Governance
Strategic Report
Financial Statements
Additional Information
Over the course of the year there have been significant market movements in the valuation which have been carefully considered and the Committee is confident that these were fully reflected by the external valuer. The Committee was satisfied with the valuation process throughout the year. 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 awaits the outcome of the consultation process following the RICS Review of Real Estate Investment Valuations and the proposed recommendations. Richard Jones Chair of the Property Valuation
Terms of reference The Committee shall review the quarterly valuation reports produced by the external 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.
Over the course of the year there have been significant market movements in the valuation. Richard Jones Chair of the Property Valuation Committee
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Activity The Committee met four times during the year ended 31 March 2023. Members of the Property Valuation Committee, together with management, met with the external 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.
Committee 24 May 2023
Picton Property Income Limited Annual Report 2023
105
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