LONDON (Alliance News) - Picton Property Income Ltd on Tuesday said its portfolio total return outperformed its benchmark, with its stronger performance due to its portfolio allocation, asset management and disposal strategy.
Picton said its EPRA net asset value per share grew to 78.50 pence from 77.20p at the end of its financial year on March 31 and from 72.80p the prior year. Picton's net asset value rose to GBP423.9 million from GBP417.1 million at the end of March and GBP393.1 million the prior year.
The company posted a portfolio total return of 3.9% for the six months ended September 30, ahead of the 0.2% delivered by the MSCI IPD Quarterly Benchmark.
"We have again outperformed the MSCI IPD index over the period, helped by our high industrial, warehouse and logistics exposure. In addition, our investment activity over the period has further enhanced performance and highlighted that we are still able to achieve sales ahead of valuation, even in this more uncertain environment," the group said in its statement.
Picton said it completed GBP45.0 million of central London office disposals during the six month period, including GBP17.3 million after the end of its first half.
Picton said its industrial sector exposure rose to 39% from 36% at the end of its financial year, office exposure reduced to 34% from 39% and central London office exposure was down at 13% from 15% at the end of June.
The group lifted its interim dividend by 3.0% to 3.40p per share, from 3.30p per share the prior year.
Picton said it was "naturally more cautious" in its outlook, in particular disruption that may occur as a result of the UK's pending departure from the EU and the impact of the recent US election. However, the company said it was "equally of the view that opportunities are likely to arise as a result of these uncertainties".
"Asset backed investments which offer an attractive income profile, such as commercial property, will continue to be sought after in a low return environment. The pricing adjustment over the summer period has to some extent made commercial property more attractive and we are confident that we will be able to take advantage of these conditions and build on the progress not only of the last six months, but of recent years," Chairman Nicholas Thompson said.
Shares in Picton were up 2.2% at 73.32p on Tuesday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Picton Prop (PCTN)