Picton Property Income Limited (PCTN) Earnings Call Transcript & Summary

Good morning, and welcome to the Picton Property Income Post-AGM Investor Presentation. [Operator Instructions]. Before we begin, I'd like to let the following poll. I'd now like to hand you over to Lena Wilson Chair. Good morning.

Thank you, Alessandro, and good morning, everyone. As Alessandro said, I'm Lena Wilson, and I'm here at Picton, and I'm absolutely delighted that you've joined us today. If I can just introduce my colleagues Michael Morris, our Chief Executive; and Saira Johnston, our CFO; and Saira has just joined us. Saira, we're delighted to have you on board. So -- thank you very much. You will see that the results to the 31st of March were released at the end of May. We've just held our AGM following those results. And following this presentation today, we also have a Board meeting. Our assets are valued externally every quarter. So our NAV and dividend announcements are both expected tomorrow. Because of that, Michael and Saira will be presenting a review of last year, mostly, but with as much real time information and update as we can. And with that we'll be having a presentation then taking your questions, but I'll hand over to Michael.

Thank you, Lena. Thank you to everyone who's joined us. I'm sure there are many existing Picton shareholders, but hopefully, some people that are new to Picton. So just by way of background, we were established 19 years ago. We're listed on the main market. We invest in the core commercial sectors, a diversified portfolio focused on income, but nevertheless aiming to be, well, consistently best-performing diversified U.K. REITs. Over the long run, we've delivered property level out-performance against MSCI. We have a fully aligned management structure. We have long-term fixed rate financing. And as a business, we are looking to be net 0 carbon by 2040. Just a snapshot as at March, which was when the portfolio was last valued nearly GBP 0.75 billion property portfolio at 50 assets, a really diverse occupier base about 400 occupiers within the portfolio that deliver the rents that drive the income in the business. As at March, we have 91% occupancy, and the yield profile of the portfolio with a 5% initial rising to over 7% once fully leased. So some real embedded income upside potential within the portfolio, and we'll talk about that shortly. Nearly 60% of the portfolio is in industrial warehouse and logistics and is biased towards London and the Southeast. 30% of the portfolio is in offices, although we will talk about the steps we've been taking to reduce that office exposure and indeed reposition some of our office assets for alternative uses to bring that weighting down. And then 11% of the portfolio is in retail but specifically nearly 60% of that is in retail warehousing. So that's predominantly out-of-town stores in the U.K. So if I hand over to Saira, she can introduce the annual results for last year.

