21 October Highlights during the quarter included:

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21 October 2015 Picton (LSE: PCTN), the income focused property

ended 30 September 2015 and Interim Dividend.

to 393.1 million (30 June 2015: 382.6 million).

8 pence). Total return for the quarter of 3.9% (30 June 2015: 4.6%).

4%), reflecting a lower cash balance following property acquisitions.

8 years, with a weighted average interest rate fixed at 4.6% per annum.

825 pence per share declared and to be paid on 30 November 2015 (30

Post-tax dividend cover for the quarter of 122% (30 June 2015: 101%).

1 21 October 2015 Picton (LSE: PCTN), the income focused property investment company, announces its Net Asset Value for the quarter ended 30 September 2015 and Interim Dividend. Highlights during the quarter included: Financial Net Assets increased to million (30 June 2015: million). NAV/EPRA NAV per share rose 2.8% to 72.8 pence (30 June 2015: 70.8 pence). Total return for the quarter of 3.9% (30 June 2015: 4.6%). Net gearing of 34.6% (30 June 2015: 31.4%), reflecting a lower cash balance following property acquisitions. Average debt maturity of 11.8 years, with a weighted average interest rate fixed at 4.6% per annum. Dividend Dividend of pence per share declared and to be paid on 30 November 2015 (30 June 2015: pence per share). Post-tax dividend cover for the quarter of 122% (30 June 2015: 101%). Dividend yield of 4.6%, based on a share price of 71.5 pence on 19 October Portfolio Activity Like-for-like increase in property portfolio valuation of 2.2% (30 June 2015: 2.9%), with the strongest valuation gains in the central London office subsector. Made two income accretive acquisitions: a modern office building in central Glasgow for million, yielding 7.8%, and a single let retail warehouse in Sheffield for 17.7 million, yielding 6.6%. Completed eight lettings, adding 420,000 per annum to the rent roll (after incentives); three lease renewals securing 210,000 per annum (after incentives) and six rent reviews securing an uplift of over 40,000 per annum. Occupancy maintained at 95% (30 June 2015: 95%).

2 Commenting, Nick Thompson, Chairman of Picton, said: Over the quarter, we continued to deliver strong returns to investors, increasing net assets and improving dividend cover. We have now also fully invested the proceeds from our recent Placing Programme into new assets that are already contributing to income growth. Michael Morris, Chief Executive of Picton Capital, added: We have continued with our strategy to reshape the portfolio by acquiring attractive new assets at yields which will enhance earnings. In addition, we continue to make good progress with our asset management initiatives across the portfolio and have maintained high occupancy over the quarter. For further information: Tavistock Jeremy Carey/James Verstringhe, , Picton Capital Limited Michael Morris, , The Company Secretary Northern Trust International Fund Administration Services (Guernsey) Limited Trafalgar Court Les Banques St Peter Port Guernsey GY1 3QL David Sauvarin, , Note to Editors Picton Property Income Limited ('Picton') is an income focused, property investment company listed on the London Stock Exchange. Picton can invest both directly and indirectly in commercial property across the United Kingdom. With Net Assets of million at 30 September 2015, the Company's objective is to provide shareholders with an attractive level of income, together with the potential for capital growth by investing in the principal commercial property sectors.

3 NET ASSET VALUE The unaudited Net Asset Value ( NAV ) of Picton, as at 30 September 2015, was million, reflecting 72.8 pence per share, an increase of 2.8% over the quarter. The NAV attributable to the ordinary shares is calculated under International Financial Reporting Standards and incorporates the external portfolio valuation as at 30 September 2015, including income for the quarter, but does not include a provision for the dividend this quarter which will be paid in November The next independent valuation of the property portfolio is scheduled for December 2015 and the NAV per share, as at 31 December 2015, will be announced in January A detailed breakdown of the NAV is included in the Appendix. DIVIDEND An interim dividend of pence per share is declared in respect of the period 1 July 2015 to 30 September 2015 (1 April 2015 to 30 June 2015: pence). The dividend will be paid on 30 November 2015 to shareholders on the register on 13 November The exdividend date is 12 November Post-tax dividend cover for the quarter was 122% (30 June 2015: 101%). DEBT The Group has total borrowings of million with a fixed weighted average interest rate of 4.6% and a weighted average debt maturity profile of approximately 11.8 years. As at 30 September 2015, net gearing, calculated as total debt including ZDPs, less cash, as a proportion of gross property value, was 34.6% (30 June 2015: 31.4%) and principally reflected a lower cash balance at September 2015 compared with June 2015, following two property acquisitions. MARKET BACKGROUND According to the MSCI IPD Monthly Index, total returns were 3.4% in the quarter to September 2015, compared to 3.6% in the quarter to June Capital growth remained positive and was 2.1% over the quarter, compared with 2.2% in June Across the principal IPD sectors, office values rose by 3.1% (June 2015: 3.9%), industrial by 3.1% (June 2015: 2.8%) and retail by 0.8% (June 2015: 0.7%). Over the quarter, 36 of the 37 IPD segments recorded positive capital growth, unchanged from last quarter.

