Additional Information
Strategic Report
Governance
Financial Statements
EPRA BPR and supplementary disclosures (unaudited) for the year ended 31 March 2023
The European Public Real Estate Association (EPRA) is the industry body representing listed companies in the real estate sector. EPRA publishes Best Practices Recommendations (BPR) to establish consistent reporting by European property companies. Further information on the EPRA BPR can be found at www.epra.com. EPRA performance measures Measure Definition for EPRA measure 2023 2022 EPRA earnings Recurring earnings from core operational activities. £21.3m £21.2m EPRA earnings per share EPRA earnings per weighted number of ordinary shares. 3.9p 3.9p EPRA net reinstatement value (NRV) Assumes assets are never sold and aims to represent the value required to rebuild the entity. 110p 131p EPRA net tangible assets (NTA) Assumes entities buy and sell assets, thereby crystallising certain levels of deferred tax liability. 100p 120p EPRA net disposal value (NDV) Represents the shareholders’ value under a disposal scenario. 105p 119p EPRA net initial yield
Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property.
5.0%
4.1%
EPRA ‘topped up’ net initial yield This measure incorporates an adjustment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentives).
5.5%
4.8%
EPRA vacancy rate
Estimated Market Rental Value (ERV) of vacant space divided by ERV of the whole portfolio. Administrative & operating costs (including costs of direct vacancy) divided by gross rental income. Administrative & operating costs (excluding costs of direct vacancy) divided by gross rental income.
9.5%
7.2%
EPRA cost ratio
29.9%
26.0%
21.3% 27.0%
19.9% 21.3%
EPRA LTV
Debt divided by market value of the property.
EPRA earnings per share EPRA earnings represents the earnings from core operational activities, excluding investment property revaluations and gains/losses on asset disposals. It demonstrates the extent to which dividend payments are underpinned by recurring operational activities.
2023 £000
2022 £000
2021 £000
(89,530)
(Loss)/profit for the year after taxation Exclude: Investment property valuation movement Gains on disposal of investment properties Revaluation of owner-occupied property
146,986 33,801
110,433
(129,801)
(12,861)
–
(42)
(868)
382
–
– –
–
Debt prepayment fees
4,045
EPRA earnings
21,285 545,378
21,188 20,072 545,904 545,591
Weighted average number of shares in issue (000s)
EPRA earnings per share
3.9p
3.9p
3.7p
EPRA NRV per share The EPRA net reinstatement value measure highlights the value of net assets on a long-term basis. Assets and liabilities that are not expected to crystallise in normal circumstances such as the fair value of financial derivatives and deferred taxes on property valuation surpluses are therefore excluded. Since the aim of the metric is to also reflect what would be needed to recreate the Company through the investment market based on its current capital and financing structure, related costs such as real estate transfer taxes should be included.
2023 £000
2022 £000
2021 £000
547,624 52,759
Balance Sheet net assets
657,130 528,197 57,449 46,029
Purchasers’ costs Fair value of debt
– –
– –
– –
Deferred tax EPRA NRV
600,383 545,217
714,579 574,226 545,631 545,553
Shares in issue (000s) EPRA NRV per share
110p
131p
105p
Picton Property Income Limited Annual Report 2023
155
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