Picton Property Income has announced a 1.6% fall in its net asset value to £208m, or around 60p a share.
The movement was driven primarily by exceptional costs of £1.1m from corporate activity and management internalisation, and the first fall in the value of its property value since 2009 – a marginal drop from £425.8m to £425.6m.
On the company’s abandoned proposal for a merger with the Invista Foundation property trust, Picton said: “The board considered a merger to have significant merits but, having outlined these merits to the board of IFPT, it did not prove possible to structure a recommended transaction on a basis which would have been to the benefit of Picton’s shareholders.
“Accordingly, we withdrew our proposal to the board of IFPT in October 2011.”
The investment company said it had formally commenced the process of seeking to refinance its circa £200m debt pile.
It has held discussions with a range of “major financial institutions” and will now seek formal financing proposals aiming to put new debt in place in the first half of 2012.
Over the period, the company completed ten lettings, seven lease renewals and two active management initiatives and the aggregate headline rental value of the lettings achieved over the quarter was £442,000 pa. Occupancy was 92%.
Chairman Nick Thompson said: “Having successfully completed our internalisation process, we have achieved a significant milestone for the company. Our focus is now on putting in place new debt facilities whilst continuing to manage actively the underlying portfolio to enhance both the income and capital position.”
Chief executive Michael Morris said: “Against the wider economic background, we are pleased to have been able to enhance occupancy over the period. In the short term, we expect conditions to remain challenging, so our focus will be on initiatives to further enhance income through reducing vacancies and mitigating costs.”
bridget.oconnell@estatesgazette.com