Thank you, Michael. Thank you, Lena. And I'm delighted to be presenting the annual results for the year ending the 31st of March 2024. As Lena mentioned, our results were announced back in May, and the concept of the summary today, we'll really focus on a high-level view of those results. And the details can be found in the appendices to the presentation and also on our website. So my slides will focus on the key messages within the annual report along with a couple of slides on our capital structure and our reversion in earnings growth going forward. So turning to this slide. This slide sets out the 3 key messages, which we focused on in our annual report. From a corporate perspective, we delivered robust financial performance, delivering earnings growth and a backdrop of higher inflation, higher interest rates and generally weaker economic backdrop. Our EPRA earnings were 4p per share and our NAV closed at 96p per share. Secondly, from a property perspective, our portfolio continued to outperform the MSCI index for the 11th consecutive year. And on top of that, we continued our long-term upper quartile performance since launch, and that's certainly a track record that we and the team here at Picton have worked hard over the years to continue to deliver that outperformance. Michael talked about some of the key statistics on the portfolio and that diversified portfolio, the strength of the portfolio has delivered 3% growth in not only our passing rents but also contracted rent and ERV growth, and so we see a 29% reversionary potential between the March passing rent and the March ERV. And we'll come on to talk about how we see that in the context of earnings growth going forward. The last point on the property portfolio is to note that we've continued to invest in our portfolio. We've invested about GBP 4.5 million in capital expenditure projects, and we've worked hard to make progress on EPCs, increasing our solar capacity amongst other things. The last key message for today is a reminder on our valuable long-term debt book. So we have a weighted average interest cost of 3.9%, which we is well below the current market rate and a conservative level of gearing at 28%. The value of that debt isn't seen in our EPRA/NAV, but it's been in our NGV of 101p per share. The difference between that and the 96p per share really shows the value of that long-term debt. So moving on to some more details within the annual results. As I said, we've delivered a robust set of financials for the year ended March 2024. Net assets closed at GBP 524 million or 96p per share, which was a reduction of 4% during the year, but we saw stable net asset values over the final quarter between the 1st of January 2024 and the 31st of March 2024. Our EPRA earnings were GBP 21.7 million for the year or 4p per share, which was an increase of 2% in the year. There's a bridge in the appendices, which shows the key driver of that increase. But the key message around that is really the growth in the underlying net rental income from the underlying portfolio. The net rental income grew by 4.5% per year. And the main driver for that was seen within the industrial sector and assets within the portfolio. We will look at a couple of case studies, but as a headline, we had lease events with 2 of our top 10 occupiers and new rental evidence had our largest asset in Radlett, and we'll come on to talk about those in a little bit more detail. Overall, we're reporting a loss of the year of GBP 4.8 million, which is the result of the downward valuation movements during the year. At a headline level, valuations decreased by 3% during the year, which compared to a negative 5.5% MSCI, so ahead of the MSCI overall benchmark. We've paid dividends in the year of GBP 19.1 million, and our dividend cover for the year was 114%. Moving on to our debt book. As I mentioned on the first slide, there's a significant amount of value within Picton and within its debt book. Firstly, we have a conservative level of gearing. It was 28% at the end of March and has since reduced further from that post year-end, and we'll comment on the reasons for that later in the presentation. We have looked in fixed rate debt and a weighted average interest cost of 3.9%, which is clearly well below the current market interest rates. And in addition to that, we have long-dated debt with maturities in excess of 7 years. So no refinancing risks or exposure to volatility in interest rates looking into the medium term. The table at the bottom just captures the key lenders within the portfolio. Certainly, Michael and I have met with those lenders recently. They continue to be supportive with Picton and of the assets, and we've remained covenant compliance, and met all the scheduled debt repayments. So moving on to a slide looking forward at the drivers for earnings growth if we step back and think about Picton's drivers for earnings. I talked about the capital structure and the debt and that's fixed. Also in the appendix, we've got some detail on our cost base. We are internally managed, which means our cost base isn't exposed to variations or movements in the net asset values or the gross asset values. So we have good visibility on our cost base because of that internally managed structure and also the fixed rate of debt. So really, when we're looking about earnings going forward, we're looking at where we see the net rental income growth coming from, and the chart on this slide just sets out the key components for the growth in unlocking that 29% reversion. So moving from GBP 44.7 million to GBP 57.6 million. And the key components of those, and again, Michael will come on to talk about some of the assets in a little bit more detail, unlocking the potential within the office repositioning. So the disposal of Angel Gate, which completed in April and also the sale of LongCross, which is exchanged, and we're hoping to complete within the financial year. If we look at the reversion within our vacancy, we've already had a significant amount of progress faced year-end. We've got GBP [ 0.08 ] million of the GBP 3.7 million highlighted here, already completed in terms of reducing that vacancy. And then finally, in terms of reversion, the final GBP 3.7 million on the chart, the majority of that reversion is coming through from our industrial assets. So when we talked about the annual results for the previous year, and we've seen some of that reversion coming through in the industrial assets and driving net rental income and driving earning, we expect that to continue through unlocking that reversion as the lease events come to pass over a period of time. And as a reminder, a [ vault ] is around about 4 years. So that reversion is going to be unlocked as those lease events come to pass.