4 Over the quarter to September, rents grew by 1.2%, compared with 1.1% in June Across the principal IPD sectors, office rental values rose by 2.3% (June 2015: 2.3%), industrial by 1.4% (June 2015: 1.1%) and retail by 0.3% (June 2015: 0.2%). Positive rental growth was recorded in 29 of the 37 segments, unchanged from the previous quarter, with the segments recording negative movements predominantly in the retail sector. The occupancy rate in the September IPD Monthly Index was marginally lower at 90.6% (June 2015: 91.2%). PORTFOLIO UPDATE The portfolio comprises 58 properties which produce an annualised contractual net rental income of 40 million, reflecting a net initial yield of 6.1% and a net reversionary yield of 6.9%. The weighted average unexpired lease term (to first termination) is 6.0 years. The portfolio valuation increased by 2.2% during the period, with central London offices again performing particularly well. Occupancy was maintained at 95%. Key highlights in the quarter included: Industrial At a unit in River Way, Harlow, which remains fully let, we secured a 16% uplift in rent at the February 2015 rent review, increasing the rent to 169,600 per annum. The uplift was 6% ahead of ERV. Following completion of the refurbishment works to four vacant units at Lyon Business Park, Barking, terms have been agreed in respect of one unit, and we expect strong interest in the remaining units. At Parkbury, Radlett, we renewed one lease for a further five years, increasing the previous passing rent by 5% to 103,800 per annum, which was 3% ahead of ERV. One unit came back during the quarter and is being refurbished. Office At Angel Gate, London EC1, we continue to implement a rolling refurbishment programme to upgrade space. As a result of this we have completed the letting of one unit at an annual rent of 131,950 per annum, or per sq ft, 12% ahead of ERV. We are also under offer to lease a further two units at a combined rent of 307,000 per annum, equivalent to per sq ft, 3.2% ahead of ERV. We are currently refurbishing a further unit which will complete in Q We acquired a modern office building in Glasgow for million, reflecting a net initial yield of 7.8%. 180 West George Street was constructed in 2000 and provides 52,100 sq ft of office accommodation over basement, ground and six upper floors and is located on a prime street in the heart of Glasgow's central business district. It is

5 fully let and produces a net annual rental income of 1.18 million, equivalent to an average rent of under 23 per sq ft. Occupiers include TSB Bank, Standard Life and Michael Page and the weighted average unexpired lease term is 2.4 years. Retail / Leisure We acquired a freehold retail warehouse in Sheffield for 17.7 million, reflecting a net initial yield of 6.6%. The property is well located close to Sheffield city centre, in an established retail warehouse location and adjacent to Queens Road Retail Park. It was built in 2002 on a nine acre site, comprising a 103,000 sq ft retail warehouse with a 40,000 sq ft outdoor garden centre, builders yard and 460 space car park. The property is leased to B&Q plc for a further 12.4 years at an annual rent of 1.24 million, which equates to a low overall rent of approximately 12 per sq ft and is subject to review in 2017.

6 APPENDIX NET ASSETS SUMMARY The unaudited Net Asset Value is as follows: 30 Sept 2015 million 30 June 2015 million 31 Mar 2015 million Investment properties * Other assets Cash Other liabilities (19.0) (19.1) (17.8) Borrowings: Loan facilities (206.2) (206.5) (206.7) ZDP s (27.1) (26.5) (26.1) Net Assets Net Asset Value per share 72.8p 70.8p 68.5p * The investment property valuation is stated net of lease incentives. The movements in Net Asset Value can be summarised as follows; Total Movement Per share million % Pence NAV at 30 June Movement in property values Net income after tax for the period Dividends paid (4.4) (1.2) (0.8) NAV at 30 Sept

7 PORTFOLIO COMPOSITION The Group s current portfolio is structured as follows:- Sector Weighting 30 Sept 2015 Like for Like Valuation Change Industrial 37.0% 1.6% Office Central/Greater London 18.6% 4.7% Office Rest of UK 14.4% 2.3% Retail 14.7% 0.6% Retail Warehouse 13.1% 0.0% Leisure 2.2% 0.2% Total 100.0% 2.2% GEOGRAPHICAL WEIGHTINGS Geography Weighting 30 Sept 2015 South East 32.1% Central & Greater London 27.6% North 13.8% Midlands 14.5% Wales 4.0% South West 3.9% Scotland 3.7% Northern Ireland 0.4% Total 100.0% TOP TEN ASSETS The top ten assets, which represent 47% of the portfolio by capital value, are detailed below. Asset Sector Location Parkbury Industrial Estate, Radlett Industrial South East River Way Industrial Estate, Harlow Industrial South East Angel Gate Office Village, City Road, EC1 Office London Stanford House, Long Acre, WC2 Retail London Boundary House, Jewry Street, EC3 Office London 50 Farringdon Road, EC1 Office London Shipton Way, Rushden, Northamptonshire Industrial East Midlands Pembroke Court, Chatham Office South East Phase II Parc Tawe, Swansea Retail Warehouse Wales Queens Road, Sheffield Retail Warehouse Yorkshire & Humberside ENDS

Picton property income limited. Half Year Report 2017

Picton property income limited Half Year Report Picton Property Income Limited Half Year Report www.picton.co.uk Welcome to our half year report Who we are Picton Property Income Limited is an award-winning