Picton Property Income Limited · LSE:PCTN

Picton Property Income — FY2026 Earnings Presentation

40 slides from Picton Property Income's earnings presentation, 2026

  1. Slide 1: Annual Results 2026: Creating sustainable value

    Picton Property Income Limited Annual Results 2026 Creating sustainable value IIlustration: Parkbury Industrial Estate, Radlett

  2. Slide 2: Introductions

    Introductions 2 Michael Morris Chief Executive Michael has over 30 years of experience in the UK commercial property sector. He has worked with the Group since launch in 2005 and is the Chief Executive. Within this role, he is responsible for the implementation of all aspects of the Company’s strate

  3. Slide 3: Contents

    Contents 3 Overview Portfolio update Summary and outlook Picton at a glance 5 Portfolio overview 18 Outlook 28 Creating sustainable value 6 Portfolio activity 19 Post period end activity 29 Industrial snapshot 20 Summary 30 Financial results Office snapshot 21 Q&A 31 Financial highlights 8 Retail an

  4. Slide 4: Overview

    Overview Annual Results 2025/26 www.picton.co.uk

  5. Slide 5: Picton at a glance

    Picton at a glance 5 We are a diversified UK REIT focused on income and value growth for the benefit of our shareholders – Long-term track record of outperformance through diversified investment Like-for-like ERV growth 4.8% approach across industrial (67%), office (21%) and Retail and Leisure (12%)

  6. Slide 6: Creating sustainable value

    Creating sustainable value 6 Robust financial Focused on Outperforming performance shareholder value portfolio Positive total return Maximised shareholder returns Continuing portfolio of 6.1% and with buyback programme ERV growth £26m £17m 4.8% Profit after tax Shares repurchased at average Like-for

  7. Slide 7: Financial results

    Financial results Annual Results 2025/26 www.picton.co.uk

  8. Slide 8: Key financial highlights

    Key financial highlights 8 Robust financial performance delivering positive total and shareholder returns Profit after tax Earnings per share EPRA earnings per share Dividends per share £26m 5.0p 4.0p 3.8p Net assets NAV per share Total return Dividend Cover £522m 102p 6.1% 103% 2026 103% 2025 113%

  9. Slide 9: Net asset value movement

    Net asset value movement 9 Increase of 2% with moderate valuation increases and accretive share buybacks Valuation LfL +0.7%* Industrial +0.6% Office -0.7% Share buyback programme Retail & Leisure +4.1%** £17m proceeds Avg price 76.8p Avg discount 25% 108p 1.3p (0.2)p (0.1)p 1.0p 106p 104p (3.8)p 10

  10. Slide 10: EPRA earnings movement

    EPRA earnings movement 10 Accretion through share buybacks and stable cost base Rent re-basing & Fixed rate debt lease regears Cost management* 4.5 0.2p through Accretion share buybacks (0.2)p 4.0 0.0p 0.0p (0.2)p (0.2)p 0.2p 3.5 Reversion 3.0 5% increase (excl Rushden) Space under 2.5 4.2p refurbis

  11. Slide 11: Debt overview

    Debt overview 11 Strong balance sheet with significant value in long-term fixed debt structure Facility 31 Mar 26 107p EPRA Net Disposal Value (per share) Term loan Canada Life Fixed: 3.25% £129.0m Mar 2025 105p Maturity: 2031 Mar 2024 101p Reflecting fair value of debt as at March 2026 24% Loan to

  12. Slide 12: Capital allocation

    Capital allocation 12 Reinvesting disposal proceeds into capital priorities Portfolio Share Selective tactical Reduce reinvestment buybacks investments leverage £8.8 million invested to £17.3 million deployed Purchased freehold Scheduled unlock reversion interest of existing holding amortisation Acc

  13. Slide 13: Market update

    Market update Annual Results 2025/26 www.picton.co.uk

  14. Slide 14: Economic backdrop

    Economic backdrop 14 Early 2026 signs of improvement disrupted by Middle East conflict Economic indicators were improving in the first two months of 2026 Middle East conflict (28 February) with initial shock to financial markets, surge in oil and gas prices – Inflation now expected to be higher / no

