Dividend Policy Review

11 March 2015 PICTON PROPERTY INCOME LIMITED ("Picton" or the "Company") DIVIDEND POLICY REVIEW The Board of Picton today announces its intention to increase its dividenddistribution to shareholders on an ongoing basis. Background Since September 2012,and following completion of a significant refinancingexercise, Picton has paid a well-covered dividend of 3 pence per share annually.Equally, occupancy within the portfolio has risen from 89% to 95% therebyreducing associated void costs and improving the underlying income profile. £85.2 million of primary equity has been raised since September 2012, which hasbeen principally deployed into new assets or re-invested into the existingportfolio. Furthermore the Company has seen a material increase in the value ofthe underlying property portfolio on a like-for-like basis. The cumulativeeffect of these has resulted in net assets rising by 75% between September2012 and December 2014. The Company indicated last year as part of its placing programme that thesuccessful deployment of proceeds into income accretive acquisitions, combinedwith the economies of scale that arose in respect of Picton's internalisedstructure, could potentially lead to an increase in dividend payments. In the first nine months of the current financial year, to 31 December 2014,the Company has paid dividends totalling 2.25 pence per share with an averagedividend cover ratio* of 1.15. As a result of the success of its ongoingPlacing Programme and the subsequent deployment of these proceeds in higheryielding assets, the Company's underlying profitability and capacity fordividend payments has improved. Dividend increase The Board of Picton has recently undertaken a detailed dividend policy review,the results of which show that, in its view, it is now appropriate to updatethe Company's distribution policy to reflect the ongoing strength of theCompany's recurring income stream. The Company pays quarterly dividends to its shareholders, with the lastdividend being 0.75 pence per share in respect of the period 1 October 2014 to31 December 2014. The Board today announces its current intention to pay adividend of 0.825 pence per share for the period 1 January 2015 to 31 March2015, a 10% increase on the preceding level. It is expected that this dividendwill be declared in April 2015 and paid in May 2015. This proposed change to the Company's dividend policy will reflect anannualised dividend of 3.3 pence per annum **. Nicholas Thompson, Chairman, commented: "This is a significant milestone forPicton. It reflects the improved market conditions that we are operating in,alongside the benefits which are starting to flow from the economies of scalefrom our growth. Over the last 12 months we have had considerable successimproving occupancy and de-risking the income profile within the portfolio.The increase in dividend reflects this enhanced position." *Dividend Cover ratio is defined as the net income after tax, as a proportionof dividends paid over the period. ** These are targets only and not profit forecasts. There can be no assurancethat these targets can or will be met and they should not be seen as anindication of the Company's expected or actual results or returns. ENDS For further information: TavistockJeremy Carey/James Verstringhe, 020 7920 3150,[email protected] Picton Capital LimitedMichael Morris, 020 7011 9980, [email protected] The Company SecretaryNorthern Trust International Fund Administration Services (Guernsey) LimitedTrafalgar CourtLes BanquesSt Peter PortGuernseyGY1 3QL David Sauvarin, 01481 745001, [email protected] Note to Editors Picton Property Income Limited ('Picton') is an income focused propertyinvestment company listed on the London Stock Exchange. Picton can invest bothdirectly and indirectly in commercial property across the United Kingdom. With Net Assets of £315.7 million at 31 December 2014 and approximately 870investors, the Company's objective is to provide shareholders with anattractive level of income, together with the potential for capital growth byinvesting in the principal commercial propertysectors.www.pictonproperty.co.uk