Picton Property Income Limited Annual Report 2021

Business Overview Chair’s Statement

These results show an improvement on the preceding year and underline the resilience of the business. LenaWilson CBE Chair

Inmy first year as Chair of Picton, I ampleased to be able to share with you the results for the 12-month period to 31 March 2021.

This has been an unprecedented year, with significant disruption to businesses, livelihoods, family and day-to-day life. During the year, we have remained focused on our three strategic pillars of Portfolio Performance, Operational Excellence and Acting Responsibly. As such, it gives me pleasure to be able to report that the business is in good shape, delivering a profit for the year of £34 million, an increase of over 50% compared with the preceding year. This has been achieved during a period where we have also provided significant assistance and support to help our occupiers cope with the disruption caused by the Covid-19 pandemic. This demonstrates the strength of our business model, our position entering the pandemic and our hands-on approach which has even led to growing occupancy over the year. Performance We delivered a total return of 6.6% over the year driven by portfolio growth in the latter half of the year. We have maintained our EPRA earnings despite being impacted by lower rent collection during the year, and have offset this with additional income generated through asset management transactions and a reduction in finance, property and operating costs.

At a property level, the portfolio has again outperformed the MSCI UK Quarterly Property Index continuing our track record of upper quartile outperformance which spans the period since inception. Our share price has been more volatile over the period but has responded well to the increases in dividend that we have announced through the year. The share price still does not fully reflect the net asset value of the business, but is currently in a better position than for many of our real estate peers. Property portfolio The outperformance at a property level has been driven by our exposure to the industrial sector, which now accounts for 53% of the portfolio. Also, our retail and leisure exposure has reduced, now accounting for only 11%. The combination of these two factors has been helpful alongside some key lettings and retaining many occupiers at or prior to lease-end. Broadly, rent collection for the year stands at 92% of income demanded, and we expect this to continue to rise, but have made appropriate provisions to reflect the likelihood of not making a full recovery.

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