Picton Property Income Limited Annual Report 2023

Additional Information

Strategic Report

Governance

Financial Statements

EPRA vacancy rate The EPRA vacancy rate is the estimated rental value (ERV) of vacant space divided by the ERV of the whole property, expressed as a percentage. There are no significant distorting factors influencing the EPRA vacancy rate.

2023 £000

2022 £000

2021 £000

5,311 55,774

Annualised potential rental value of vacant premises Annualised potential rental value for the complete property portfolio

3,594 3,980 49,776 45,357 7.2% 8.8%

EPRA vacancy rate

9.5%

EPRA cost ratio The EPRA cost ratio reflects the overheads and operating costs as a percentage of the gross rental income.

2023 £000

2022 £000

2021 £000

3,491 3,647 5,955

Property operating costs Property void costs Administrative expenses

2,477 2,384 2,409 2,199 5,755 5,388

Less: Ground rent costs

(376)

(283)

(207)

EPRA costs (including direct vacancy costs)

12,717 (3,647) 9,070 42,964 42,588 29.9% 21.3% (376)

10,358 9,764

Property void costs

(2,409)

(2,199)

EPRA costs (excluding direct vacancy costs)

7,949 7,565 40,133 36,558

Gross rental income Less ground rent costs Gross rental income

(283)

(207)

39,850 36,351 26.0% 26.9% 19.9% 20.8%

EPRA cost ratio (including direct vacancy costs) EPRA cost ratio (excluding direct vacancy costs)

The Company has not capitalised any overhead or operating expenses in the accounting years disclosed above. Only costs directly associated with the purchase or construction of properties as well as subsequent value-enhancing capital expenditure are capitalised. Capital expenditure The table below sets out the capital expenditure incurred over the financial year, in accordance with EPRA Best Practices Recommendations. 2023 2022

Total Group £000

Joint ventures £000

Total Group £000

Joint ventures £000

Group £000

Group £000

20,613

– – – – – – – – –

20,613

Acquisitions Development

25,005

– – – – – – – – –

25,005

Investment properties

Incremental lettable space No incremental lettable space

6,135

6,135

9,551

9,551

– –

– –

Tenant incentives

– –

– –

Other material non-allocated types of expenditure

Total capital expenditure

26,748

26,748

34,556

34,556

Conversion from accrual to cash basis Total capital expenditure on cash basis

26,748

26,748

34,556

34,556

 Picton Property Income Limited  Annual Report 2023

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