The board of Picton Property has launched a strategic review that could see the firm sold or merged with another REIT.
In a statement, the REIT’s board said its shares had continued to trade at a “material discount” to its EPRA net tangible assets and as a result its ability to raise new equity had been constrained.
With the company in a “strong operational and financial position” the board said it had decided to be “proactive” and initiated the strategic review to “explore all options available to maximise value for shareholders”.
As part of the strategic review, the board said it would consider options for a merger with other UK REITs, alongside other forms of consolidation, combination, or a sale of the business.
Stifel Nicolaus Europe has been appointed as financial adviser with regard to the formal sale process.
Francis Salway (pictured), chair of Picton, said: “We have today launched a strategic review to consider options to maximise value for our shareholders. Whilst we have delivered upper quartile property returns since launch in 2005, and our 12-month share price performance is over 29.8%, Picton shares continue to trade at a material discount to EPRA net tangible assets which doesn’t fully reflect the underlying quality and performance of the business.”