Thank you, Saira. So I thought what I would just quickly do is highlight some of the actual property level activity within the portfolio over the last 12 months. Saira has alluded to the out-performance at the property level, in part driven by our asset allocation and also the rental growth that we've seen and increase in income at a property level. And this is despite, as we look back over the 12 months, it feels a long time ago now, but it was quite a difficult market, a very recessionary quite cautious approach. And the fact that we have with occupiers being able to grow those rents, I think, is no mean feat. And people that know us already, Picton, we very much talk about being occupier focused, engaging with our occupiers, providing space that occupiers want. And I think we put in a quote there from one of the new occupiers to our portfolio last year. And just it really embodies the proactive, collaborative approach that we have with our occupiers, which, to my mind, helps with occupier retention, and it helps with, I think, some of the successes that we've achieved this year. I won't go through this -- everything on this slide, but actually, despite a more subdued market letting activity, lease regear, rent review activity, all of which you will see is ahead of estimates in March, the preceding year. So very much supporting that growth that I alluded to earlier. We saw rent collection over 99%. So again, a really resilient occupier market, it's been different in the capital markets, the investment markets, but the occupational markets have been remarkably resilient. And Saira alluded to the fact that we've been investing into the portfolio. It's something that we have done from the start. I think it's really important that your portfolio remains relevant. We use the expression future proofing, but I think actually ensuring that your assets meet current occupational demand is key. And actually, we've put some examples across each of the sectors where we've had activity, be it lease renewals, rent reviews and the vast majority of those have been ahead of ERV, which again, I think, is really encouraging. In the industrial portfolio, this is now nearly 60% of our entire business. We saw quite a significant increase in passing rent. This is driven by the highly reversionary nature of our portfolio, an uplift on pretty much every lease event that we were dealing with. We've put 2 examples there on 2 schemes we've got one in Grantham in the Midland, one in Harlow, which is Southeast U.K. And you can see the scale of some of those increases, circa 40% increases on rent reviews or lease regears. And I think that is just evidence of us capturing that reversion potential in the portfolio. And at the same time, we're clearly looking to extend leases as well, and that improves the overall quality of income as opposed to just the quantum. We've touched on repositioning some of our office assets. It's very clear that the office sector has seen a more marked repricing than both industrial or retail in the last 24 months. There's a definite polarization in the marketplace between assets that are no longer fit for purpose and need to be repositioned and those that are of higher quality and are maintaining occupancy. So we very much believe that we've got a good quality office portfolio. We've got occupancy overall of 85%. 86% of our office assets are rated A to C from an EPC perspective, but we do have assets that we think we can unlock higher value for by looking at alternative uses. And predominantly, those uses are what I'm going to call living uses. So be that straightforward residential, be it student accommodation, hotel is another one depending on location. But that's what we're doing on very specific assets and assets that either are void now or might have a future for void. But it's not something that we're looking to do across the whole portfolio because, as I say, good quality assets with high occupancy. The other thing to point out is that office assets generally have a lower valuation and rating per square foot than retail. And we saw quite significant value destruction in the retail sector over the last decade. As pricing has reduced from a very high rate per square foot to where it is now, offices come off a much, much lower base and are easier to repurpose. And that's why we've started to see, we think, a floor in some of the market pricing as these residual values are hit. In terms of future-proofing our portfolio, it's very much around meeting occupational needs, what occupiers want. Occupiers on the whole, want greener, more efficient buildings, and that's something that we are very focused on and clearly timing that capital expenditure with lease events. So making sure when or if buildings come back, that's when we upgrade them to give us the best possible chance of leasing and indeed attracting enhanced rentals. We're also doing things like ensuring we've got green lease clauses with our occupiers. And it's also about running buildings efficiently as well because you can have an efficient building. But if it's not run efficiently, it's less impactful. So engagement with occupiers is key. And again, a couple of examples here, one on an office asset where we've restructured and extended the lease with an occupier. But as part of that transaction, we've put solar on the roof. So again, created an EPC A rated building through just really some quite simple but yet pragmatic measures and in Warrington, again, when the unit came back, we've removed the gas. We've installed solar and that enhances that building and enabled a reletting very quickly after that project. And so what Saira and I have spoken about to date has really been a review of last year. But I think the next element of the plantation is a little bit more real time only to mention that after our Board meeting today, we'll be approving the next NAV trading update and dividend. But we thought it would be helpful to just give a bit more real-time information about what's happening in the market. So I mean we have seen changes. The market is always changing, but I think the headlines are -- clearly, interest rates have affected the property market. But there is a, in my view, a sense of optimism returning in 2024, that maybe the bulk of the repricing that we've seen over the last year to 18 months has worked through. As