Market Capitalisation £426.04M

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2019 Highlights

Picton at a glance

As at 31 March 2019

As at 31 March 2019

Our top ten occupiers

The largest occupiers, based as a percentage of contracted rent, as at 31 March 2019, are as follows:


Belkin Limited


Contracted Rent (£000)


Public Sector


Contracted Rent (£000)


DHL Supply Chain Limited


Contracted Rent (£000)




Contracted Rent (£000)


The Random House Group Limited


Contracted Rent (£000)


Snorkel Europe Limited


Contracted Rent (£000)


Portal Chatham LLP


Contracted Rent (£000)


TK Maxx


Contracted Rent (£000)


XMA Limited


Contracted Rent (£000)


Canterbury Christ Church University


Contracted Rent (£000)


Total 11,302 (£000) 27.9%

Chairman's statement

Nicholas Thompson

For the year ended 31 March 2019, I am pleased to report Picton delivered a profit after tax of £31 million, demonstrating further progress despite a more challenging economic backdrop.

Chief executive's review

Michael morris

We delivered a positive income return and capital growth from the portfolio during the year. Our conservative use of debt also had a positive impact.

Finance director's review

Andrew dewhirst

Dividends paid during the year were £18.9 million, 2% higher than the preceding year.

Our vision

Through our occupier focused, opportunity led approach, we aim to be one of the consistently best performing diversified UK focused property companies listed on the London Stock Exchange.

Our strategy

our strategy business model

Creating a diverse portfolio

We have established a diversified UK property portfolio and while income focused, we will consider opportunities where we can enhance either value or income.

Proactive asset management

Our occupier focused, opportunity led approach to asset management ensures we create space that meets our occupiers’ needs in order to maintain high levels of occupancy across the portfolio.

Depth of expertise

Our dedicated team have a breadth of experience across the UK commercial property market.

Stable recurring income

Our diverse occupier base generates a stable income stream, which we aim to grow through active management and capturing market rental uplifts. We maintain a covered dividend policy, which generates surplus cash, allowing us to reinvest back into the portfolio.

Delivering Value for


Our conversion to a REIT structure has improved our operational efficiency as we benefit from an established tax exempt regime which enhances shareholder returns.


We engage regularly with our occupiers to ensure we understand and meet their needs. As a responsible landlord we are committed to working with our occupiers to reduce the overall environmental impact of our properties.


Through investing in our properties and ensuring high occupancy rates we aim to have a positive impact on the local communities where we own assets. We seek to make a difference through our charitable giving policy and support local communities through our occupier matched funding initiative.

Working with our occupiers

Working with our occupiers is fundamental to what we do and assists us in identifying asset management opportunities, especially when occupiers need to expand and contract. Knowing what our occupiers’ business needs are allows us to work with them to restructure leases, increase lease lengths, and potentially enhance rents by, for example, surrendering leases where the passing rent is below the market level.

50, Farringdon Road, London

50 Farringdon Road is a 31,000 sq ft office building located in the heart of EC1 adjacent to Farringdon Crossrail station.

50, Farringdon road, london

Number of occupiers


Square Feet


We engaged with our largest occupier who occupied a 7,800 sq ft suite on a lease with a break in December 2021. They required additional space to facilitate business expansion and we agreed to upsize them by 50% into the final available suite in the building, resulting in their occupation of the entire first floor.

We entered into a coterminous lease of the new suite, generating income of £0.2 million per annum, 5% ahead of ERV and, at the same time, we varied their existing lease securing five-year income on the whole floor.

This transaction was a good example of our ‘rightsizing’ promise in action and the building is now fully leased.


Parc Tawe North comprises eight units of a combined 116,700 sq ft retail warehouse park. The property is located on the edge of the city centre in an established retail area.


Number of occupiers


Square Feet


Homebase, which entered into a Company Voluntary Arrangement (CVA) in August 2018, had proposed to reduce the passing rent on their unit by 90%. Recognising that better terms could be agreed elsewhere, we chose to serve notice to secure vacant possession of the unit. At the same time, we negotiated the release of a restrictive covenant to allow additional food retailing on the park.

Lidl, another of our occupiers, occupied a 10,000 sq ft unit on a lease expiring in 2023. We entered into an agreement whereby Lidl agreed to take the entire 35,500 sq ft previously occupied by Homebase. Following enabling works by us, Lidl will take a 20-year lease, with a break after 15 years, at an annual rent of £0.4 million, in line with ERV. The lease is subject to five yearly RPI based rent reviews capped at 2% per annum.

Having secured an anchor occupier for the largest unit on the park, we are pursuing the second stage of our strategy by improving the external areas and focusing on letting the remaining space.

Through this approach we have significantly mitigated the negative impact of the Homebase CVA.

Investing in our properties

We believe it is important to continue to invest in our assets, to mitigate the impact of depreciation, improve their attractiveness in the market place and enhance letting prospects.


Atlas House is a 25,400 sq ft office building located on the established Globe Business Park, with good access to both the M4 and M40.

