Edison Highlights Accretive Portfolio Repositioning of Picton Property Income

On 9th April 2024, Edison Investment Research Limited issued a bulletin focusing on Picton Property Income's (PCTN) strategic disposal of Angel Gate, its second-largest office asset and biggest portfolio void. The asset was sold for a consideration surpassing its Q323 valuation, aligning with the firm's goal of selectively repurposing office assets and accruing capital efficiently. This transaction is anticipated to bolster net asset value (NAV) and enhance earnings.

In a bid to navigate the structural challenges within the office sector, Picton is intensifying its portfolio repositioning efforts by diverting focus from office properties. Notable developments include the exchange of contracts for the sale of Longcross in Cardiff, which constituted 12% of the H124 portfolio void, to a reputable developer of purpose-built student accommodations. Additionally, with a vacant building in Charlotte Terrace, London, accounting for 11% of the H124 portfolio void, a planning application for its conversion to residential use has been lodged. Concurrently, the appointment of Saira Johnston as Chief Financial Officer effective 1 April was confirmed, with no adjustments to the company's forecasts. Picton's FY23 results are scheduled for disclosure on 23 May 2024.