NAV, Dividend and IMS

21 January 2015

                        PICTON PROPERTY INCOME LIMITED                         
                  ("Picton" or the "Company" or the "Group")                   

           Net Asset Value as at 31 December 2014, Interim Dividend            
                       and Interim Management Statement                        

Picton (LSE: PCTN) announces its Net Asset Value for the quarter ended 31 December 2014 
and Interim Dividend.

Highlights during the quarter included:-

Financial

  * Net Assets increased to £315.7 million (30 September 2014: £273.7 million).
   
  * NAV/EPRA NAV per share rose 5.9% to 66.0 pence (30 September 2014: 62.3 pence).
   
  * Like-for-like increase in property portfolio valuation of 4.1% (30 September 2014: 3.8%).
   
  * Average debt maturity of 12.6 years, with a weighted average interest rate
    maintained at 4.5% per annum.
   
  * Raised £25 million of new equity, at 2.3% premium to September NAV, for
    further property acquisitions.
   
  * Issued notice to repay remaining £1.8 million loan notes by 31 March 2015.
   
  * Reduction in net gearing to 36.7% (September 2014: 43.2%), reflecting
    improved cash position and valuation gains at quarter end.
   
Dividend

  * Dividend of 0.75 pence per share declared and to be paid on 27 February
    2015 (30 September 2014: 0.75 pence per share).
   
  * Post-tax dividend cover over the quarter of 118% (30 September 2014: 125%).
   
  * Dividend yield of 4.4%, based on a share price of 67.5 pence on 19 January
    2015.
   
Portfolio Activity

  * Strong valuation gain in office and industrial portfolios driven by leasing
    and asset management activity.
   
  * Further improvement in occupancy to 95% (September 2014: 94%)
   
  * Completed 16 lettings, adding £1.2 million per annum to the rent roll
    (before incentives) and 10 lease renewals securing £1.2 million per annum
    (before incentives).
   
  * Letting completed at Citylink, East Croydon, the largest single vacancy
    within the portfolio, for an annual rent of £0.52 million which is in line
    with ERV.
   
  * Completed the disposal of one small non-core asset in Brighton for £1.1
    million.
   
  * Exchanged contracts to sell Middleton Trade Park for £2.2 million which
    completed following the quarter end.
   
  * Further increase in average lot size, following disposals, to £8.8 million
    (September 2014: £8.4 million).
   
Commenting, Nick Thompson, Chairman of Picton said:

"We have continued with our placing programme this quarter, further increasing
the size of the Company, diversifying our shareholder register and positioning
ourselves to benefit from the economies of scale through growth. We look
forward to providing further updates as the Company progresses its investment
programme."

Michael Morris, Chief Executive of Picton Capital, added:

"We have made good progress over the quarter, enhancing the portfolio by
investing in our assets, letting space and disposing of non-core assets. We
have also benefited from positive capital growth across the portfolio and seen
encouraging signs of strengthening occupier activity outside the London
markets."

For further information:

Tavistock
Jeremy Carey/James Verstringhe, 020 7920 3150, [e-mail]

Picton Capital Limited
Michael Morris, 020 7011 9980, [e-mail]

The Company Secretary
Northern Trust International Fund Administration Services (Guernsey) Limited
Trafalgar Court
Les Banques
St Peter Port
Guernsey
GY1 3QL

David Sauvarin, 01481 745 001, [e-mail]

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 £315.7 million at 31 December 2014 and approximately 870
investors, 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. 
www.pictonproperty.co.uk

NET ASSET VALUE

The unaudited Net Asset Value (`NAV') of Picton, as at 31 December 2014, was £
315.7 million, reflecting 66.0 pence per share, an increase of 5.9% 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 31 December 2014, including income for the quarter, but does not include
a provision for the quarterly dividend announced herein, which will be paid in
February 2015.

The next independent valuation of the property portfolio is scheduled for March
2015 and the NAV per share, as at 31 March 2015, will be issued in April 2015.

A detailed breakdown of the NAV is included in the Appendix.

DIVIDEND

An interim dividend of 0.75 pence per share is declared in respect of the
period 1 October 2014 to 31 December 2014 (1 July 2014 to 30 September 2014:
0.75 pence).

The dividend will be paid on 27 February 2015 to shareholders on the register
on 13 February 2015. The ex-dividend date is 12 February 2015.

Post-tax dividend cover during the quarter was 118%.

