Picton Property Income Limited Annual Report 2022

Strategic Report

Financial Statements

Additional Information

Governance

Total property return (%)

Loan to value ratio (%)

C

E

2022 2021 2020

2022 2021 2020

00.0 24.3

21.2

7.3

20.9

5.3

21.7

Why we use this indicator The total property return is the combined income and capital return from our property portfolio for the year, as calculated by MSCI. We use this indicator because it shows the success of the portfolio strategy without the impact of gearing and corporate costs. Our total property return relative to the MSCI UK Quarterly Property Index is a performance condition for both the annual bonus and the Long-term Incentive Plan.

Why we use this indicator The loan to value ratio is total Group borrowings, net of cash, as a percentage of the total portfolio value. This is a recognised measure of the Company’s level of borrowings and is a measure of financing risk. See the Supplementary Disclosures section for further details.

Our performance in 2022 We have outperformed the MSCI UK Quarterly Property Index for the ninth consecutive year, delivering a return of 24.3% compared to the Index return of 19.6% for the year. We have also delivered upper quartile outperformance against MSCI over three, five and ten years, and since inception.

Our performance in 2022 The loan to value ratio has marginally increased this year with the additional borrowings drawn during the year offset by the increase in the portfolio value.

3

1

3

1

2

2

Property income return (%)

Cost ratio (%)

D

F

2022 2021 2020

2022 2021 2020

4.5

1.0 1.0

4.7

4.8

1.1

Why we use this indicator The property income return, as calculated by MSCI, is the income return of the portfolio. Income is an important component of total return and our portfolio is biased towards income generation.

Why we use this indicator The cost ratio, recurring administration expenses as a proportion of the average net asset value, shows how efficiently the business is being run, and the extent to which economies of scale are being achieved. See the Supplementary Disclosures section for further details.

Our performance in 2022 The income return for the year of 4.5% was ahead of the MSCI UK Quarterly Property Index of 4.2%, and we have also outperformed over one, three, five and ten years, and since inception.

Our performance in 2022 The cost ratio has been maintained at 1.0% this year.

3

1

3

1

2

2

 Picton Property Income Limited  Annual Report 2022

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