Governance
Financial Statements
Additional Information
Strategic Report
We consider that industry standard measures, such as those calculated by MSCI, are appropriate to use alongside certain EPRA measures and others that are relevant to us. In this regard, we consider that the EPRA net tangible asset per share (EPRA NTA), earnings per share and vacancy rate are the most appropriate measures to use in assessing our performance. Key performance indicators are also used to determine variable remuneration rewards for the Executive Directors and the rest of the Picton team. The indicators used are total return, total shareholder return, total property return and EPRA earnings per share. This is set out more fully in the Remuneration Report.
Our strategic priorities
Portfolio Performance
1
Operational Excellence
2
Acting Responsibly
3
For more information on EPRA Best Practices Recommendations see pages 158–161 Remuneration Link
Property income return (%) 5.1%
Loan to value ratio (%) 27.9%
Cost ratio (%) 1.2%
2024 2023 2022
2024 2023 2022
2024 2023 2022
5.1
27.9
1.2
4.4
26.7
1.0 1.0
4.5
21.2
Why we use this indicator The property income return, as calculated by MSCI, is the income return of the portfolio. Income is an important component of total return and our portfolio is biased towards income generation.
Why we use this indicator The loan to value ratio is total Group borrowings, net of cash, as a percentage of the total portfolio value. This is a recognised measure of the Company’s level of borrowings and is a measure of financing risk. See the Supplementary Disclosures section for further details.
Why we use this indicator The cost ratio, recurring administration expenses as a proportion of the average net asset value, shows how efficiently the business is being run, and the extent to which economies of scale are being achieved. See the Supplementary Disclosures section for further details.
1 2 3
1 2 3
1 2 3
Our performance in 2024 The income return for the year of 5.1% was ahead of the MSCI UK Quarterly Property Index of 4.7%, and we have also outperformed over three, five and ten years, and since launch in 2005.
Our performance in 2024 The loan to value ratio has increased slightly over the year with the adverse valuation movements. After the year-end, we have reduced this measure through the repayment of our revolving credit facility.
Our performance in 2024 The cost ratio has increased over the year, predominantly due to the reduction in net assets over the period, rising staff costs and additional resource.
Picton Property Income Limited / Annual Report 2024
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