Picton Property Income (LSE:PCTN) — Investor Presentation

0:01 Good morning, ladies and gentlemen, and welcome to the PCTN PROPERTY INCOME LTD INVESTOR PRESENTATION. Questions are encouraged and could be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Please just simply type in your questions at any time and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all of the questions submitted today and publish responses where it is appropriate to do so. These will be available via your investor meet company

0:33 dashboard, and we will notify you by email when these are ready for your review. Before we begin, I would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. I'd now like to hand you over to CEO, Michael Morris. Good morning, sir. Morning. Thank you, and good morning, everybody. My name is Michael Morris. I'm the chief executive of PCTN PROPERTY INCOME. I've been with the company since launch in 2005, and it's a pleasure to use Investor Meet company this morning and interact with shareholders in this way. In terms of our presentation, I'm gonna give a brief overview on the company for those that don't know us.

1:20 I'm gonna talk about our annual resort results. I'm gonna talk about the market, the underlying portfolio, what we've been doing around responsible stewardship and sustainability in particular. And then I'm gonna close with an outlook slide, and then, you know, we'll turn to the q and a. So just looking at PCTN at a glance.

1:53 PCTN was established before UK REITs were invented. We transitioned to a REIT in 2018, and we're an internally managed company, different to some of the externally managed investment companies that you might also know. Our purpose is to be a responsible owner of real estate, helping our occupiers succeed and being valued by all our stakeholders. One of the things I'm particularly proud of is our long term track record For those that know, the way real estate is measured is using something called the MSCI benchmark, and we have delivered outperformance over all time periods shown on that chart.

2:40 And what's particularly pleasing about that is quite a number of the team have been with me on this journey since the start as the as well. For this particular year in question, we've seen strong financial performance. The portfolio has again continued to outperform the market. We've been improving occupancy and income, and we spent a lot of time this year thinking about the future climate change, risk mitigation, etcetera. On the next slide, we've got some performance numbers. I'm not gonna go through all of these. I should say that this presentation is available on our website as well, so you can easily refer back to it. But but I think what you can see from that slide is that that all these metrics are moving in the right direction.

3:30 The next slide just shows a business overview. So we have an £850,000,000 property portfolio. We have about 220,000,000 of borrowings. So we have net assets of $806,157,000,000, and we currently have a market cap. It's risen since our results were released of about 535,000,000. So the shares do currently trade at a discount to NAV. It's a diversified portfolio, although currently, we're more focused in industrial warehouse and logistics assets that represent 60% of the portfolio. 30% of the portfolio is in offices and 10% is in the retail and leisure sector.

4:21 And I'll be talking about each of these sectors in a bit more detail shortly. Our strategy, which is on the next slide, really is focused on three key areas, underlying property performance, efficiently running the business and running it well, and acting responsibly, which I also sort of say is is doing the right thing. And this year, we've added a couple more strategic priorities specifically around climate change, energy efficiency of buildings, etcetera, and I'll talk about that later. So looking at our results. For the year, we saw a total profit of 147,000,000.

5:12 That was a marked increase on the preceding years, really reflecting the fact that that as the economy rebounded post lockdown and restrictions eased, the write downs or some of the write downs that had been seen in prior years reversed. And I'll explain in a bit more detail what that was. Earnings per share was 27 p. We delivered a total accounting return of 28%, and the shareholder return at slightly lower because the share price didn't keep up with the underlying valuation movements and increase in NAV was still a respectable 19%. We increased our dividends during the year such that the payout rate is now in line with what we were distributing pre pre pandemic.

6:12 The next slide just shows our income statement, and you can see from the chart at the bottom, rental income was a key driver. Clearly, this was a period where the impact of the pandemic on businesses was much less. So there was less less write offs than in the preceding year. We'd also let more space and the income flowing through from that leasing activity is accounted for there. Other income was slightly less. In our business, that can be quite lumpy and very dependent on asset management activities. Other costs were generally up a bit. I mean, that's the environment we're in. I would just say that the financing costs went up because we we undertook a refinancing during the year towards the end of the year. So so that's not a recurring cost.

7:06 That's that's just a one off. And I'll explain that, our debt position and refinancing shortly. On the balance sheet, again, the key movement in the bridge graph is is the valuation gains over the period. You can see quite simply income profits on the chart versus the dividends paid. That led to a dividend cover for the year of a 115%. As a business, we don't want to over distribute income and being able to reinvest invest back in the portfolio is is really important to us. And, again, talking about the refinancing that I mentioned earlier, not only did we increase our borrowings, but we actually reduced the interest rate on some of our existing borrowings.

