Picton Property Income Limited Annual Report 2021

Financial Statements Notes to the consolidated financial statements continued for the year ended 31 March 2021

22. Obligations under leases continued Operating leaseswhere 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): 2021 £000

2020 £000

37,744 33,954 32,008 27,937 23,235

Within one year One to two years Two to three years Three to four years Four to five years After five years

38,296 35,665 32,356 30,342 26,322

91,294 111,711 246,172 274,692

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. 24. Financial instruments The Group’s financial instruments comprise cash and cash equivalents, accounts receivable, secured loans, obligations under head leases and accounts payable that arise from its operations. The Group does not have exposure to any derivative financial instruments. Apart from the secured loans, as disclosed in Note 18, the fair value of the financial assets and liabilities is not materially different from their carrying value in the financial statements. Categories of financial instruments

Held at fair value through profit or loss £000

Financial assets and liabilities at amortised cost £000

Total £000

31 March 2021

Note

Financial assets Debtors

– – –

5,109 5,109 23,358 23,358 28,467 28,467

15 16

Cash and cash equivalents

Financial liabilities Loans and borrowings

– 163,655 163,655 1,814 1,814 9,429 9,429 – 174,898 174,898 – –

18 22 17

Obligations under head leases Creditors and accruals

122

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