22nd Jan 2014 11:20
LONDON (Alliance News) - Picton Property Income Ltd Wednesday said its net asset value (NAV) rose 6.7% in the fourth quarter driven largely by a valuation uplift of 3.3%.
The Guernsey-based closed-ended investment company said its NAV has increased to 53.8 pence per share at December 31 2013 from 50.4 pence per share at September 30 2013, while its net assets were valued at GBP204.3 million at the end of December, up from GBP180.3 million at September 30.
"The increase in NAV over the past quarter has been driven by a valuation uplift of 3.3%, enhanced by our capital structure and covered dividend," Chairman, Nick Thompson, said in a statement.
"Improving conditions in the broader economy have had a positive impact on valuations, arising from increased confidence and also activity in the regional markets outside Central London," he added.
Thompson said against this backdrop Picton is considering its "optimal" long term funding arrangements.
In addition to the rise in NAV, the firm has also seen an improvement in occupancy for the fourth consecutive quarter to 91% at the end of December 2013 compared with 90% in September 2013.
During the quarter, the firm acquired a further building at Angel Gate, EC1 in London at what it called an "attractive entry price," while it sold an industrial estates in Portsmouth ad Reading for a combined GBP4.8 million.
The firm let a remaining unit at River Way, Harlow at GBP340,000 per annum, 8% ahead of ERV. The estate is now fully let.
In the retail arm, the firm re-let two smaller vacant units in Huddersfield following tenants failures in December 2012 and July 2013 respectively.
At Stanford House in Covent Garden and following completion of the office lettings, Picton received planning consent for a change of use to residential on the 2nd, 3rd and 4th floors, which can be implemented from 2015 onward.
During the period, the firm also raised GBP11.9 million through the issue of 22.2 million shares at 53.5 million, a 6.2% premium to the September NAV
The stock was trading at 58.35 pence Wednesday morning, up 1.60 pence or 2.8%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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