Picton Prop Share Price (PCTN)

If you buy SREIT directly

At 47.28p: you get 3.588p dividend - yield ≈ 7.6%

If you buy Picton at 71.4p, Right now you own: Picton paying 3.8p yield ≈ 5.3%.

So today your income is lower than SREIT.

But if the deal completes, Your 71.4p purchase converts into a package worth about:

76.9p (based on current LMP/SREIT prices).

And that package generates: SREIT dividends plus LMP dividends.

That future package income is about: 5.48p annually.

Now: On your ORIGINAL COST (71.4p)

your future yield becomes: 5.48/71.4 ×100≈7.68%

But notice something important The market already partly adjusted Picton yield upward to reflect this.

If Picton were still, say, 60p: the implied post-conversion yield would be enormous, and everyone would pile in.

So the market has already arbitraged part of the opportunity away.

The actual remaining arbitrage is: You pay:

71.4p For something currently implied to become: 76.9p worth of securities. That’s the spread.

If you look purely at yield, then: Schroder Real Estate Investment Trust already gives you ~7.6%

directly, immediately, and without deal risk. So the higher future look-through yield from Picton is not really “free compensation.”

Because the market already repriced Picton upward to reflect that future income stream.

So from a pure income perspective: you are not obviously being overpaid for taking merger risk.

That’s an important realisation. The remaining reason to buy Picton instead of SREI is therefore not mainly yield.

It becomes: spread capture, possible rerating, LMP exposure, and optionality around the deal.

In other words: the “arb” is mostly: capital appreciation / conversion economics

However the new deal gives better composition of the income stream, not necessarily higher income.

Instead of:

100% Schroder Real Estate Investment Trust exposure,

you potentially end up with:

mostly SREIT, plus meaningful LondonMetric Property exposure.

And LMP arguably has:

stronger market perception,

better liquidity,

lower discount risk,

more institutional support,

and arguably higher-quality portfolio characteristics.

So you’re effectively:

diversifying the same broad REIT/income thesis into a stronger blended vehicle.

I don't hold all that many so it won't make much difference to the outcome, either way, but will definitely be voting against.

I think the consortium own 10% of the shares, also see TR Property owning 10%, so cant see why this wont go through. SREI pays a higher yield than PCTN, and has a refurb->improve value enhancing strategy.

https://quoteddata.com/2026/05/londonmetric-and-schroder-real-estate-launch-403m-all-share-bid-for-picton-property/

Richard Williams, senior analyst at QuotedData, said: “SREI shareholders will come out of this proposed deal very well, with its portfolio swelling by around £375m and its portfolio weighting largely unaffected – meaning it will continue to be tilted towards the higher growth logistics sub-sector. It is getting these assets, which will be immediately earnings accretive, at a discount to book value too. Size and liquidity of shares have become of great importance over the last few years, and this deal would put SREI on a better footing, making it the largest REIT in the AIC’s UK Commercial property peer group. It is also good to see a lowering of the management fees within the proposed offering. This deal is kind of small fry for LMP these days, but it continues its growth through M&A as it expands its triple-net property portfolio.”

So long for a "strategic review to maximise value"... I hope this is voted off

can't imagine shareholders accepting as weak a deal as this. if i wanted lmp and srei shares i'd just buy them in the market. just done a back of *** packet calc and the value per pctn share is down to 75p. this type of deal makes one wonder if there is a hidden agenda to draw out a rival bidder. it raises a big question about the quality of pctn management. will definitely vote against.