Picton Property Income Limited Annual Report 2022

Strategic Report

Financial Statements

Additional Information

Governance

Our remuneration structure will be in accordance with the Policy for the year to 31 March 2023. Maria Bentley Chair of the Remuneration Committee

The remuneration arrangements provide alignment with shareholders through the use of financial metrics and corporate objectives. All members of the team participate in the annual bonus and LTIP, not just the Executive Directors. The Remuneration Policy and its components are clearly set out in this Report and the rules of the variable remuneration schemes are available to the whole team. We use standard performance metrics, which are also key performance indicators for the business, to determine awards. There are clear target and maximum levels for each metric. The Committee believes that the variable remuneration schemes in place are fair and proportionate and align the remuneration of the team with the Group’s performance. We are also satisfied that the remuneration structure does not encourage inappropriate risk-taking. The Committee does retain discretion over formulaic outcomes if it considers that these are not a fair reflection of the Group’s performance. Implementation of Policy Our remuneration structure will be in accordance with the Policy for the year to 31 March 2023. The bonus deferral policy for Executive Directors will continue, with 50% of any annual bonus award being deferred into Picton shares for a period of two years before vesting. The maximum annual bonus potential for 2022/23 will fall to 155% from 165% of base salary for the Executive Directors as outlined above. As in previous years the annual bonus will be determined 60% by financial metrics and 40% by corporate objectives. For 2022/23 we will continue to use two financial metrics, being total return, relative to a comparator group, and total property return, relative to the MSCI UK Quarterly Property Index.

The awards under the Long-term Incentive Plan will be at a level consistent with last year. For the awards to be made in June 2022 for the three-year period to 31 March 2025 we will retain the three performance measures used previously, being: ‒ Total shareholder return, compared to a comparator group ‒ Total property return, compared to the MSCI UK Quarterly Property Index ‒ Growth in EPRA earnings per share For the growth in EPRA earnings per share, we intend to use an absolute range of targets based on forecasts over the performance period. As a Committee, we are committed to ongoing dialogue with our shareholders and welcome any feedback regarding our remuneration practices. We look forward to receiving your continued support at the forthcoming Annual General Meeting. Maria Bentley Chair of the Remuneration Committee 25 May 2022

 Picton Property Income Limited  Annual Report 2022

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