asset value movement
Net asset value movement 8 Increase of 4% to 100 pence per share primarily due to valuation gains on our industrial assets Valuation +3.8% LTIP LfL incl capex +2.1% EBT £1.5m Share buyback Tactical acquisition £0.5m shares purchased Avge price 67p £0.8m Discount 33% £600m awards £590m Disposals £580
Slide 9: EPRA earnings movement
EPRA earnings movement 9 Increase of 5% to 4.2 pence per share primarily due to industrial exposure and office disposals Net rent +2.4% LfL Underlying portfolio +£0.9m (+2%) Disposals: FY24 NRI £0.1m FY25 NRI -£0.5m Lower RCF repaid Rent collection 99%+ exceptionals from disposals £25m Higher cash £
Slide 10: Capital allocation
Capital allocation 10 Strategic capital allocation: creating value through disposal proceeds Angel Gate, London Charlotte Terrace, London Longcross, Cardiff Alternative use Residential Alternative use Residential Alternative use Student Completion date Apr 2024 Completion date Jan 2025 Completion da
Slide 11: Market update
Market update Annual Results 2024/25 www.picton.co.uk
Slide 12: Economic backdrop
Economic backdrop 12 Global uncertainty, evolving trade policy impact – Impact of 2024 UK Budget Bank of England base rate 4.25% – Positive but lower UK GDP growth forecasts – Inflation upside/downside risks 5-year SONIA swap rate 3.8% – Long-term gilt yields below January 2025 peak Ten-year gilt yi
Slide 13: UK property market at a glance
UK property market at a glance 13 Common themes – All Property values stable/growing in 2024 – Rental growth driven by quality/lack of supply – Higher investment transaction volumes but – Construction costs still rising still well below long-term average – In many markets values below replacement co
Slide 14: Occupational markets
Occupational markets 14 Positive rental growth in all sectors – Continued positive rental growth in all sub-sectors (sub-sector range 4.6% to 7.2%) Industrial – YTD 2025 has seen moderation in rental growth compared with 2024 – MSCI All Industrial occupancy 91% (standard industrial 90%, distribution
Slide 15: Investment markets
Investment markets 15 Modest capital growth – All Industrial positive capital growth month-on-month since April 2024 Industrial – Annual capital growth sub-sector range 2.9% to 6.9% – Transaction volumes increased in year to March 2025 but were below the long-term average – Values still declining, b
Slide 16: Portfolio highlights
Portfolio highlights Annual Results 2024/25 www.picton.co.uk
Slide 17: Portfolio overview March 2025
Portfolio overview 31 March 2025 17 Our diverse exposure provides flexibility to adapt to market conditions Portfolio composition Industrial 64% Geographical weighting Office 24% 25-50% 10-25% Retail & Lesiure 12% 0-10% £723m 94% 350 Property valuation Occupancy Number of occupiers 47 5.2% 6.8% No.
Slide 18: Performance snapshot
Performance snapshot 18 Maintaining our long-term track record of property outperformance 7.3% 6.3% Performance – TPR: 7.3%, outperforming MSCI UK Quarterly Property vs Index of 6.3% Total property MSCI UK Quarterly – Portfolio income 5.2% vs 4.8% return Property Index – Capital 2.1% vs 1.5% Occupan
Slide 19: Valuation movements
Valuation movements 19 Like-for-like valuation increase driven by industrials with office investment maintaining values FY24 Capex Valuation FY25 LfL Industrial £440.4m £3.0m £19.2m £462.6m 4.4% Office £176.0m £8.1m -£8.7m £175.4m -5.0% Retail & Leisure £79.8m £0.6m £4.2m £84.6m 5.2% Total £696.2m £
Slide 20: Portfolio activity
Portfolio activity 20 Improved portfolio metrics Transactions 94% 78 Lettings Renewals/ regears 25 36 Occupancy £51m Break removals 4 Rent reviews 13 Office disposals Lettings Renewals/Regears £11.8m (New rent vs March 2024 ERV) (New rent vs previous rent) 7% 14% New rent £2.9m New rent £6.6m Invest
Slide 21: Industrial overview
Industrial overview 21 High occupancy, ERV growth and significant reversionary upside FY 2025 – 81% multi-let industrial, 19% Assets 19 Transactions Occupancy 99% distribution 45 Valuation £463.2m Lettings 12 Acquisition £0.5m – 71% South East, 29% Rest of UK Renewals/ regears 24 Capital expenditure
Slide 22: Industrial snapshot
Industrial snapshot 22 Improving income through key lease events Parkbury – M25 multi-let estate Datapoint – London multi-let estate – Facilitated another occupier to take – Facilitated expansion of an occupier into more space an adjacent unit at £0.5m, increasing – Retained an occupier at £0.8m, th
Slide 23: Office overview
Office overview 23 Reduced exposure through opportunistic disposals FY 2025 – Split broadly equally between Assets 14 London, South East and Rest of 20 Transactions Occupancy 86% Valuation £175.3m UK Lettings 11 Disposals £51.0m Renewals/ regears 7 Capital expenditure £8.1m – Equivalent yield range
Slide 24: Office snapshot
