The Lemon Fool

Been looking at Picton Property.

Yield 4% (about average), premium 1.6% (lower than most). Market Cap £600m (higher than most "UK Direct" trusts on the AIC site, but not a giant).

Fairly broad mix of assets; some warehouses, some retail, some offices, also a grim-looking hotel in Luton and Stanfords Maps in Covent Garden.

Any obvious downsides?

MM - well, you said it yourself. PCTN, after an extremely successful restructure since IRET days, now trades at a 4% yield & 2% NAV premium.

It is therefore fully valued at this stage in the CP cycle.

The technical 5-month Top Formation pretty well indicates that there is certainly not much point in buying at this level; and holders may well advisedly consider cashing in a great investment.

For those wanting to continue a stake in the sector, possibly consider Palace Capital ("PCA") on a prospective 5% Yield and an historic 12% NAV discount.

There is seldom money to be made buying propcos at a premium.

https://uk.advfn.com/stock-market/londo ... ice?java=1

Interesting, thanks. I like the idea of a property fund that isn't so concentrated in and around London. I hadn't heard of this fund; it seems Trustnet's screener doesn't include it under "UK Property", and DigitalLook has an odd dichotomy between "Property Investment Trusts" and "Real Estate", with funds assigned to one or the other depending on unclear criteria.

Will investigate further.

Worth taking a look at Custodian REIT (CREI).
At buy price of 115p it yields 5.6%
Pretty good spread of properties and (I think I'm right in saying) nothing in London.

Disclosure (I hold a lot)