Picton Property Income Limited Annual Report 2022

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

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