8:02 And, again, that was a a one off impact that's on the on the chart. So looking at our debt on page 13. So currently, the business has a loan to value of around 21%, and we have 219,000,000 of drawn borrowings. And that's at an all in rate of three and a quarter percent now reduced from last year. During the year, we increased the debt facility by about 49,000,000. That enabled us to repay our revolving credit facility that now means that we've got additional firepower for for future acquisitions.

8:49 And, clearly, in the run up to that refinancing, we had also acquired a number of assets that that that was used to finance. The one thing I should say is that the the maturity profile of our debt now is, broadly fixed until 2031 and 2032. So, you know, if you're a view that, you know, interest rates are more likely to continue rising, then having that fixed debt cost clearly is beneficial in terms of having stability in terms of cash flow or or cost outgoings in in respect of debt. So the next few slides are about the market. This isn't about our portfolio per se, but it really sets the context for the the financial returns you've just seen, and in a minute, the the activity within the portfolio.

9:48 So the year to March was a very strong year for commercial property, but it was a year in which different sectors performed quite differently. And the industrial sector, which is where the majority of our portfolio is positioned, had a very good year. Retail saw a rebound in values from the very marked write downs they'd seen in preceding years, and offices were were broadly flat, and it was a more income style return from offices. And the chart I've put on that page, hopefully, you can see it. It's quite small on my screen, but but shows the rebound in both rents and capital values really over the last three years as we've been sort of in the pandemic and and coming out of that.

10:44 And we're expecting and actually seeing more and more of the market open up as, you know, really things have returned back to normal. Looking at each of the sectors in turn, so the industrial market, I think the key in relation to this market at the minute is that demand is good. You know, there have been supply chain issues. Generally, there's more demand because of online. Businesses are back in a more of a growth phase than perhaps they were at points during the pandemic. And this is leasing leading to rising rents, And rising rents is leading to rising capital values. And that's, you know, a good place to be as a as a property owner.

11:32 And, clearly, the rising values is attract attracting investor interest as well, and there's a degree of supply and demand imbalance on both the occupational side and the investment side. And the charts on the right just show this is more recent. So this isn't looking back for a year. It's literally looking back over the the latest three months data that's available.

12:00 Yeah. All sectors are delivering rental growth and capital growth and and even just, you know, London is sort of top of the chart, so to speak. But even in the Southwest, that's, you know, to my mind, pretty respectable growth for for only a three month period. The next slide is the office market. And purposefully, we've put the charts on the same scale as as as the preceding slide. So you can see the relatively lackluster growth in offices relative to industrial. And I think it shouldn't be underestimated how disruptive work from home was to the property market and the office property market in particular. I don't think companies could be thinking about new space when they weren't quite clear in their minds how long lockdown was gonna go on for and what their new working regimes would be going forwards.

13:02 I think and we haven't labeled up these charts because, actually, you can't draw a lot of conclusions from what's happening in different locations. But I think there are some common themes. And I would say that specifically now, you know, as as occupiers are returning to the sort of the the leasing market, what we are seeing is some common themes around quality of space, occupier amenities, sustainability credentials. They're all becoming increasingly important. And I think that there's a dislocation in the market between the better quality assets that offer those amenities or or have those characteristics versus those that don't. And I think that's why the chart on page 17 is kind of quite subdued because, actually, it's the average of these different type of assets with those characteristics.

14:07 But, you know, we're we're positive on this sector. You know, we've had quite a lot of leasing success in this sector, and our view is it's only gonna get stronger as as time moves on and and things become more normalized. On the retail sector, I mean, that saw a marked write down during the pandemic, especially with it was the sector where occupiers were most likely to not be able to pay the rent. I think, actually, offices saw the highest rent collection in the pandemic across the industry.

14:47 But there's a very clear winner at the minute in this sector, and that's retail warehousing. The chart show you that for, you know, the sort of current rental value growth and indeed capital growth. But you are seeing a sector where rents have moved down significantly. In some sectors or subsectors rather, they're still drifting lower, but not with the same degree of write downs. And, again, this is the same chart as the preceding slides, but it does show that the rental growth is pretty limited. There's a little bit of rental growth in the retail warehousing sector, but the main growth that's been coming through, particularly in that subsector, has been from yield compression as as as basically values were were probably written down too much during the pandemic and and have now reversed.

