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Financial Statements / Continued
Notes to the consolidated financial statements / Continued
22. Obligations under leases The Group has entered into a number of head leases in relation to its investment properties. These leases are for fixed terms and subject to regular rent reviews. They contain no material provisions for contingent rents, renewal or purchase options nor any restrictions outside of the normal lease terms. Lease liabilities in respect of rents on leasehold properties were payable as follows:
2024 £000
2023 £000
Future minimum payments due: Within one year In the second to fifth years inclusive
185 740
185 740
8,712 9,637 (6,952)
After five years
8,898 9,823 (7,126) 2,697
Less: finance charges allocated to future periods Present value of minimum lease payments
2,685
The present value of minimum lease payments is analysed as follows:
2024 £000
2023 £000
Current Within one year
114 114
114 114
Non-current In the second to fifth years inclusive
409 2,162 2,571 2,685
405
After five years
2,178 2,583 2,697
Operating leases where the Group is lessor The Group leases its investment properties under commercial property leases which are held as operating leases. At the reporting date, the Group’s future income based on the unexpired lease length was as follows (based on annual rentals):
2024 £000
2023 £000
43,818 38,530 33,085 28,687 24,411 98,539 267,070
Within one year One to two years Two to three years Three to four years Four to five years After five years
43,824 39,548 34,806 29,506 25,454 105,675
278,813 These properties are measured under the fair value model as the properties are held to earn rentals. Commercial property leases typically have lease terms between five and ten years and include clauses to enable periodic upward revision of the rental charge according to prevailing market conditions. Some leases contain options to break before the end of the lease term. 23. Net asset value The net asset value per share calculation uses the number of shares in issue at the year-end and excludes the actual number of shares held by the Employee Benefit Trust at the year-end; see Note 20.
Picton Property Income Limited / Annual Report 2024 152
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