Picton Property Income Limited Annual Report 2023

Financial Statements/Continued

Notes to the consolidated financial statements/Continued

7. Director and staff costs/ Continued The three performance metrics are: ‒ Total shareholder return (TSR) of Picton Property Income Limited, compared to a comparator group of similar listed companies; ‒ Total property return (TPR) of the property assets held within the Group, compared to the MSCI UK Quarterly Property Index; and ‒ Growth in EPRA earnings per share (EPS) of the Group. The fair value of share grants is measured using the Monte Carlo model for the TSR metric and a Black-Scholes model for the TPR and EPS metrics. The fair value is recognised over the expected vesting period. For the awards made during this year and the previous year the main inputs and assumptions of the models, and the resulting fair values, are:

Assumptions Grant date

17 June 2022

22 June 2021

92.6p

Share price at date of grant

87.3p

Nil

Exercise price Expected term

Nil

3 years 2.28% 28.3% 32.4% 25.0% (2.5)% 2.2% 46.0p 92.6p 92.6p

3 years 0.23% 28.3% 31.8% 29.4% 0.3% 10.7% 37.7p 87.3p 87.3p

Risk-free rate – TSR condition Share price volatility – TSR condition

Median volatility of comparator group – TSR condition

Correlation – TSR condition

TSR performance at grant date – TSR condition

Median TSR performance of comparator group at grant date – TSR condition

Fair value – TSR condition (Monte Carlo method) Fair value – TPR condition (Black-Scholes model) Fair value – EPS condition (Black-Scholes model)

The Trustee of the Company’s Employee Benefit Trust acquired 1,250,000 ordinary shares during the year for £1,126,000 (2022: 750,000 shares for £730,000). The Group employed ten members of staff at 31 March 2023 (2022: nine). The average number of people employed by the Group for the year ended 31 March 2023 was nine (2022: ten). 8. Interest paid

2023 £000

2022 £000

8,576

Interest payable on loans

8,134

175 283

Interest on obligations under finance leases

129 239

Non-utilisation fees

9,034

8,502

The loan arrangement costs incurred to 31 March 2023 are £3,328,000 (2022: £3,325,000). These are amortised over the duration of the loans with £304,000 amortised in the year ended 31 March 2023 and included in interest payable on loans (2022: £967,000). 9. Tax The charge for the year is:

2023 £000

2022 £000

– –

Tax expense in year Total tax charge

– –

Picton Property Income Limited

142

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