Picton Property Income Limited Annual Report 2021

Business Overview 2021 Highlights Highlights

Positive results underlining the resilience of the business and our continued long-term track record of outperformance.

Resilient financial performance ӱ Profit after tax of £33.8 million, an increase of over 50% on the prior year results ӱ Net assets of £528 million, or 97p per share, an increase of 3.7% ӱ Earnings per share of 6.2p ӱ Total return of 6.6% ӱ Received 92% of rental income over the financial year, with a further 1% deferred ӱ Combined reduction of 6% in property, operating and finance costs over the year ӱ Total dividends paid of £15.0 million, with dividend cover of 134% ӱ Loan to value ratio reduced to 21% with significant headroom against loan covenants ӱ New £50 million revolving credit facility completed Outperforming property portfolio ӱ Total property return of 7.3%, outperforming MSCI UK Quarterly Property Index of 1.2% ӱ Upper quartile outperformance against MSCI over one, three, five and ten years, and since inception ӱ Well-positioned portfolio comprising: Industrial 53%, Office 36%, Retail and Leisure 11% ӱ Like-for-like valuation increase of 3.2% ӱ Like-for-like increase in passing rent of 1.9% ӱ Like-for-like estimated rental value increase of 1.1% ӱ One retail asset disposal for £4.0 million, 30% ahead of March 2020 valuation

Improving occupancy through asset management ӱ Increased occupancy to 91% ӱ Occupier retention of 88% ӱ 90 asset management transactions completed including: – 17 rent reviews, 7% ahead of ERV – 30 lease renewals or regears, 10% ahead of ERV – 25 lettings or agreements to lease, 3% ahead of ERV ӱ £5 million invested into asset refurbishment and repositioning projects Supporting our stakeholders ӱ Provided assistance to over 90 occupiers during the Covid-19 pandemic ӱ Increased dividends twice during the year, with payments almost back to pre-pandemic levels ӱ Reduction in property running costs to assist our occupiers ӱ Improvement in annual GRESB score achieving two Green star status ӱ Pathway to net zero carbon to be in place by March 2022

See Financial Review for more highlights on pages 44–46

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