- LondonMetric Property
- 31 July 2026 09:00:36
Source: Sharecast
Picton shareholders will receive 0.190 LondonMetric shares and 0.894 SREIT shares for each Picton share, valuing the company at 78.7p per share - a 7% premium to the stock's latest close - and around £404m in total. The offer also represents a 9.9% premium to Picton's three‑month volume-weighted average price and implies an 8.2% discount to EPRA net tangible assets.
On completion, Picton investors were expected to own about 4% of the enlarged LondonMetric and 48.4% of the enlarged SREIT. LondonMetric's stake in SREIT will fall from 11.1% to 5.7%, subject to a lock‑in agreement.
The consortium said the deal comes after an extensive strategic review and reflected the strong fit between selected Picton assets and the existing portfolios of LondonMetric and SREIT. It argued the joint‑offer structure provides disciplined capital deployment while keeping Picton's assets within the listed market.
For Picton shareholders, the group said the proposal offered improved earnings and dividend prospects, greater liquidity and visible income growth, while addressing the challenges Picton faces as a standalone REIT.
Separately, Picton reported a 0.7% drop in EPRA net tangible assets to 101.5p per share in the three months ended 30 June, delivering a 0.2% total return. Picton's portfolio saw a 0.4% like‑for‑like valuation uplift to £702.3m, with £4.8m invested across upgrades in Bristol, Manchester and Colchester.
Asset management activity included seven lettings securing £700,000 in annual rent, four renewals adding £100,000, four rent reviews increasing income by another £100,000, and the removal of two break options preserving £200,000 for five years. Picton also sold a non‑core industrial asset for £1.2m - 30% above its March valuation - while occupancy remained stable at 84%.
Picton declared an interim dividend of 0.69p per share alongside its recommended offer announcement.
After the quarter ended, Picton said it had a leasing pipeline worth £2m in annual rent, mostly in industrial, with terms agreed subject to contract. It also secured planning permission for a letting at Winnersh at £200,000 a year, which it said will complete shortly.
As of 0900 BST, Picton shares were up 1.74% at 74.78p, while LondonMetric stock was 0.21% firmer at 198.42p.
Reporting by Iain Gilbert at Sharecast.com
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