Edison Investment Research Analyzes Picton Property Income’s Strategic Moves to Enhance DPS

Edison Investment Research Limited discussed Picton Property Income (PCTN) in a recent flash update. The report highlighted a crucial dividend per share (DPS) increase for Picton Property Income, ahead of their fiscal year 2024 results, set to be released on May 23, 2024. According to Edison, Picton has announced a Q4 2024 DPS of 0.925p, marking an increase of 5.7% from the previous quarter, positioning the DPS at an annualised rate of 3.7p. This rate not only surpasses the pre-pandemic figures but also climbs above the 3.5p seen in FY24.

The increase is attributed to robust market conditions that support rental growth and active asset management strategies such as the recent sale of Angel Gate. This sale aligns with Picton’s broader strategy of value enhancement through the strategic repurposing of office assets, allowing for the recycling of capital into further portfolio improvements. Edison has not modified its forecasts post-Angel Gate sale but plans to revisit projections following the full FY24 results. The anticipated changes are also reflected in the projected FY25e DPS.