18th Oct 2016 06:55
LONDON (Alliance News) - Picton Property Income Ltd on Tuesday said it has reduced its net gearing, lowered its borrowing costs and simplified its structure after repaying all its 7.25% zero dividend preference shares and revolving credit facility.
Picton, in a series of transactions between August and October, sold GBP45.0 million worth of assets, reducing its exposure to central London offices.
In completing these disposals, Picton had said it would be able to repay both GBP15.8 million previously drawn under a revolving credit facility and to pay GBP29.1 million to zero dividend preference shareholders.
Picton on Tuesday said it had now completed these repayments, in light of which its total drawn debt has reduced to GBP205.2 million from GBP249.7 million at the end of June. Its average debt maturity has increased to 12.2 years from 10.4 years, and its loan-to-value ratio has reduced to 29.6% from 34.4%.
The company said its weighted average cost of debt has reduced to 4.2% from 4.4% at the end of June, and noted it currently has GBP53.0 million of undrawn and available debt facilities.
Picton said it will provide further detail on its September net asset value in a statement to be issued next Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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