LONDON (Alliance News) - Picton Property Income Trust Ltd on Wednesday said it has sold its freehold interest in a high street retail unit leased to L'Oreal (UK) Ltd's skin care brand Kiehl's in Guildford for GBP3.3 million, reflecting a net initial yield of 4.3%.
The unit, which is leased to Kiehl's for a further 4.8 years at an annual passing rent of GBP147,500, was sold at a 9.2% premium to its valuation in September, and a 32% uplift on what was paid on its acquisition in 2010.
"We have taken the opportunity to dispose of this low yielding retail asset, crystalising the upside since purchase. Whilst only a small lot size, the healthy premium achieved relative to the September valuation is, we believe, encouraging," Picton Capital Chief Executive Michael Morriss said in a statement.
The news came as the property investment company said it made a GBP32.2 million pretax profit in the six months to September 30, compared with GBP32.0 million the corresponding half the prior year, as net property income grew by 25% to GBP18.1 million, operating expenses rose 21% to GBP2.2 million, and gains on investments fell by 12% to GBP22.0 million.
Net assets rose to GBP393.1 million at the end of September from GBP370.0 million at the end of March and GBP273.7 million at the same stage the prior year.
Picton Property Income increased its interim dividend to 1.7 pence from 1.5p.
Shares in the company were up 0.4% at 69.75p on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Picton Prop (PCTN)