Picton Property Income Limited Annual Report 2023

Financial Statements/Continued

Notes to the consolidated financial statements/Continued

2. Significant accounting policies/ Continued Principles for the Consolidated Statement of Cash Flows

The Consolidated Statement of Cash Flows has been drawn up according to the indirect method, separating the cash flows from operating activities, investing activities and financing activities. The net result has been adjusted for amounts in the Consolidated Statement of Comprehensive Income and movements in the Consolidated Balance Sheet which have not resulted in cash income or expenditure in the related period. The cash amounts in the Consolidated Statement of Cash Flows include those assets that can be converted into cash without any restrictions and without any material risk of decreases in value as a result of the transaction. 3. Revenue from properties

2023 £000

2022 £000

42,964

Rents receivable (adjusted for lease incentives)

40,133

147 170 107

Surrender premiums Dilapidation receipts

59 21

Other income

118

8,428

Service charge income

6,212

51,816

46,543

Rents receivable have been adjusted for lease incentives recognised of £1.2 million (2022: £2.8 million). 4. Property expenses

2023 £000

2022 £000

3,491 3,647 8,428

Property operating costs Property void costs

2,477 2,409 6,212 11,098

Recoverable service charge costs

15,566

5. Operating segments The Board is responsible for setting the Group’s strategy and business model. The key measure of performance used by the Board to assess the Group’s performance is the total return on the Group’s net asset value. As the total return on the Group’s net asset value is calculated based on the net asset value per share calculated under IFRS as shown at the foot of the Consolidated Balance Sheet, assuming dividends are reinvested, the key performance measure is that prepared under IFRS. Therefore, no reconciliation is required between the measure of profit or loss used by the Board and that contained in the financial statements. The Board has considered the requirements of IFRS 8 ‘Operating Segments’. The Board is of the opinion that the Group, through its subsidiary undertakings, operates in one reportable industry segment, namely real estate investment, and across one primary geographical area, namely the United Kingdom, and therefore no segmental reporting is required. The portfolio consists of 49 commercial properties, which are in the industrial, office, retail and leisure sectors. 6. Administrative expenses

2023 £000

2022 £000

3,487 195 2,273 5,955

Director and staff costs Auditor’s remuneration

3,415 206 2,134 5,755

Other administrative expenses

Picton Property Income Limited

140

Powered by