Picton Property Income Limited Annual Report 2021

Strategic Report Portfolio Review Proactivemanagement

Through engaging proactively with our occupiers, we have had success inmanaging the portfolio despite themany challenges caused by the Covid-19 pandemic.

Key facts 46 Portfolio assets

We ended the year with like-for-like increases in the portfolio valuation, passing rent and estimated rental value (ERV). It has been another busy year in terms of portfolio transactions, despite the national lockdowns, with the number completed close to that of the previous year. We have continued to invest in the portfolio, repositioning assets and enhancing the quality and lettability of space, resulting in an increase in occupancy over the period to 91%, up from 89% in the prior year. Our relationships with our occupiers have been fundamental during the year, and we have been able to help where required.

We are guided by our Picton Promise of Action, Community, Technology, Support and Sustainability, all key commitments which have assisted our occupiers during the pandemic. Performance Our portfolio now comprises 46 assets, with around 350 occupiers, and is valued at £682 million with a net initial yield of 4.8% and a reversionary yield of 6.3%. Our asset allocation, with 53% in industrial, 36% in office and 11% in retail and leisure, combined with an investment disposal and transactional activity, has enabled us to deliver upper quartile performance and outperform the MSCI UK Quarterly Property Index over the year. Overall, the like-for-like valuation was up 3.2%, with the industrial sector up 13%, offices declining by -5% and retail and leisure declining by -9%. This compares with the MSCI UK Quarterly Property Index recording capital value declines of -3.2% over the period. The overall portfolio passing rent is £36.5 million, an increase from the prior year of 2% on a like-for-like basis. This was a result of the industrial portfolio rents growing by 6%, office rents growing by 2%, being offset by retail and leisure rents decreasing by -7%. Regional offices saw rental growth of 3%, offset by declines in London of -2%, which was more severely affected by the working from home guidance and a reluctance to travel on public transport.

91% Occupancy £37m Passing rent £45m Estimated rental value

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