Thames valley office, marlow

Number of occupiers


Square Feet


We have been able to substantially reposition the building through refurbishment, following an occupier downsizing last summer. High quality space has been created, which we expect to let approximately 40% ahead of the previous passing rent. In addition, we have comprehensively refurbished the common areas to include occupier amenity space, showers and an enclosed garden for the sole use of the building’s occupiers.

The refurbishment has just completed and is available to lease. The space presents very well against the competition and we believe will attract an occupier quickly.


180 West George Street is a Grade A headquarters building, located in the heart of Glasgow’s central business district, offering contemporary, open plan office space with occupier amenities including bicycle storage, electric car charging and shower facilities.

Central glasgow office

Number of occupiers


Square Feet


Following a comprehensive refurbishment, which completed just before the start of the year, the building provides some of the best quality space available in Glasgow’s central business district. Working with our occupiers, further works were completed during the period, including new office entrances and the installation of a building system monitoring platform, Asset IQ. This ensures we are running all of the systems optimally to save electricity and gas in line with our sustainability aims, and this will also result in reduced running costs for the building, to the benefit of our occupiers.

We let the fourth floor to Peninsula Business Services, securing a minimum five-year term at an initial rent of £0.2 million per annum, which is 15% ahead of the previous passing rent and 1% ahead of ERV. In another transaction, we moved an occupier’s break option out by a year, securing £0.2 million of income.

Enhancing value and income

We continually look to capture rental growth, thereby enhancing income, and where possible look to create value through restructuring leases. In some instances, if we believe a position has been maximised, we will look to recycle capital for better uses.


Parkbury Industrial Estate comprises modern units of varying sizes between 4,000 sq ft and 74,000 sq ft, strategically located alongside the M25 and close to the M1.

South east multi-let industrial estate, radlett

Number of occupiers


Square Feet


Increase in value


Increase in ERV


We have seen good demand for units on the estate over the year, with continued rental growth and units letting on average within two months of becoming vacant.

During the year we surrendered a lease of a unit securing a full dilapidations payment from the outgoing occupier. We then re-let the unit in its existing condition securing a minimum five-year term at an initial rent of £0.1 million per annum, 34% ahead of the previous passing rent and 13% ahead of ERV. The adjoining unit, which became vacant on a lease expiry, was pre-let on an Agreement to Lease prior to being refurbished, securing a minimum five-year term at an initial rent of £0.1 million per annum, 43% ahead of the previous passing rent and 9% ahead of ERV. The refurbishment was fully covered by the dilapidations claim.

Two leases were renewed, one for ten years and the other for five, at a combined rent of £0.3 million per annum, 39% ahead of the previous passing rent and 10% ahead of ERV.

One rent review was settled, increasing the passing rent by 42% to
£0.1 million per annum, 10% ahead of ERV.

The property is currently 93% let with the ERV 8% higher than at 31 March 2018, and the valuation having increased by 16% over the same period.


800 Pavilion Drive is a 51,000 sq ft office building located on Northampton Business Park with 223 car parking spaces on a site of two acres.

East Midlands Office, northampton

Number of occupiers


Square Feet


Premium to Valuation


In 2013 we put in place a ten-year lease with a break option in 2018. Recognising our ongoing relationship with the occupier we were confident that they would not action the break clause in 2018. We held the asset during this period capturing the upside as the regional office market recovered.

By waiting for the break to pass and securing a five-year term certain, we were able to capture a 54% valuation uplift relative to the valuation prior to the break notice. The sale, to a local authority purchaser, was completed at a 13% premium to the preceding valuation.

Stakeholder engagement

Our people

We value the contributions made by the whole Picton team. We have a strong and open company culture, with values that were co-created by our employees. We aim to have a positive business environment consistent with our values, with equal opportunities for all. Unlike many similar businesses, all of our employees share in the success of Picton through participation in the Long-term Incentive Plan and Deferred Bonus Plan.

Our shareholders

We run a regular programme of communication and shareholder engagement including one-to-one meetings with large shareholders as well as group meetings at the time of results announcements. All Directors normally attend the Annual General Meeting and are available to meet with shareholders.

Our occupiers

One of our key priorities is to work with our occupiers, so that we can understand their needs and aim to meet their current and future requirements. We use our expertise in asset management to provide modern flexible space that is safe, clean and energy efficient. We believe that it is important to engage with our occupiers on sustainability. In this way we can constantly strive to reduce our environmental impact.

Local Communities

We are committed to improving the impact of our buildings on local communities, whether providing space to local businesses, improvement of local areas or minimising the environmental impact of buildings themselves. We also support local communities through our occupier led charitable matched giving initiative.

The picton promise

At Picton, we are always seeking to improve our occupier’s experience, which is why we created the Picton Promise: five key commitments that underpin every aspect of the occupier experience we provide.

Reporting Against EPRA Sustainability Best Practice

Occupier focused, Opportunity led