DEBT

The Group has total borrowings of £234.4 million with a weighted average
interest rate of 4.5%, of which 99% is fixed with a weighted average debt
maturity profile of approximately 12.6 years.

In order to further simplify the corporate structure notice has been given to
the holders of the Group's loan notes that they will be fully repaid by 31
March 2015, for a total of £1.8 million. This has a small positive impact on
dividend cover.

As at 31 December 2014, net gearing, calculated as total debt, including ZDPs,
less cash, as a proportion of gross property value, was 36.7% (30 September
2014: 43.2%).

EQUITY ISSUANCE ANDPLACING PROGRAMME

On 1 May 2014 the Company announced an Initial Offer, Offer for Subscription
and Placing Programme.

A second element to the Placing Programme was announced on 1 December 2014 and
as a result a further 39,215,686 shares were issued on 22 December 2014 for
gross proceeds of £25 million.

Under the Placing Programme, the Company has the ability to issue a further
71,462,280 shares, on or before 30 April 2015.

Further details are contained within the Prospectus dated 1 May 2014 and
supplementary prospectuses dated 14 July 2014, 4 August 2014, 29 October 2014
and 21 November 2014 which are available on the Company's website 
www.pictonproperty.co.uk

MARKET BACKGROUND

According to the IPD Monthly Index, capital growth was 2.9% over the quarter,
compared with 3.2% in September 2014. Over the quarter rental growth was 1.0%,
compared with 0.8% in September 2014. This is the highest level of rental
growth in a quarter, since September 2007. Overall total returns were 4.4% in
the quarter to December 2014, compared to 4.7% in the quarter to September
2014.

Across the principal IPD sectors, office values rose by 4.3% (September 2014:
4.0%), industrial by 4.3% (September 2014: 3.9%) and retail by 1.3% (September
2014: 2.4%).

Over the quarter, 34 of the 37 IPD segments recorded positive capital growth
and 25 of the 37 segments recorded positive rental growth. All of the negative
movements were either in the standard retail, retail warehouse or shopping
centre segments.

The occupancy rate in the December IPD Monthly Index rose to 91.3% (September
2014: 90.5%).

PORTFOLIO UPDATE

We continued the positive momentum over the quarter, improving occupancy from
94% to over 95%. Positive valuation uplifts were seen across the Industrial,
Office and Retail sectors within the portfolio which, overall, increased 4.1%
over the period.

As at 31 December 2014, the portfolio had a net initial yield of 6.1% (allowing
for void holding costs) or 6.2% (based on contracted net income) and a net
reversionary yield of 7.2%. The weighted average unexpired lease term (to first
termination) was 6.3 years.

Key highlights over the quarter were as follows:-

Industrial

In Radlett, Unit 11 was let to Alliance Healthcare, securing £57,942 per annum,
6% above ERV with a nominal two months rent free. In addition, at Unit 8 we
removed a June 2015 break clause and simultaneously settled an outstanding rent
review at £127,600 per annum, a 5.5% uplift on the previous rent and securing
the occupier until 2020. The estate is now fully let.

At River Way Industrial Estate in Harlow, we renewed the lease on Fleet House
to DHL securing £675,000 per annum, a 31% uplift on the previous passing rent.
TNT vacated Unit D in October and this was let in December, securing £370,000
per annum, which represents an 8% uplift on the previous passing rent. The
estate remains fully let.

Terms were agreed to surrender the lease of Unit O at Lyon Business Park in
Barking, which completed following the quarter end, with the outgoing occupier
paying a surrender premium of £400,000. The 25,000 sq ft unit is currently
being refurbished ahead of marketing.

At Easter Court in Warrington, we assisted an occupier with their expansion by
relocating them from a small unit, where they were paying £21,850 per annum, to
a larger unit paying £51,600 per annum, 10% above ERV. This leaves only the
remaining small unit to let.

Contracts were exchanged to dispose of Middleton Trade Park in Lancashire for £
2.2 million, and the sale completed just after the period end. The sale of this
24,000 sq ft multi-let estate follows considerable letting success, which
included the letting of six units to a range of occupiers including Screwfix.
The sale price is 23% ahead of the apportioned valuation when the asset was
purchased as part of Picton's acquisition of Rugby REIT in 2010 and 8% ahead of
the September valuation.