hopefully, I demonstrated in the previous slide, occupier markets have been remarkably resilient. And I think a key data point actually is the fact that the repricing of property in the last couple of years has led in many instances to the sort of market value of property being well below replacement cost. And that clearly has an impact in terms of redevelopment and new supply that, that is likely to be much more constrained in the coming years because of the economics behind it. And I think we are likely to see certainly for better quality assets, better rental growth coming through as a result of that constrained supply. This is very much the case in the industrial sector and has been for some time. I think in the office sector, as I mentioned on that earlier slide, there is a very clear differential between buildings that we would consider fit for purpose going forward and a space that is becoming more obsolete and clearly, the trick there is to be in those assets that are future-proofed. And there's definitely going to be supply coming out of that sector as assets are repositioned. And then in Retail & Leisure, this has seen a massive pricing correction in recent years, but I do think the evidence we're seeing is that, [ that ] is broadly stabilizing. Now there's clearly challenges out there. I'm sure you've all heard about the demise of Carpetright. I think Ted Baker is another retailer that's rumored to be in trouble at the minute. So it does depend on your occupier lineup, but at a more macro level, we think rents have stabilized here, which makes that sector more interesting than it has been for some period of time. The charts here really are just looking at this year, they're MSCI numbers, but they just give a flavor of this resilience in the occupational markets. And if you look at the chart, you can see the gray bars are all property, the diamonds are the different sectors we invest in but pretty much across all sectors this year, we've seen positive rental growth. It's not been strong, but nevertheless, positive rental growth across all sectors in the 6 months. And I think that improved picture that we see here does reflect that optimism. But not only I mentioned about in the real estate sector, but actually with some of our occupiers as well and in the businesses there in. The capital markets have been a little bit more challenging. Undoubtedly, liquidity is less than it has been, although probably improving this year relative to last. We've seen the chart again shows you the stabilization in retail and industrial values. That's the top of the chart. Offices still showing some weakness on capital values, but even that is trending to a baseline. And I think actually, if valued correctly, we're starting to see some stability in that sector as well. Clearly, very dependent upon occupational terms and asset quality. But I think from our perspective, we sense that if we're not near the bottom of that repricing, we're very, very close. So the final couple of slides are just to summarize both last year and again, without giving anything away ahead of tomorrow, but just provide some real-time update of what's been happening since we released our results. Hopefully, we've demonstrated the reversion in the portfolio, our ability to unlock that reversion and create value through the asset management that we've been doing across the portfolio. The business is in a good place, our long-term debt structure is hugely valuable in the current climate and gives us real confidence about the future and in terms of our earnings because there's no disruption through any refinancing. We think the ability of Picton to evolve and adapt as market conditions in the real estate sector change is coming to the fore, and some of the work that we've been doing in the office sector, I think will start to show fruits in this next financial year. We're widely aware though that the listed real estate market has certainly been quite challenged over the last 12 months or so. Discounts remain more generally prevalent in the listed space. But we do sense that, that is changing, I think, in terms of our own road show experience that Saira and I have been doing in the weeks and months following our release of our results has definitely been well received. Certainly, we've seen some good traction with the share price and our discount narrowing. But equally, as a business, we recognize that we need to remain relevant to shareholders. Scale is important, and particularly with our internalized structure, if we can grow and in the right way, that should deliver additional earnings growth for shareholders. And then finally, just in terms of what's been happening since March. Well, actually, we've managed to improve occupancy across the portfolio. In part, that's been driven by leasing activity but also the sale of one of our void office assets ahead of the March valuation. We've got planning permission at another one of our office assets that we're looking to reposition and on Cardiff, where we had exchanged contracts in the last financial year, the buyer has in the last few weeks formally submitted planning for their student scheme there. So good progress on the key alternative use to repositioning that's been happening. In terms of our debt, Saira mentioned the numbers at March. But looking at it on a pro forma basis, having repaid the RCF, the LTV has dropped to 25%. And also, all of our debt is fully fixed, no floating rate debt in the business. Good leasing activity, rents ahead of ERV. We announced recently a number of transactions, including offices that we've leased [Technical Difficulty] an occupier that's expanding lettings in Warrington and Bracknell, again, supportive of valuations and/or ERV growth. And then finally, in April, but effective in May of this year, we announced a dividend increase. And I think that's on the back of the work that was done last year, the good level of cover that we showed, but also some of the progress that we've made in the first quarter of this year. And obviously, we've mentioned previously about the desire to run the business with a fully covered dividend. So lots, I think, of good data points there and progress in the portfolio that certainly gives us confidence but hopefully should be comforting to investors also. So I think I'm going to end there and happy to take questions.