15:47 So the next few slides are about our own portfolio and kind of putting all of that into context. So we delivered a total property return for the year of 24% versus the market of just under 19. That was driven by all sorts of things, but primarily our weighting to industrial assets, our weighting to retail warehouse assets, and then the underlying activity in in the portfolio. So the portfolio itself rose by just over 20% in the year. We were able to grow contracted rent, passing rent, and actually the underlying rental value of our properties. So know what they're leased for, but what they'd be worth if they were leased in the market also rose, and that was by 5%.

16:41 And we grow grew occupancy from 91 to 93% during the year. That was primarily through leasing activity in the office sector, but we did see positive activity across all three sectors.

17:00 The next slide just shows the kind of activity that we had recognizing the disruptions of the pandemic as far back as the start of the financial year, 34 lettings, 21 lease regears, 12 rent reviews. We invested 10,000,000 back into the portfolio, upgrading space, making energy efficiency improvements, etcetera. The transactional activity was all above March estimated rental values. So that's positive. And rent collection, I think I've mentioned, was back to pre pandemic levels. Looking at each of the sectors in turn, our largest proportion of the portfolio is in the industrial sector.

17:48 We're currently running at 98% occupancy in that sector. It shows again, shows the strength of demand. Lettings key lettings during the year were in Barking, which is within the m 25. Gloucester, which we bought literally at the start of the year, and Rugby is a warehouse that we we put a short term lease on during the pandemic and managed to release it again within two years, 11% ahead of ERV. Generally, I would say, if you look at the chart on page 22, we've put in there the average capital values and average rents in each of those sectors.

18:33 I mean, I would suggest those are not demanding numbers relative to the market, recognizing rising construction costs.

18:44 You know, certainly, of you in UK and to perhaps a lesser extent, Southeast are very close to cost of construction, less so within London, but clearly, there's a there's a land cost that needs to think about. And London is attractive because, clearly, the sheer number of people that you can serve from these sorts of units and also, you know, the the the sheer lack of supply in and around London. A lot of, you know, former industrial land has gone to, you know, residential or other such alternative uses. In the office sector, occupancy is 87.

19:32 That's up from 82 last year. So that's where the big increase has come. Lettings in Kent, in Glasgow, in London, St. Albans, Bristol, Marlow, you know, across the board. So so encouraging activity there. And the common theme, I would suggest, across those assets is, you know, the quality of them, the amenities, you know, and in this kind of post COVID world, meeting what occupiers want. You know? Our focus on occupiers is is a big part of what we do. Again, I've put in the charts there on average capital values and average rents. You know, again, we don't think these are demanding at all.

20:19 And, clearly, the biggest upside coming through this part of the portfolio is the the vacancy and getting that space leased, and I'll talk about that in a minute. Retail and leisure. I should have mentioned earlier, but two thirds of our retail and leisure portfolio is in retail warehousing. We now don't have a single vacant retail warehouse within this element of the portfolio. We let two during the year in Berry and Swansea, and we've recently let the flagship retail units in our building in Covent Garden. We had, you know, sufficient interest in that that we were able to achieve a rent 22% ahead of ERV.

21:09 Occupancy is at 93% in this part of the portfolio. And, actually, there's a building where it's a leisure building, but part of it, we've converted to offices, and that office element is included in these numbers. So if you actually strip that office piece out from here, our occupancy is running at I think it's 98% in this bit of the portfolio, which we think is encouraging. The next slide just talks about vacancies. In total, we've got 3,600,000 of upside from void assets. They're all detailed there. I won't go into great great detail on them. The common theme is that they've either just been refurbished because they've relatively recently come back or they're under refurbishment at the minute. And you can see from the photos, we've got amenity space, outside space, very nice receptions, and and these are all attributes that that occupiers are looking for at the minute.

22:15 We've introduced at at the start of this calendar year rather than financial year, something called PICTON SWIFTSPACE, and this is really aimed at the office sector and where we have smaller units within our buildings. Most of our buildings are multilet in the office sector. So where we have smaller suites providing a more flexible and tailored occupier kind of leasing solution. It's called SwiftSpace because we want people moving in swiftly. You know, this is about not signing up to a 50 page lease. It's a short form lease. It's not having to commit for five or ten years. It's, you know, committing for a shorter period, but, you know, this is where the market is for smaller suites at the minute. And, you know, only just launched, but I think we've done four or five of these type of deals already.