Office

Significant progress was made at the Company's largest void over the quarter.
Education provider BPP took 24,000 sq ft of office space at the newly
refurbished Grade A Citylink in East Croydon. BPP will occupy the whole of the
west side of the building at an annual rent of £521,600 per annum, which is in
line with ERV. Citylink is now 90% occupied, leaving one small ground floor
suite of 4,845 sq ft available. The other major occupier is RBS.

In central London, we completed the refurbishment of unit 28 Angel Gate,
implementing an architect-led scheme, replicating the design of the recently
let unit 24, which set a new rental tone on the estate of £36 per sq ft.
Marketing is underway and we have strong occupier interest.

At 401 Grafton Gate in Milton Keynes, we renewed Tech Mahindra's leases of
24,700 sq ft for a further five years at a rent of £398,750 per annum, in line
with ERV.

Significant refurbishment projects have been completed at Merchants House in
Chester and Queens House in Glasgow, where we have seen considerable lettings
success. During the period, we achieved three lettings in Chester for a
combined rent of £80,770 per annum and three lettings in Glasgow for a combined
rent of £68,230 per annum. We have good interest in other remaining suites at
both properties.

Retail / Leisure

Having recently restructured the long leasehold with Brighton City Council, we
disposed of a small retail and restaurant unit in Bartholomew Square, Brighton,
for a combined consideration of £1.1 million. This was in line with the
September valuation.

Due to a tenant administration at Regency Wharf, Birmingham, this asset saw a
small decline in value. Terms have now been agreed to re-let the units and this
is expected to complete by March 2015.

                                   Appendix                                    

NET ASSETS SUMMARY

The unaudited Net Asset Value is as follows:

                               31 Dec 2014      30 Sep 2014      30 Jun 2014   
                                 £million         £million         £million    
                                                                               
Investment properties *           504.7            487.1            441.3      
                                                                               
Other assets                       15.8             16.0             14.3      
                                                                               
Cash                               46.6             21.0             54.7      
                                                                               
Other liabilities                 (17.0)           (16.2)           (17.2)     
                                                                               
Borrowings: Loan facilities      (206.9)          (207.2)          (207.4)     
                                                                               
            Loan stock            (1.8)            (1.8)            (2.0)      
                                                                               
            ZDP's                (25.7)           (25.2)           (24.8)     
                                                                               
Net Assets                        315.7            273.7            258.9      
                                                                               
Net Asset Value per share         66.0p            62.3p            58.9p      

* The underlying 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 September 2014          273.7                              62.3      
                                                                               
Movement in property values        16.8             5.6              3.5       
                                                                               
Share issue                        24.4              -                -        
                                                                               
Share premium (net of issue        0.2              0.1              0.1       
costs)                                                                         
                                                                               
Net income after tax for the       3.9              1.3              0.8       
period                                                                         
                                                                               
Dividends paid                    (3.3)            (1.1)            (0.7)      
                                                                               
NAV at 31 December 2014           315.7             5.9              66.0      


PORTFOLIO COMPOSITION

The Group's current portfolio is structured as follows:-

Sector                                 Weighting             Like for Like     
                                   31 December 2014        Valuation Change    
                                                                               
Industrial                               42.3%                   4.1%          
Office - Central/Greater London          19.0%                   7.8%          
Office - Rest of UK                      13.2%                   4.5%          
Retail                                   17.3%                   1.6%          
Retail Warehouse                         5.6%                    0.9%          
Leisure                                  2.6%                   -1.6%         
Total                                   100.0%                   4.1%     
     

GEOGRAPHICAL WEIGHTINGS

Geography                                     Weighting         
                                          31 December 2014      
                                                                
South East                                      32.8%           
Central & Greater London                        29.2%           
North                                           12.4%           
Midlands                                        16.6%           
Wales                                           4.5%            
South West                                      2.5%            
Scotland                                        1.5%            
Northern Ireland                                0.5%            
Total                                          100.0%     
      

TOP TEN ASSETS

The top ten assets, which represent 49.8% 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       
Stanford House, Long Acre, WC2              Retail                  London         
Angel Gate Office Village, City Road, EC1   Office                  London         
50 Farringdon Road, EC1                     Office                  London         
Boundary House, Jewry Street, EC3           Office                  London         
Shipton Way, Rushden, Northamptonshire    Industrial             East Midlands     
Phase II Parc Tawe, Swansea            Retail Warehouse              Wales         
Colchester Business Park, Colchester        Office                South East       
1 Chancery Lane, WC2                        Office                  London