Picton Property Income faced a tough quarter, with net asset value per share falling by 5.7% to 54p per share in the three months to 30 June.
A 2.7% fall in underlying property value during the period helped to depress NAV. Retail warehouses and rest of UK offices led the decline in values, falling by 7% and 5.6% respectively.
Retail warehouses make up 6.8% of Picton’s portfolio, while rest of UK offices make up 18.5%.
The company has focused on refinancing its debt during the first half of the year, securing two new facilities totalling £209m from Aviva and Canada Life.
These replace an existing £188.5m CMBS facility and bank loan, due to mature in 2013. Picton chose to exit from an interest rate swap with a break cost of £3.4m as a result of the early refinancing. Total gearing stood at 50% at the end of the quarter.
Nick Thompson, chairman of Picton, said: “The primary focus over the period was to ensure the refinancing of our secured borrowings. This was successfully completed following the quarter end and now provides the company with a significant saving on its future interest costs.
“We continue to operate in markets that remain challenging, but with approximately 40% by rental value of our total void within the wider London markets, we are positive that our portfolio initiatives can enhance this position.”
sophia.furber@estatesgazette.com
