12th Nov 2013 11:47
LONDON (Alliance News) - Picton Property Income Ltd. Tuesday said it has swung to a first half profit, after making gains on its portfolio investments.
Pictor Property Income said it made a GBP9.9 million pretax profit for the six months ended September 30, compared with a GBP8.8 million pretax loss for the corresponding period the year prior.
The main reason for the swing to profit was that GBP17.5 million losses on investments reported for the half year 2012 failed to repeat, instead turning into a GBP3.4 million gain.
"This has been an important six months for Picton during which we have increased our net assets and seen a marked re-rating of the company's shares. These now trade at a premium to net asset value and, as such, we have been able to raise and deploy equity effectively, which has strengthened the balance sheet, provided efficiencies through growth and further created opportunities within the property portfolio," Chairman Nicholas Thompson said in a statement.
"The conditions within the wider UK property market are now more favourable and combined with our prudent dividend policy, capital structure, low fixed cost of debt and portfolio composition means we are well positioned to build on this market momentum," Thompson added.
Rental income was down to GBP15.6 million, compared with GBP16.2 million last half year, as there were more vacancies in the portfolio from the latter part of 2012 through to early 2013. However, Picton said it was already seeing improved occupancy that should lead to income growth.
Picton shares were Tuesday quoted at 54.02 pence, up 0.04%.
By Samuel Agini; [email protected]; @samuelagini
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