Great. Thank you, Michael, and thank you, Saira. We have a number of [ pieces of ] received questions and the questions have been coming in live. I can already see there's quite a lot of [indiscernible] of the question. So [ I'll ] specifically read out the exact words of your question, please allow me just to -- bear with me when I [indiscernible] some of them together, because we do want to get you all of the questions. We've had a number of questions coming together on consolidation generally in the respect of mergers and acquisitions and just asking what our plans are. I mean maybe if I start and just pass to Michael, we do believe that moving Picton in a way that meets with our objective that's growing at safely is in the interest of shareholders for reasons of [Technical Difficulty] than this, but did all the benefits to scale would bring us? And with our advisers, we do continue to actively look at opportunities. So it does form quite a key part of the Board discussions. And Michael, we did talk about post road show and some of the reactions. But if you want to add anything to that, generally, we've had a number of questions coming together?

Yes. And I think probably the only thing I would add is that with Saira on board now, we're looking at options closely. We had conversations with a company last year that didn't progress, which was a shame, but actually, that's fine. Within the underlying business, we've got growth and growth potential and certainly, the interactions we've had with shareholders remain supportive of our approach, which is about growing in a prudent way that's good for shareholders as opposed to just simply having scale. And I think it's having that discipline, but also that intent.

Excellent. Thank you very much. And similarly, we've had 3 or 4 questions all around the office thing. I do think that you answered quite a lot of that in the presentation. So we've got a question about pursuing alternative uses, which I think you've covered very well. But we've also been asking in terms of being asked the percentage of uplift expected, when we convert offices into living spaces and will kind of do any indication of what kind of uplift that might bring us in general?

So I think there's a number of factors there. And if you think about the way the portfolio is valued quarterly, as we progress [ through ] these initiatives, the independent valuers should be reflecting the progress or in the likelihood of those consents. So I think the real example that I can give at the minute because it happened is our asset that we sold in Islington at the start of the year. For memory, because it was in the presentation, it said it was a 2% premium to the March value. It was a bigger premium to the December value, I think it might have been in the order of 7% or 8%. But I think the point being is, if we have not pursued that alternative use strategy there, I've not been able to unlock that. I think we may well have seen a write-down in value of that asset in the order of 20%. So it's not just about the premium to value. It's about protecting value and ensuring that your assets that you hold aren't subject to write-downs because that's what's been happening in the market. And these -- the exact same point is true in Cardiff. We've struck in a transaction that very much protects the downside position, and that particular transaction has an overage provision linked to the number of student bedrooms that the purchase are obtained. And so each asset is different, but I think those numbers give a range.