23:15 And, clearly, you know, occupiers in buildings is a good thing. Not only are they paying rent, but you've got, as a landlord, no void service charge and no empty business rates, and that they're they're really aimed at that part of the market. We've bought a couple of buildings in the year. So on the next slide, this is an industrial estate we've bought or two industrial estates rather we bought in Gloucester. We bought the left hand side of the picture in September, October last year, and we bought the right hand side of the picture from a a a different owner in February of this year. We've now got a third near 30 acre site in the center of Gloucester here. We've bought off very low capital values and rents per square foot.

24:04 There's good occupational demand for this estate And recognizing that it's in the city center and has riverside frontage, we think is likely to lead to alternative use opportunities going forward. So that's clearly something that has to be worked up From a planning perspective, it won't happen overnight. But in the interim, you know, we're getting a very healthy 6% plus income return of this asset. We sold one small retail asset to a local authority during the year, and that was at a premium to that's where we were at March last year. Following the year end, we've just bought a block in in Central London.

24:52 It's right by Olympia. That particular space is going undergoing a big redevelopment at the minute. Theaters, concert venue, all added on to the exhibition halls. We think that's gonna lift the area. Hotels are going in there as well, really gonna lift the area. We've bought this off what we think are very low rents. This particular building, it's a period building. The facade is original, but behind it, it's it's effectively open plan floor plates in each individual building. And because it's listed, there's no empty business rates. So from a cash flow perspective, this is quite interesting.

25:39 And this is a a classic asset that we can roll SwiftSpace into. And, again, we think that pricing is attractive, lower initial yield, but we think we can push this up to 8% as we grow occupancy in the building. The final slides are about being responsible. And, you know, I think as a public company, governance is at the heart of what we do. We have an independent nonexecutive board, and, you know, things flow rightly so from the top downwards. So governance and advocacy, really important. Clearly, property assets have a a factor on climate change, and that's something that we are heavily focused on.

26:35 And stakeholder engagement is really important because the analysis we've done would suggest that around 70% of our carbon emissions come from occupiers using our buildings rather than from what we do with our buildings, you know, the supply of electricity that that that that we have. So all three are connected. And quickly, I'm I'm not gonna go through these in great detail, but but a few things. So in terms of governance and advocacy, you know, this year, we joined the Better Buildings Partnership. This is on the next slide. Yeah. We joined the Better Buildings Partnership, and we're a signatory to their climate change commitment. We've published our sustainability policy as well. Within your our annual report this year, we've reported under the task force for climate related disclosures, and that's looking at the climate risks within the portfolio.

27:35 On the next slide, I mean, I suppose the key thing is that we've published our pathway to net zero. That sets out a very clear plan as to how the business is gonna become net zero carbon by 2040 is the date that we've chosen. We've also improved the APC ratings across the portfolio. This is a kind of business as usual now piece and factored into our bid business plans, but 70% of our portfolio is rated a to c at the minute. As we're refurbishing assets, we're removing gas supplies, which again reduces the carbon emissions and various other measures. And then on the next slide, I suppose the key thing is that, you know, the whole team has undergone quite extensive sustainability training.

28:29 Some of the team are actually involved with the BBP on their responsible property management toolkit. And quite a lot of the year was spent, you know, working with occupiers, helping them come back to the office safely, you know, and all the things that the the pandemic threw up at the start of the year. Our pathway is on the next page. As I say, you know, you can look at these slides subsequently. But, really, we're following a stepped process in terms of how we'll reduce emissions, you know, actually physically reducing them first rather than just moving to a kind of offsetting phase. It's quite all encompassing what we're doing. So we're looking at whole life cycle. So, you know, the carbon in the construction of the building, the life cycle, you know, through ownership carbon, and then if you're redemolishing or refurbishing or repositioning that as well. And we're looking at this whole scope. So that's our emissions, both direct and indirect, and those of our occupiers.

29:41 Anyway, I'm going to sum up and then maybe after that have some questions. So in terms of an outlook, I think the the overriding message is that the the fundamentals within the property market are encouraging, you know, for a lot of space. You know, demand is good and supply is limited. That's especially so in the industrial sector. In the office sector, as I've said, that applies to the better quality assets that meet what occupiers want. And in the retail sector, it's still more focused towards retail warehousing, and that's probably the sector where I'd say demand is still a little bit thinner as we're still, you know, coming out of the pandemic, and there's there's there's more vacancy generally in in the high streets and elsewhere.