  15. Slide 15: UK property market at a glance

    UK property market at a glance 15 Economic backdrop impacting pace and strength of recovery – Overall income led performance, All Property capital – Office capital values still declining, rental growth value growth masks sector/sub-sector nuances concentrated in prime locations/buildings – Industria

  16. Slide 16: MSCI monthly data

    MSCI monthly data 16 MSCI monthly ERV growth - occupier markets remain resilient ERV Growth % 1.0 0.5 0.0 -0.5 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 2025 2025 2025 2025 2025 2025 2025 2025 2025 2026 2026 2026 2026 All Retail Office Industrial MSCI monthly capital growth – All Property

  17. Slide 17: Portfolio update

    Portfolio update Annual Results 2025/26 www.picton.co.uk

  18. Slide 18: Portfolio overview

    Portfolio overview 18 Diversified portfolio, providing flexibility to adapt as market conditions dictate Portfolio composition Industrial 67% Geographical weighting Offices 21% 25-50% 10-25% 0-10% Retail & Leisure 12% £701m 84% 300+ Property valuation Occupancy Number of occupiers 46 4.9% 7.5% No. o

  19. Slide 19: Portfolio activity – focused on growing income and creating value

    Portfolio activity – focused on growing income 19 and creating value Reducing low yielding office exposure, upgrading assets and improving rental values Transactions Assets Mar-26 46 £8.8m Investment into the portfolio 99 Occupancy 84% Let tings 33 Valuation £700.8m Renewals/regears 43 Capital expen

  20. Slide 20: Industrial snapshot

    Industrial snapshot 20 Strong ERV growth driven by asset management activity Transactions Assets Mar-26 19 1.2% Like-for-like valuation increase 50 Occupancy 87% Let tings 15 Valuation £468.7m Renewals/regears 21 Capital expenditure £2.8m 5.9% Break r emovals 5 Equivalent yield 5.9% Passing rent £21

  21. Slide 21: Office snapshot

    Office snapshot 21 Asset upgrade programme delivering positive leasing progress with continued ERV growth Transactions Assets Mar-26 13 £35m Disposal of highest value, low yielding 34 Occupancy 75% Let tings 14 Valuation £146.3m office asset Capital expenditure £5.9m 3.5% Renewals/regears 15 Equival

  22. Slide 22: Retail & leisure snapshot

    Retail & leisure snapshot 22 High occupancy with value unlocked through lease restructurings Transactions Assets Mar-26 14 1.4% Like-for-like valuation increase 15 Occupancy 96% Let tings 4 Valuation £85.8m Renewals/regears 7 Capital expenditure -£2.3m 1.4% Break r emovals 1 Equivalent yield 7.9% Pa

  23. Slide 23: Key asset management initiatives

    Key asset management initiatives 23 Industrial Office Retail & Leisure Capturing rental upside Leasing success following Unlocking value through asset upgrades lease restructures ‒ Harlow: extended leases, new ‒ Colchester: letting success and ‒ Carlisle: lease extension and letting following occupi

  24. Slide 24: Reinvesting in the portfolio

    Reinvesting in the portfolio 24 Upgrading assets to retain and attract occupiers Five major capex projects £4.5 £4.0 £3.5 72% Spent on five major projects £3.0 totalling £6.3 million £2.5 10-15% £2.0 £1.5 £1.0 £0.5 £0.0 Tower Wha rf , Bristol Milton Keyne s Metro, Mancheste r Colchester Glouceste r

  25. Slide 25: Upgrading and decarbonising our office assets

    Upgrading and decarbonising our office assets 25 Significant progress with 85% of office assets now fully or partially decarbonised Decarbonisation status Project spend* Whole building – gas to electric Tower Wharf £3.9m Fully fitted ground floor suite, nearing completion Expected EPC A Bristol Whol

  26. Slide 26: Occupancy and key voids

    Occupancy and key voids 26 Occupancy impacted by timing of key lease events Historic occupancy 100% 80% 92% Five-year average occupancy 60% 78% 40% 20% 0% Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26 Of vacancy less than 12 All Industrial Office Retail & Leisure months old Vacancy by property – top ten

