Picton narrows losses on industrial rental growth

Picton Property Income has shrunk its losses and grown its rental income, while values showed signs of stabilising in the final quarter of its financial year. The listed owner narrowed its loss to £4.8m in the year ending 31 March, from £90m in 2023. The value of its portfolio, which consists of 49 properties, declined by 2.7% to £745m during the year. EPRA NTA per share fell to 96p, from 100p in March last year. However, the company outperformed the MSCI UK Quarterly Property Index for the eleventh consecutive year. Picton said it had grown its rental income and captured some of the reversionary potential in the portfolio through leasing activity and rent reviews during the year, particularly in its industrial properties. Net property income grew by 4.5% during the year, while passing rent was up by 3%. Chair Lena Wilson said: “These results demonstrate that we have been able to grow EPRA earnings despite the impacts of inflation, higher interest rates and a weaker economic backdrop.” She added that the portfolio had outperformed the MSCI UK Quarterly Property Index, boosted by its industrial exposure and strategy to reposition non-core offices for alternative uses. She said: “We have a resilient business model with long-term fixed rate financing, and we are confident in our ability to capture the significant income upside potential from our portfolio.”