30:48 PICTON's had a long history. In fact, I think it's our strapline, you know, of being occupier focused and opportunity led. I think that's really important for the market that we're going into. I think it's really important around ensuring that what we do around emissions doesn't leave us with any sort of residual stranded asset risk. Our debt's fixed. As I've explained, that's really important in terms of the underlying cost base of of the business, and we've got firepower for future acquisitions. And there's also ignoring market movements, and I've explained, I hope, on previous slides why I think rents are gonna move forwards, but ignoring that for the minute. If you look at our underlying business and you look at where where rents rental income is to where it could go to, there's quite a lot of upside coming through. Leases we've already granted, but are in rent free periods from the vacancy that I've explained on the previous slide and also where market rents are higher than passing rents. So as lease events come through, we can capture further growth there.

32:03 So we're very positive about our business. We've built up a great track record, and I hope that's been helpful and informative for those of you listening too. Michael, that's great. And thank you very much indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that situates on the right hand corner of your screen. But just while Michael takes a few moments to review those questions submitted already, I would like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. Michael, as you can see, we've received a number of questions throughout today's presentation, and thank you to all the investors for submitting their questions. If I could please just hand back to you to run through that Q and A tab and where it's appropriate to do so. If you could please just read out the questions and give your response, and then I'll pick up from you at the end.

32:53 Thank you. Thank you. So the first question is what does the pipeline look for new acquisitions? And, clearly, I can't talk about specifics, but definitely, there's increased deal flow in the market. We are actively looking across sectors. So at the minute, we're taking very much a kind of bottom up approach, looking to find value in that way. Our recent well, our most recent acquisitions have all had a quite significant residual value underwrite.

33:44 So we've very much been thinking about protecting on the downside as well as looking at what future upside might be. Yeah. And I I can't talk about specifics, but, you know, measured sort of selective acquisitions is on our agenda. And, clearly, just to maybe state the obvious, but, you know, if you've got a a cost of debt at three and a half and you can buy real estate, say, at 6%, then there's clearly an income arbitrage there as well as what one would expect to do on the capital side that clearly has a positive impact on on earnings and dividend cover.

34:41 Hopefully, that answers that. I've also been asked a question about the ideal split of the portfolio between industrial, office, and leisure. Well, that that kind of can be a different answer every year because markets don't move equally. You know, you could have easily said in 2020, you didn't wanna own any real retail assets. But as you've rolled forward a year, you say, actually, I'd I'd like a significant proportion of retail warehouse assets.

35:27 Property generally has round trip costs of around 8%. That's because of stamp duty in particular, but the the legal and other transaction fees in in buying and selling property. So we have to take a slightly more long term view around that. But I think we feel the portfolio is well positioned now. And you could say, well, you would say that, Michael. But the point being that we're we're overweight to industrial, we think that is the sector that at the minute still has the best tailwinds behind it, the structural changes that that that have happened and and we think will continue to happen. There's there's plenty of demand from plenty of different types of occupiers.

36:21 Although offices didn't have such a good year last year, our view is that this year will be considerably better. And I think retail, which is the smallest component of our portfolio, whilst it's had some rebound, you know, we are going into a tighter period from a, you know, disposable income perspective, rising energy, you know, household budgets. So that's an area where we're more selective. But our view is that the property market is huge. We're a relatively small company. And, actually, it's as important to be stock specific than it is sector specific. And the comments I made about offices, I think, reinforce that.

37:07 So that's, I think, my answer to that. So there's a question about how are you looking to future proof the portfolio from an ESG point of view. So maybe that's just a little bit of color on what I've said already. So there there there's sort of two aspects to well, the ESG in itself is a huge area, and and we can talk about the the the social and the governance separately. But if if we talk about from a sort of sustainability point of view, which is, I think, more relevant for the portfolio, there's kind of two two risks. You've got your physical risks, I what is climate change gonna physically do to our buildings, and then you've got transition risks.

38:03 So if you look at the kind of physical risks, you know, we have to think about what what you know, are we concerned about coastal erosion with any of our portfolio? Well, no. Are we concerned around flooding? And there's two types of flooding. You've got river flooding principally, and then you've got, well, heavy downpours, and could that cause an issue? So, you know, we've been through this whole process here. You can't physically move assets, but you can make and have preventative measures. To just give a a really small example, what we're seeing now in The UK is it's it it feels to us that it feels drier longer, but when it rains, it's more intense downpours, and we're seeing that in our portfolio.