Great. Thank you, Michael. And just to close on the office questions, which we quite a few on -- where there's a question in terms of, is there any indication of what proportion of offices we'd be happy to have within our portfolio or a target we'd like to get to?

Yes. So I mean, I think the headline is that probably as we approach this financial year-end, our office exposure will probably be low 20s, taking it down probably by 1/3. The majority of that reduction will come because we will be allocating out of that sector as we sell for these enhanced values as we get through alternative uses. We don't want to reduce office exposure entirely. We think it's the wrong time to actually be exiting some of these assets because the market is quite dislocated at the minute. And hopefully, I demonstrated, but we have a lot of good quality offices in good locations in the portfolio that are well leased and have the occupiers. And as a result of that, both from a yield perspective and a capital value perspective, certainly in relation to their cost of construction, they look very good value, and we don't have any desire to sell those assets at this point in the cycle.

Very clear. Thank you, Michael. And finally had some questions on RCFs and the like. And maybe I'll just start with what impact of the RCF maturity has on the business?

So just by way of context, so we do have an RCF facility of GBP 50 million. It is now currently undrawn, as Michael said, following the sale of Angel Gate, we repaid that in its entirety. So we're not reliant on that RCF in terms of any working capital going forward, and we do have surplus cash within the business to fund the capital projects that we have outlined in the short term. I think having said that, we've spoken to [indiscernible], he remained supportive of us and we do see value in the RCF in terms of the flexibility that it provides for CapEx and other capital projects. So it's something that we're really working on and working through to define the quantum and that refinancing next year. But in terms of the direct impact, I think it's fair to say that we'll have very little impact as we're not expecting to draw it, and it is at current market rates.

Thanks, Saira. And then a question that's coming during the presentation, when do your interest rate hedges mature?

So we actually don't have separate interest rate hedges per se. We have fixed rate loans with Canada Life and Aviva and the maturities of those are July '31 and July '32. So those are effectively when those loans will be repayable and that fixed rate will end, so over 7 years.

Okay. Thank you, Saira. And finally, on debt, just for clarification, the questions have come in. Did you suggest that it's likely to be reduced in the picture? Why is that at the cost of debt of 3.9% would seem to be healthy?

So point of reducing debt is referencing the position as at the end of March. So between the end of March and as of today, we have reduced the level of debt, which has been the repayment of the RCF. So we're now in a position where we've repaid our fixed or floating rate expensive debt that was costing just under 7%. There are no plans to further actively repay any of that fixed rate debt. There are some amortization payments, which are scheduled on the [ fixed term ] loans. But there is no plan to repay that -- those fixed term loans, as you referenced, investor rightly points out, those are at attractive rates, which is why we intend to keep those.

Indeed, thanks for the clarification. Michael, on the kind of opportunity side of falling on from the scale question. We've had a question come in during the presentation. Could you tell us about the extent of any institutional and open-ended funds or perhaps property awaiting sale, what opportunities might this provides to Picton?

So there is still a market that I think has limited or reduced liquidity. And there are definitely opportunities. I suppose it's a little frustrating for Picton, that we don't have a war chest at the minute because I think it will be something that we could use effectively. We've certainly seen some funds looking to wind up and go into runoff and undoubtedly, there are still generally a theme of redemptions from open-ended vehicles. And we're also seeing, I think, it's fair to say some disposals that are being driven by their asset -- sort of lender need, i.e., companies that perhaps have -- even if they're not over leveraged in the previous cycle, but just the changing cost of debt has meant that it's difficult to refinance, so they're looking to sell. So I think the headline is that there are opportunities there. We have been quite prudent, I think, in the -- certainly this year because we wanted to repay debt, reduce LTV, really wait to see for a bit more clarity in the marketplace around stabilization in values. It now does appear that we're through the worst of the interest rate rises. In fact, I think there is an expectation that interest rates will be lower at the end of the year as they are today. That will make using the RCF more attractive and something that we will proactively look at as we move through the year. And certainly, as I say, investors that we've spoken to would like us to be front foot and take advantage of some of the opportunities in the marketplace. And that's what we'll do.

