13th Jan 2026 11:17
(Alliance News) - Picton Property Income Ltd on Tuesday said it is undertaking a strategic review, with options on the table including "a merger with other UK REITs".
In response, Picton shares rose 7.7% to 83.44 pence each on Tuesday in London.
The Guernsey-headquartered real estate investment trust said that it is in a strong financial and operational position, but has started the review process because "the board believes it is important to be proactive".
Saying the review will "consider options to maximise value for our shareholders", Chair Francis Salway commented: "Whilst we have delivered upper quartile property returns since launch in 2005, and our twelve-month share price performance is over 29.8%, Picton shares continue to trade at a material discount to EPRA net tangible assets which doesn't fully reflect the underlying quality and performance of the business."
Picton intends to consider various possibilities under a formal sales process, it said. These include "a merger with other UK REITs, alongside other forms of consolidation, combination, or selling the entire issued share capital of the company".
The trust will also consider "other corporate actions, including but not limited to, selling the company's portfolio or subsidiaries (or portion thereof) and returning capital to shareholders".
Picton said the current environment has "significantly constrained the ability" of listed firms in the UK real estate sector to raise new equity, and that it expects markets "to remain unsupportive to new issuance in the short to medium term".
This, Picton explained, restricts its ability to scale organically through raising capital.
"The company has successfully attracted new investor interest...and has strong shareholder support, however the board recognises that the landscape of its investor base is evolving," Picton continued. "As institutional investors have consolidated, their capital has increasingly been allocated to larger investment vehicles which provide economies of scale and address their own liquidity requirements and exposure limits.
"The board recognises that scale and liquidity are not the sole determinant of performance or rating but is also cognisant of the issues facing the listed UK real estate sector and is mindful that Picton's current size may no longer be optimal as a standalone listed entity."
By Emma Curzon, Alliance News reporter
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