  27. Slide 27: Outlook & summary

    Outlook & summary Annual Results 2025/26 www.picton.co.uk

  28. Slide 28: Outlook

    Outlook 28 Significant upside through re-leasing vacant space and resetting rents to ERV Rent bridge 60.0 55.0 Contracted rent: £43.1m 8.8 4.6 -0.2 56.4 4.9% 50.0 Net initial yield £m 45.0 7.5% 40.0 35.0 30.0 Passing rent Rent free Stepped Vacancy Reversion Over-renting ERV rents All Industrial Offi

  29. Slide 29: Activity post period end

    Activity post period end 29 Post period end we are pleased to report the following portfolio activity – Positive leasing interest in vacant space across all sectors - Proposals made/negotiations ongoing on over £5 million* of ERV – Includes our second largest void where negotiations are underway to

  30. Slide 30: Summary

    Summary 30 Continued focus on creating shareholder value Long-term track record of outperformance Portfolio with income focus and significant reversionary potential Portfolio biased towards industrial warehouse, logistics £13 million of rental upside through lettings and resetting sectors with asset

  31. Slide 31: Q&A

    Q&A Annual Results 2025/26 www.picton.co.uk

  32. Slide 32: Appendices

    Appendices Annual Results 2025/26 www.picton.co.uk

  33. Slide 33: Our strategy

    Our strategy 33 Through our occupier focused, opportunity led approach, we aim to be the consistently best performing diversified UK REIT creating value for our shareholders. Our strategic priorities guide the direction of our business and are reviewed annually. 1 2 3 Portfolio Operational Acting Pe

  34. Slide 34: Our top 10 properties

    Our top 10 properties 34 01/ 02/ 03/ 04/ 05/ Parkbury Industrial River Way Industrial Shipton Way, Datapoint, Cody Road, Lyon Business Park, Estate, Radlett Estate, Harlow Rushden London E16 Barking Approx area (sq ft) / 337,900 Approx area (sq ft) /464,800 Approx area (sq ft) / 312,900 Approx area

  35. Slide 35: Consolidated statement of comprehensive income

    Consolidated statement of comprehensive income 35 Annual Results March 2026 March 2025 (£m) (£m) Rental income 41.2 43.5 Other income 2.1 0.7 Property expenses (7.5) (6.5) NET PROPERTY INCOME 35.8 37.7 Administrative expenses (7.1) (7.1) Finance costs (7.8) (7.7) EPRA EARNINGS 20.9 22.9 Strategic Re

  36. Slide 36: Consolidated balance sheet

    Consolidated balance sheet 36 Annual Results March 2026 March 2025 (£m) (£m) Property assets 682.1 700.7 Cash 43.3 35.3 Other assets 26.2 28.6 TOTAL ASSETS 751.6 764.6 Borrowings (206.6) (208.5) Other liabilities (23.0) (22.7) NET ASSETS 522.0 533.4 Net asset value per share (pence) 102 100 Annual R

  37. Slide 37: Debt summary

    Debt summary 37 Strong longstanding relationships and secured facilities with lenders Canada Life Aviva NatWest* April 2028 Maturity 2031 2032 +(two year extension) Amount drawn £129.0m £79.1m £0 Undrawn Fully drawn Fully drawn £50m Fixed/floating rate Fixed Fixed Floating Interest rate 3.25% 4.38%

  38. Slide 38: Sustainable thinking – key highlights for the year

    Sustainable thinking – key highlights for the year 38 Environmental focus Social impact Governance Our environmental priorities are focused on Our social value priorities are focused on Strong governance ensures our clear and managing climate risk, owning sustainable stakeholder engagement with an e

  39. Slide 39: Disclaimer

    Disclaimer 39 This presentation is for information purposes only and does not constitute an offering document or an offer of transferable securities to the public in the UK. This presentation is not intended to provide the basis for any credit or other evaluation of any securities of the Company and

  40. 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

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