Office snapshot 24 Repositioning and upgrading assets Bristol Milton Keynes London - Farringdon – Upsized existing occupier to – Agreed two lease renewals – Planning secured via take more space securing £0.8m, 23% ahead of permitted development the previous passing rent and rights for rooftop reside
Slide 25: Retail and leisure overview
Retail and leisure overview 25 Positive ERV and valuation growth FY 2025 – Two thirds retail warehouse, one Assets 14 Transactions Occupancy 94% third high street & leisure 13 Valuation £84.6m Lettings 2 Capital expenditure £0.7m – Equivalent yield range 6.5% to Renewals/ regears 5 Equivalent yield
Slide 26: Retail and leisure snapshot
Retail and leisure snapshot 26 Capturing rental growth through key lease events Sheffield Gloucester – Regeared occupier extending lease – Let a unit for a ten-year term by ten years – Regeared an occupier extending lease by ten – Income of £1.2m, 14% ahead of March years 2024 ERV – Securing a combi
Slide 27: Reinvesting in the portfolio
Reinvesting in the portfolio 27 Improving assets to enhance income and value Major projects in year* £11.8m Bristol Milton Keynes Asset upgrades Marlow 20+ Projects 68% Gloucester Chatham Industrial Office Colchester Major projects across six buildings totalling £8m 65% – Invested significantly to u
Slide 28: Sustainable thinking: practical solutions
Sustainable thinking: practical solutions 28 Reducing our emissions and improving our portfolio 4% Portfolio EPC ratings (% of ERV) 100% 90% 76% 80% 83% G F Annual reduction in absolute 80% 71% 64% E Scope 1 & 2 emissions 70% 55% 60% D 83% 50% 40% 34% C 40% 28% 30% 21% B 13% 20% 9% A 10% A-C rated E
Slide 29: Portfolio void
Portfolio void 29 £3.4m of upside through re-leasing Vacancy by building and sector £900,000 100% £800,000 90% £700,000 80% Occupancy £600,000 70% ERV 60% £500,000 50% £400,000 40% £300,000 30% £200,000 20% £100,000 10% £0 0% Grafton Gate, Milton Pembroke Court, Gloucester Queens House, Stanf ord Bu
Slide 30: Portfolio reversion
Portfolio reversion 30 £4m reversion to be captured through lease events Reversion potential (£m) Income at risk and reversion by sector (£m) 60.0 55.6 4.0 0.0 £14 3.4 Industrial Office Retail & Leisure 50.0 2.2 £12 3.7 42.3 40.0 £10 £8 30.0 £6 20.0 £4 10.0 £2 0.0 £- Rent free Vacancy ERV Contracted
Slide 31: Summary & Outlook
Summary & Outlook Annual Results 2024/25 www.picton.co.uk
Slide 32: Outlook
Outlook 32 Continued focus on shareholder value Income and value growth Opportunistic disposals ‒ Capture reversion, improve occupancy ‒ Recycle portfolio to improve earnings ‒ Invest into portfolio to upgrade assets ‒ Focus on lower yielding assets ‒ Optimising income vs value Capital allocation Le
Slide 33: Appendices
Appendices Annual Results 2024/25 www.picton.co.uk
Slide 34: Our strategy
Our strategy 34 Through our occupier focused, opportunity led approach, we aim to be one of the consistently best performing diversified UK REITs, creating value for our shareholders. Our strategic priorities guide the direction of our business and are reviewed annually. 1 2 3 Portfolio Operational
Slide 35: Our top 10 properties valued in excess of £20m
Our top 10 properties valued in excess of £20m 35 01. 02. 03. 04. 05. Parkbury Industrial River Way Industrial Stanford Building, Datapoint, Cody Road, Lyon Business Park, Estate, Radlett Estate, Harlow London WC2 London E16 Barking Approx area (sq ft) / 340,900 Approx area (sq ft) / 454,800 Approx
Slide 36: Debt summary
Debt summary 36 Strong longstanding relationships and secured facilities with lenders Canada Life Aviva NatWest* Maturity 2031 2032 May 2025 Amount drawn £129.0m £80.6m £0 Undrawn Fully drawn Fully drawn £50m Fixed/floating rate Fixed Fixed Floating Interest rate 3.25% 4.38% SONIA + 1.5% Commitment
Slide 37: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income 37 Annual results March 2025 March 2024 (£m) (£m) Rental income 43.5 43.9 Other income 0.7 1.2 Property expenses (6.5) (7.2) NET PROPERTY INCOME 37.7 37.9 Administrative expenses (7.1) (7.2) Finance costs (7.8) (9.0) EPRA EARNINGS 22.8 21.7 Unrealised m
Slide 38: Consolidated balance sheet
Consolidated balance sheet 38 March 2025 March 2024 (£m) (£m) Property assets 700.7 724.0 Cash 35.3 19.8 Other assets 28.6 30.1 TOTAL ASSETS 764.6 773.9 Borrowings (208.5) (226.1) Other liabilities (22.7) (23.3) NET ASSETS 533.4 524.5 Net asset value per share (pence) 100 96 Annual Results 2024/25 w
Slide 39: Disclaimer
Disclaimer 39 This presentation is for information purposes only and extracted from unpublished sources prepared by other does not constitute an offering document or an offer of parties which have been made available to Picton. transferable securities to the public in the UK. Picton has not carried
Slide 40: Contact details
Contact details 40 If you require any further information please contact Michael Morris Picton Property Income Limited Stanford Building, 27A Floral Street WC2E 9EZ +44 (0) 207 011 9980 www.picton.co.uk Annual Results 2024/25 www.picton.co.uk
Picton Property Income — FY2025 Earnings Presentation on 6ix