18 October 2016
PICTON PROPERTY INCOME LIMITED
(“Picton” or the “Company”)
UPDATE FOLLOWING RECENT DISPOSALS & DEBT REPAYMENTS
Picton (LSE: PCTN), is pleased to provide an update following the repayment of all its 7.25% zero dividend preference shares and revolving credit facility, together with asset disposals announced in August and October:-
- £45 million of NAV accretive disposals, reducing central London office exposure.
- Repayment of £15.8 million previously drawn under a revolving credit facility.
- Repayment of £29.1 million made to zero dividend preference shareholders due on 15 October 2016.
- Picton ZDP Ltd (LSE: PCTZ) delisted on 17 October 2016.
- As a result of this change Picton will be classified by the Association of Investment Companies (AIC) in the ‘Property Direct - UK’ sector only, rather than also in the ‘Split Capital Trust’ sector.
In terms of borrowings, on a proforma basis to 30 June 2016, the effect of the debt repayments and disposal proceeds are as follows:-
- Total drawn debt reduced to £205.2 million (30 June 2016: £249.7 million).
- Average debt maturity increased to 12.2 years (30 June 2016: 10.4 years).
- Loan to value ratio reduced to 29.6% (30 June 2016: 34.4%).
- Weighted average cost of debt reduced to 4.2% (30 June 2016: 4.4%).
- £53 million of undrawn and available debt facilities.
The Company will be providing further detail in its September NAV statement which is to be issued on 25 October 2016.
Michael Morris, CEO of Picton Capital commented:
“By repaying our ZDP’s and RCF debt, we have reduced our net gearing, lowered our borrowing costs and simplified our structure, all of which we believe are beneficial for the Company. We have minimal cash drag, whilst at the same time having immediate access to funds, should accretive opportunities arise.”
For further information:
Jeremy Carey/James Verstringhe, 020 7920 3150, firstname.lastname@example.org
Picton Capital Limited
Michael Morris, 020 7011 9980, email@example.com
Note to Editors
Picton is an income focused property investment company listed on the London Stock Exchange. Picton can invest both directly and indirectly in commercial property across the United Kingdom.
With Net Assets of £418.0 million at 30 June 2016, the Company´s objective is to provide shareholders with an attractive level of income, together with the potential for capital growth by investing in the principal commercial property sectors. www.picton.co.uk