Picton Property Income Limited Annual Report 2023

Governance

Strategic Report

Financial Statements

Additional Information

As discussed in the Committee Chair’s statement on pages 106 to 109, the Committee considered the formulaic bonus outcome in the context of the Group’s overall performance for the year and concluded that it was satisfied that the formulaic bonus outcome was a fair reflection of overall Group performance during the year. The Committee was also satisfied that the above performance was achieved within an acceptable risk profile. Subject to the estimated total return component noted above, the overall annual bonus outcome for the Executive Directors is, therefore, as follows: Financial metrics (out of maximum 60%) Corporate objectives (out of maximum 40%) Overall bonus % of maximum Bonus % of salary

Total bonus £

Michael Morris Andrew Dewhirst

29.4 29.4

29.4 29.4

58.8 58.8

91.1 301,300 91.1 204,800

This year the Committee has determined that the proportion of the bonus deferred be increased to 60% of the annual bonuses awarded to the Executive Directors and payable in shares in two years’ time. Dividend equivalents will accrue on the shares and these will be paid in cash when the awards vest. Long-term Incentive Plan The LTIP awards granted on 29 June 2020 were subject to performance conditions for the three years ended 31 March 2023. The performance conditions and the actual performance for these were as follows:

Awarded (% of maximum)

Weighting (% of award)

Performance condition

Basis of calculation

Range

Actual 4.6%

Total shareholder return versus comparator group

Less than median – 0% Equal to median – 25% Equal to upper quartile – 100% Less than median – 0% Equal to median – 25% Equal to upper quartile – 100% Less than 3.75 pence per share for the year ended 31 March 2023 – 0% Equal to 3.75 pence per share for the year ended 31 March 2023 – 25% Equal or greater than 4.1 pence per share for the year ended 31 March 2023 – 100%

Median – 9.4% Upper quartile – 22.0%

33.3%

0%

Total property return versus MSCI Index

Median – 2.5% Upper quartile – 4.3%

6.8% (above upper quartile)

33.3% 100%

Growth in EPRA EPS

3.90p

33.3% 57.7%

The Committee was satisfied that the above performance was achieved within an acceptable risk profile. As discussed in the Committee Chair’s statement on pages 106 to 109, the Committee considered the formulaic LTIP outcome in the context of the Group’s overall performance over the performance period and concluded that it was satisfied the formulaic outcome was a fair reflection of overall Group performance during the period. Based on the vesting percentage above, the shares awarded and their estimated values, using an average share price of 74.41 pence for the quarter ended 31 March 2023, are:

Estimated

value 1,2 £

Maximum number of shares at grant

Number of shares vesting

Number of lapsed shares

Director

Michael Morris Andrew Dewhirst

309,275 185,070

162,524 97,254

146,751

136,980

87,816

81,970

1. The estimated value includes dividend equivalent awards which will be made in relation to vested LTIP awards at the point of vesting. The value of the dividend equivalent awards is £16,050 (Michael Morris) and £9,600 (Andrew Dewhirst). 2. £5,980 (Michael Morris) and £3,580 (Andrew Dewhirst) of this value relates to share price growth since the date of grant. The following awards in the Long-term Incentive Plan were granted to the Executive Directors on 17 June 2022:

Award face value (£) 413,281 247,308

Face value per share (£)

Threshold vesting

Basis (% of salary)

Performance period

Number of shares

Michael Morris Andrew Dewhirst

437,473 261,784

125% 0.9447 110% 0.9447

1 April 2022 to 31 March 2025 1 April 2022 to 31 March 2025

25% 25%

 Picton Property Income Limited  Annual Report 2023

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