Financial Statements
Notes to the consolidated financial statements continued for the year ended 31 March 2022 22. Obligations under leases
The Group has entered into a number of head leases in relation to its investment properties. These leases are for fixed terms and subject to regular rent reviews. They contain no material provisions for contingent rents, renewal or purchase options nor any restrictions outside of the normal lease terms. Lease liabilities in respect of rents on leasehold properties were payable as follows:
2022 £000
2021 £000
Future minimum payments due: Within one year In the second to fifth years inclusive
185 740
116 466
9,083
After five years
7,150 7,732 (5,918) 1,814
10,008
(7,301) 2,707
Less: finance charges allocated to future periods Present value of minimum lease payments
The present value of minimum lease payments is analysed as follows:
2022 £000
2021 £000
Current Within one year
114 114
107 107
Non-current In the second to fifth years inclusive
410 2,183 2,593 2,707
379 1,328 1,707 1,814
After five years
Operating leases where the Group is lessor The Group leases its investment properties under commercial property leases which are held as operating leases. At the reporting date, the Group’s future income based on the unexpired lease length was as follows (based on annual rentals):
2022 £000
2021 £000
41,928 39,244 35,416 29,972 24,748 99,788
Within one year One to two years Two to three years Three to four years Four to five years After five years
37,744 33,954 32,008 27,937 23,235
91,294 271,096 246,172
These properties are measured under the fair value model as the properties are held to earn rentals. Commercial property leases typically have lease terms between five and ten years and include clauses to enable periodic upward revision of the rental charge according to prevailing market conditions. Some leases contain options to break before the end of the lease term. 23. Net asset value The net asset value per share calculation uses the number of shares in issue at the year-end and excludes the actual number of shares held by the Employee Benefit Trust at the year-end; see Note 20.
Picton Property Income Limited Annual Report 2022
134
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