Audit, Risks and Internal Controls continued
Terms of reference The Committee shall review the quarterly valuation reports produced by the independent valuers before their submission to the Board, looking in particular at: ‒ Significant adjustments from previous quarters; ‒ Individual property valuations; ‒ Commentary from management; ‒ Significant issues that should be raised with management; ‒ Material and unexplained movements in the Company’s net asset value; ‒ Compliance with applicable standards and guidelines; ‒ Reviewing findings or recommendations of the valuers; and ‒ The appointment, remuneration and removal of the Company’s valuers, making such recommendations to the Board as appropriate.
The Committee was satisfied with the valuation process throughout the year. Richard Jones Chair of the Property Valuation Committee
External valuer CBRE Limited are appointed as the external valuer of the Group and they carry out a valuation of the Group’s property assets each quarter, the results of which are incorporated into the Group’s half-year and annual financial statements, and the quarterly net asset statements. The valuations are done in accordance with the Royal Institution of Chartered Surveyors Red Book valuation standards. The Committee reviewed the performance of the valuer and recommended that the appointment be continued for a further 12 months. The Committee is aware of the recent RICS Review of Real Estate Investment Valuations and the proposed recommendations. We have responded to the consultation and will be monitoring the results. Richard Jones Chair of the Property Valuation Committee 25 May 2022
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Activity The Committee met four times during the year ended 31 March 2022. Members of the Property Valuation Committee, together with management, met with the independent valuer each quarter to review the valuations and considered the following matters: ‒ Property market conditions and trends; ‒ Movements compared to previous quarters; ‒ Yields on properties within the portfolio; ‒ Letting activity and vacant properties; ‒ Covenant strength and lease lengths; ‒ Estimated rental values; and ‒ Comparable market evidence. The Committee was satisfied with the valuation process throughout the year.
Picton Property Income Limited Annual Report 2022
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