And the other -- I guess with the other side of that point, we've had a question kind of during the presentation in terms of property that we might have for sale in the U.K markets and if so, could we give details on any of them?

Yes. I mean I can't give specifics, but I think that the key focus of the -- there is -- a Picton Disposal Program is entirely at the minute skewed to low-yielding assets in the office sector that we are repositioning for higher-value alternative use. So that's clearly going to generate receipts it already has, but there are more planned. And it's that capital that we can look to redeploy into assets that we think have base income characteristics, but also upside using the skills that we have in terms of asset management and value creation.

A couple of questions in terms of coming around to the narrowing of the discount in our plans. And maybe just from the Board perspective, we continually evaluate options to create value as Michael and Saira said, we do think there's more to come in unlocking the reversion, to drive income and earnings goals, but any other thoughts on that, Michael?

Yes. I mean I mean clearly, discounts have been prevalent in the real estate sector and much has been spoken about sort of London and the equity markets. And Picton has been caught up in that. But equally, I think there's been -- or maybe 12 months ago, there was concern about perhaps some of our office assets and indeed whether the Picton dividend really was high enough to reflect base rates and alternatives elsewhere. I think a combination of stabilization in the market the fact that we've been able to demonstrate recycling of capital of those offices, repayment of debt, reduction in costs, increase in dividend. There's lots of milestones, I think, that are reassuring. And we are also very mindful of the fact that we need to be promoting Picton and promoting the real estate sector actually and at this particular point in the cycle, some of the advantages that it has. And I think the traction that we've had in recent months, not that we are complacent in any shape or form, but I think it is encouraging. And hopefully, we'll continue that trend. As I said, we've certainly seen quite a marked narrowing of our discount in the last sort of 6 to 8 weeks. And I can't believe it's one thing, but we have to work hard on multiple fronts to sort of get the rating back to where we'd like it to be.

We do. And that's very much a key focus for the Board in terms of our obligations and the interest of our existing shareholders and the excellent work that the team are doing on the road shows and the interest from a widening investor base and new investors, which I think can only be keep good for us as we move forward. So Michael, do you want to say something there?

No. No.

No. I think we've really covered all of the topics in terms of all the presented questions that I've been picking off and we have covered all of the live questions that have come in June presentation. So I'll pause just to see if anyone wants to do any last-minute typing? No. Okay.

Perfect. Lena, Michael and Saira, thank you very much for answering those questions that came from investors. Of course, the company can review all the questions submitted today and we will published those responses on the Investor Meet company platform. But just before redirecting investors to provide with their feedback, which is particularly important to the company, Michael, I was just wondering if I could ask you for a few closing comments.

Well, firstly, just to thank everyone for their time and listening today and the questions submitted. It's really great to engage with shareholders and get their thoughts and feedback and that comes through in the types of questions that are asked. As Lena mentioned at the start, we will be providing a trading update to the market tomorrow. So that's real-time news if that makes sense. So we look forward to doing that. And yes, we thank you all, and have a good day, everyone.

Thank you very much. Thank you.

Thank you.

Perfect. Thank you for updating investors today. Could I please ask investors not to close the session as you may be automatically redirected to provide your feedback in order the management team can better understand your views and expectations. This won't take a few moments to complete and I am sure will be greatly valued by the company. On behalf of the management team of Picton Property Income, we'd like to thank you for attending today's presentation, and good morning to you all.