38:53 And the simple things like increasing the size of your gutter and your downpipes allow more water to be carried away in heavy rainfall. That's just one example. Then you've got the whole piece around energy efficiency. So this is, you know, LED light lights in buildings, really smart and efficient heating and cooling systems, building management systems, and, you know, sensor led lighting so you don't unnecessarily waste. I think a lot of climate mitigation is about not wasting things. So we're doing lots of things across the portfolio. They're built into our either property management plans or more strategic asset management plans. But if you come from a philosophy of of of not wasting, you know, anything and and, you know, refurbishing buildings rather than demolition, for example, all sit in that camp. And we've slowly, over time, been gradually improving EPC ratings.

40:01 We we have we we we look at them with some skepticism, EPC ratings, but but they are interlinked with government legislation, something called minimum energy efficiency standards. And not having the right EPC rating is a transition risk, and that's why we're gradually over time improving the portfolio. We're not doing it all at once. It will be uneconomic and and unnecessary. But where there are lease events, you know, we're looking to upgrade assets, and we have something. It's, you know, asset refurbishment guidelines, and there has to be a very good reason why an asset isn't refurbished to a b rated EPC on on on refurbishment.

40:50 And just slight aside, but but this particular building, which is a 125 years old, it's in Covent Garden, we've just refurbished this and released it. Prior to refurbishment, this was an e rated EPC. It's become a b. We have solar panels on the roof, which subsidizes our common parts electricity. And all those features that I just mentioned about lighting and cooling and the way the building is run, you know, are all within this asset. So it's not that difficult to do if you can do get to a b in a period property with I'm just looking at the glass in some of the windows. It's probably still a 100 years old. It's it looks like it's that age.

41:36 Anyway, hopefully, that answers that question. Average lease length on our property leases. From memory, it's just under five years. It's fairly standard now in the property market for people to take ten year leases with a break at five. That that's the the the kind of market norm. For certain assets, it's definitely longer. And, you know, I've just touched on the swift space and the more flexi leasing part where people are contributing or signing up perhaps for for one or two year terms. Generally, though, the longer lease people take in the market, the more rental incentive there is, and we don't particularly like giving long rent freeze or incentives.

42:25 So shorter leases sort of suit for us. You know, if you manage the building well, it's a good quality building, people generally don't leave, and that that's a key part of what we do. Someone's asked, what's the typical annual spend on upgrades and refurbishments across the portfolio? This year, it was 10,000,000, which is a large year for us, and that reflected a number of assets coming back, not because of the pandemic, but just simply during that that period. And there was a little bit of delay in mobilizing on some of the early work because it just wasn't wasn't possible. So this year, we did more than we would ordinarily do. Over the last three years, it's been, I think, memory, 15,000,000.

43:18 Jay Jay, our head of asset management, mentioned yesterday. And so kind of a 5,000,000 a year is a, I think, a good good good average. Probably the well, the costs are going a lot up a little bit anyway for two reasons. One is the cost of any building works seems to be going up everywhere in The UK, and then we're just spending that little bit extra over to make sure, you know, buildings are as energy efficient as possible at the same time. So I think if I've read my screen correctly, that that is the end of the question. That is correct. And thank you very much indeed for addressing all of those questions that came in from investors this morning. And, of course, Michael, if there are any further questions submitted today, we'll make these available to you immediately after the presentation has ended for your review. And ladies and gentlemen, we'll publish those responses where it's appropriate to do so on the investor meet company platform.

44:13 Michael, perhaps we're redirecting those on the call to provide you with their feedback, which I know is particularly important to yourself and the company. If I could please just ask you for a few closing comments to wrap up with, that'd be great. Yes. Well, just just to say, you know, this is a first for us using Investor Meet. We hope you found the presentation informative. We've got lots of information on our website around the assets we own, what the company has been doing. Our annual report is now actually available. And please do get in touch if you would like anything else, but thank you for your time. Michael, that's great. And thank you very much indeed for taking the time to update investors today. I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations.

45:06 This will only take a few moments to complete, but I'm sure would be greatly valued by the company. On behalf of the management team of PCTN PROPERTY INCOME LTD, we'd like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all.