Picton Property Income Limited Annual Report 2021

I just want to say a big thank you to Picton for your support with this unit. These are difficult and challenging times for all of us but we havemanaged to navigate through it in a short space of time. ProgrammeManager London Ambulance Service NHS Trust

We have on a case-by-case basis helped occupiers, especially small independent retailers, caterers, leisure occupiers and businesses severely affected by the lockdown restrictions, whereby we have agreed deferred rents, reduced rents and rent holidays dependent on circumstance. We have also been able to help our occupiers by providing upfront incentives to assist cash flow during the lockdown but improving the income profile in return. This type of transaction helps an occupier now and secures us a longer-term income stream, which creates value. At 50 Farringdon Road, London we removed an occupier’s 2022 break option securing £0.2 million per annum, which is subject to review until 2027 and in return provided the

occupier with a rent-free incentive. In another transaction, we surrendered a lease in return for a small premium and immediately re-let the suite to an existing occupier who required expansion space. The building remains fully leased. We are currently replacing the air-conditioning systemwhich will improve the EPC rating from a D to a B and reduce running costs. The replacement will also remove the natural gas supply from the building in line with our environmental targets. The restaurant at Queens House, Glasgow, was closed due to the lockdown restrictions. We let the space to the family-run business in 2006 and have a good working relationship with them.

By providing a rent-free holiday, the occupier was able to invest in a complete refurbishment of the 180-seat restaurant. We continue to work with our occupier as lockdown restrictions end and have put in place a stepped rent arrangement to assist the launch of their new concept. During the year we have upgraded our own office accommodation by relocating to Stanford Building and ending our lease in the City. This will improve the working environment for our employees and provide us with flexibility for growth going forward.

London Ambulance Service

Ralph & Finns Queen’s House, Glasgow

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