Picton Property Income Limited Annual Report 2021

Sustainable buildings

EPCmanagement Over the year we have reassessed 23 EPCs. The average newly assessed EPC rating improved to a C (reflecting an average score of 64), from the previous average rating of D (reflecting an average score of 90). Overall we have 387 EPC units across the portfolio, of which 92% are rated A-D. We have one unit with an F rated EPC where we are liaising with the occupier to undertake the necessary works to improve the rating. We continue to use lease events, common area works and EPC renewals to implement improvement works with the overall aim of continually improving our EPC score and ensuring compliance with MEES. Refurbishment checklist We have, in partnership with our building advisers, implemented an ESG-focused refurbishment checklist. This provides a set of guidelines to ensure our refurbishment process and refurbished buildings meet the appropriate environmental, social and governance standards based on the scope and type of refurbishment works being undertaken. Health and safety Our health and safety record remained strong over the year with no reported accidents or health and safety related incidents. Despite the restrictions caused by the pandemic we were 99% compliant in critical and secondary documentation.

In order to continue maintaining these high standards, we have created a new Health and Safety Committee to ensure that compliance and performance is measured appropriately for all our stakeholders; our employees, occupiers, contractors and other visitors to our buildings. We provided Covid-19 safe plans complying with the relevant health and safety regulations and guidance for all of our multi-let offices which ensured they remained safely open throughout the pandemic. Green leases We have continued to incorporate sustainability clauses into our leases during the year. We have identified three levels of green lease clauses - basic, intermediate and leader. At the start of this financial year we had 60 green leases in place. By 31 March 2021 this had risen to 105, so an increase of 75% over the year. Of this total, nearly half are at the highest leader level.

We are committed to monitoring and enhancing the environmental performance of our buildings and aim to ensure refurbishments are carried out to the highest sustainability standards. As we look to develop our pathway to net zero carbon over the course of next year, we will be further establishing the requirements at a portfolio level to enhance the risk and resilience of our buildings. What we have done this year ӱ Improved 20 EPC ratings ӱ Developed refurbishment checklist ӱ Provided Covid-19 compliant guidance for office re- occupation ӱ Created a new Health and Safety Committee ӱ Increased number of green leases by 75% What we will do next year ӱ Further improve the portfolio EPC ratings ӱ Maintain high level of health and safety compliance ӱ Consider further integration of wellbeing initiatives for our occupiers within our refurbishment checklist

See how this aligns with our strategic pillars on page 20–21

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