Governance
Financial Statements
Additional Information
Strategic Report
Portfolio activity
Our largest voids, excluding the two properties held for sale, which account for 31% of the void, are at: / Tower Wharf, Bristol – accounting for 13% of the total void. We have agreed terms to upsize an existing occupier, increasing their floorspace by 146%. We will be offering fully fitted suites in respect of the remaining space, which is to be refurbished later this year. / Charlotte Terrace, London – accounting for 13% of the total void. We are working through options for alternative uses and are awaiting planning permission. / Colchester Business Park, Colchester – accounting for 11% of the total void. The majority relates to an office building that recently became available. We are working up a refurbishment of the property, to include SwiftSpace suites, and already have occupational interest. Retention Over the year, total ERV at risk, due to lease expiries or break options, totalled £6.4 million. This excludes office buildings where we have intentionally kept space vacant for change of use. We retained 76% of total ERV at risk in the year to March 2024. Of the ERV that was not retained, a further 1% or £0.1 million was re-let to new occupiers during the year. In addition, a further £2.7 million of ERV was retained by either removing future breaks or extending future lease expiries ahead of the lease event. Longevity of income As at 31 March 2024, expressed as a percentage of contracted rent, the average length of leases to first termination was 4.2 years (2023: 4.6 years). This is summarised as follows: % 0 to 1 year 14.3 1 to 2 years 24.1 2 to 3 years 15.2 3 to 4 years 10.7 4 to 5 years 9.0 5 to 10 years 20.3 10 to 15 years 5.3 15 years or more 1.1 Total 100
Proactive management It has been an active year in respect of asset management transactions. We completed: / 26 lettings or agreements to lease, 3% ahead of ERV and securing additional contracted rent of £2.4 million / 31 lease renewals or regears, 2% ahead of ERV, securing an uplift in contracted rent of £0.4 million / 13 rent reviews, 2% ahead of ERV, securing an uplift in passing rent of £0.8 million / Five lease variations to remove occupier break options, securing £1.0 million of income / Seven lease surrenders to facilitate active management
Leasing and occupancy Occupancy has been stable during the year at 91%, rising to 93%, excluding the two office assets which are held for sale at the year-end. This compares to the MSCI UK Quarterly Property Index of 92% as at 31 March 2024. The total void ERV is £3.7 million, excluding the held for sale properties. Our industrial portfolio is 98% leased with demand remaining high across the country. We have only seven vacant industrial units, with two under offer and one being refurbished. The office portfolio occupancy is 80%, or 85%, excluding the properties held for sale. Seven of our office buildings are fully leased, two are being sold and we have suites available in the remaining eight buildings with four of these being over 25% vacant by ERV. In terms of retail and leisure, occupancy is 98%. The retail warehouse portfolio is fully leased, and we have two small vacant high street shops. At Regency Wharf, Birmingham, we have one remaining office suite to lease.
Picton Property Income Limited / Annual Report 2024
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