Picton Property Income Limited Annual Report 2022

Strategic Report

Financial Statements

Additional Information

Governance

As discussed in the Committee Chair’s statement on pages 91 to 95, the Committee considered the formulaic bonus outcome in the context of the Group’s overall performance for the year and concluded that it was satisfied that the formulaic bonus outcome was a fair reflection of overall Group performance during the year. The Committee was also satisfied that the above performance was achieved within an acceptable risk profile. Subject to the estimated total return component noted above, the overall annual bonus outcome for the Executive Directors is, therefore, as follows: Financial metrics (out of maximum 60%) Corporate objectives (out of maximum 40%) Overall bonus % of maximum Bonus % of salary

Total bonus £

Michael Morris Andrew Dewhirst

27.8 27.8

35.8 35.8

63.6 63.6

104.9 301,500

104.9 205,000 In accordance with the Directors’ Remuneration Policy the Committee has determined that 50% of the annual bonuses awarded to the Executive Directors should be deferred and payable in shares in two years’ time. Dividend equivalents will accrue on the shares and these will be paid in cash when the awards vest. Long-term Incentive Plan The LTIP awards granted on 19 June 2019 were subject to performance conditions for the three years ended 31 March 2022. The performance conditions and the actual performance for these were as follows:

Awarded (% of maximum)

Weighting (% of award)

Performance condition

Basis of calculation

Range

Actual 18.4%

Total shareholder return versus comparator group

Less than median – 0% Equal to median – 25% Equal to upper quartile – 100% Less than median – 0% Equal to median – 25% Equal to upper quartile – 100% Less than 3% per annum – 0% Equal to 3% per annum – 25% Equal or greater than 9% per annum – 100%

Median – 5.0% Upper quartile – 31.8%

33.3% 62.5%

Total property return versus MSCI Index

Median – 7.7% Upper quartile – 9.7%

12.0% (above upper quartile)

33.3% 100%

Growth in EPRA EPS

3% – 4.65p 9% – 5.51p

3.88p

33.3% 0%

The Committee was satisfied that the above performance was achieved within an acceptable risk profile. As discussed in the Committee Chair’s statement on pages 91 to 95, the Committee considered the formulaic LTIP outcome in the context of the Group’s overall performance over the performance period and concluded that it was satisfied the formulaic outcome was a fair reflection of overall Group performance during the period. Based on the vesting percentage above, the shares awarded and their estimated values, using an average share price of 100.06 pence for the quarter ended 31 March 2022, are:

Maximum number of shares at grant

Estimated

Number of shares vesting

Number of lapsed shares

value 1,2 £

Director

Michael Morris Andrew Dewhirst

328,153 177,760 150,393 194,980

214,218 116,041

98,177 127,280

1. The estimated value includes dividend equivalent awards which will be made in relation to vested LTIP awards at the point of vesting. The value of the dividend equivalent awards is £17,109 (Michael Morris) and £11,169 (Andrew Dewhirst). 2. £8,586 (Michael Morris) and £5,605 (Andrew Dewhirst) of this value relates to share price growth since the date of grant. The following awards in the Long-term Incentive Plan were granted to the Executive Directors on 22 June 2021:

Face value per share (£)

Award face value (£)

Number of shares 403,339 241,358

Basis (% of salary)

Threshold vesting

Performance period

Michael Morris Andrew Dewhirst

125% 0.8910 359,375 1 April 2021 to 31 March 2024 110% 0.8910 215,050 1 April 2021 to 31 March 2024

25% 25%

 Picton Property Income Limited  Annual Report 2022

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