Overview
Picton Property Income has published an update following the repayment of all its 7.25% zero dividend preference shares and revolving credit facility, together with asset disposals announced in August and October:
- GBP45 million of NAV accretive disposals, reducing central London office exposure.
- Repayment of GBP15.8 million previously drawn under a revolving credit facility.
- Repayment of GBP29.1 million made to zero dividend preference shareholders due on 15 October 2016.
- Picton ZDP Ltd (LSE: PCTZ) delisted on 17 October 2016.
As a result of this change Picton will be classified by the Association of Investment Companies (AIC) in the ‘Property Direct – UK’ sector only, rather than also in the ‘Split Capital Trust’ sector.
In terms of borrowings, on a proforma basis to 30 June 2016, the effect of the debt repayments and disposal proceeds are as follows:
- Total drawn debt reduced to GBP205.2 million (30 June 2016: GBP249.7 million).
- Average debt maturity increased to 12.2 years (30 June 2016: 10.4 years).
- Loan to value ratio reduced to 29.6% (30 June 2016: 34.4%).
- Weighted average cost of debt reduced to 4.2% (30 June 2016: 4.4%).
- GBP53 million of undrawn and available debt facilities.
PCTN : Picton cuts debt as it repays zeros