IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the

COVID-19 pandemic. The Company has not received any concessions for its ground rent costs and therefore accounting

treatment has not been affected.

The following standards and amendments have been considered, but have had no impact on the Company for the reporting period: ? Amendments to IFRS 3: Definition of a Business, the amendment to IFRS 3 Business Combinations clarifies that to be

considered a business, an integrated set of activities and assets must include, at a minimum, an input and a

substantive process that, together, significantly contribute to the ability to create output. Furthermore, it

clarifies that a business can exist without including all the inputs and processes needed to create outputs. ? Amendments to IAS 1 and IAS 8 Definition of Material, the amendments provide a new definition of material, the

amendments clarify that materiality will depend on the nature or magnitude of information, either individually or

in combination with other information, in the context of the financial statements. A misstatement of information is

material if it could reasonably be expected to influence decisions made by the primary users. ? Revised Conceptual Framework for Financial Reporting, the Conceptual Framework is not a standard, and none of the

concepts contained therein override the concepts or requirements in any standard. The revised Conceptual Framework

includes some new concepts, updated definitions and recognition criteria for assets and liabilities and clarifies

some important concepts.

There are a number of new standards and amendments to existing standards which have been published and are mandatory for the Company's accounting periods beginning on or after 1 April 2021 or later. The Company is not adopting these standards early. The following are the most relevant to the Company: ? Interest Rate Benchmark Reform - Phase 2 (Amendments to various standards: IFRS 9 'Financial Instruments', IAS 39

'Financial Instruments; Recognition and Measurement', IFRS 7 'Financial Instruments: Disclosures', IFRS 4

'Insurance Contracts' and IFRS 16 'Leases') ? Amendments to IAS 1 'Presentation of Financial Statements (effective 1 January 2022) ? Amendments to IFRS 3 'Business Combinations' (effective 1 January 2022)

The Company does not expect the adoption of the new accounting standards issued but not yet effective to have a significant impact on its financial statements.

2.2 Significant accounting judgements and estimates

The preparation of financial statements in accordance with IFRS requires the Directors of the Company to make judgements, estimates and assumptions that affect the reported amounts recognised in the financial statements. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability in the future.

There are not considered to be any judgements which have a significant effect on the amounts recognised in the financial statements, however, there is an estimate that will have a significant effect on the amounts recognised in the financial statements:

i) Valuation of investment property

The Company's investment property is held at fair value as determined by the independent valuer on the basis of fair value in accordance with the internationally accepted RICS Appraisal and Valuation Standards. Details of the considerations made in respect of the estimation are further detailed in note 11.

2.3 Segmental information

In accordance with IFRS 8, the Company considers each of its properties to be an individual operating segment, which are aggregated into one reporting segment, being investment in property in the UK.

2.4 Going concern

The Directors have made an assessment of the Company's ability to continue as a going concern, which takes into consideration the uncertainty caused by the COVID-19 pandemic, as well as the Company's cash flows, financial position, liquidity and borrowing facilities.

As at 31 March 2021, the Company had a cash balance of GBP17.45 million and has subsequently acquired two properties, Arrow Point Retail Park, Shrewsbury, for a gross purchase price of GBP8.35 million and 15-33 Union Street, Bristol, for a gross purchase price of GBP10.19 million. The Company has also subsequently drawn GBP11.00 million of its loan facility.

The Company had sufficient headroom against its borrowing covenants when last reported in April 2020. The Company reported a Loan to NAV of 25.15%, so had room for a GBP69.17 million fall in NAV before reaching the maximum Loan to NAV of 45% per the covenant. This limit can be increased to 55% when the option is exercised by the Company and certain conditions are met, which would allow for a further GBP15.96 million fall in NAV i.e. a total fall of GBP85.13 million. The Company also passed its most recent interest cover ratio ('ICR') tests in April 2021, reporting more than double the cover required on both a historical and projected basis.

The Company benefits from a secure, diversified income stream from a tenancy profile which is not overly reliant on any one tenant or sector. The Company has now collected over 90% of rents for each collection quarter since the onset of the COVID-19 pandemic.

Taking this into consideration, the Directors have reviewed a number of scenarios over 12 months from the date of approval of these financial statements, including a worst case plausible downside scenario which makes the following assumptions: ? failure of 30-35% of tenants (by passing rent); ? collection of 75-80% of remaining rents, with remaining collection deferred for two quarters; ? no new lettings or renewals, other than those where terms have already been agreed; ? a 10% fall in valuations; and ? no new acquisitions or disposals other than those which have completed since the year end (Arrow Point Retail Park,

Shrewsbury, and 15-33 Union Street, Bristol, as above).

In the above scenario, the Company is forecast to generate a positive cash flow before dividend payments, however would generate a cash flow much lower than its target dividend of 8 pps per annum. If no further drawdowns of the loan facility were made, the Company would maintain a gearing of 37% throughout the forecast period, meaning a headroom of over GBP43 million up to the 55% covenant with the option exercised. The Company's cash could be managed through the reduction and/or suspension of dividend payments, which would allow the existing cash resources of c. GBP7 million at the date of approval of the financial statements to be maintained.

In the above scenario, the Company is forecast to pass its ICR tests during the 12 month forecast period with a minimum cover of 7.6:1, compared with the lower limit of 5:1. assuming that no drawdowns or repayments of the facility were to be made. In the unlikely event that the Company were to breach its ICR covenant, it has the ability to cure the breach by placing cash on account with the bank. In the extremely unlikely event that the full balance of the facility was called in, the Company has certain liquid assets which could be realised quickly at, or close to, valuation. The Company could then continue to operate un-geared until it was able to refinance.

Given the Company's substantial headroom against its borrowing covenants, the Directors believe that the Company is well placed to manage its financing and business risks, including those associated with COVID-19, and the Directors are confident that the Company will have sufficient funds to meet its liabilities as they fall due for at least 12 months from the date of the approval of the financial statements have been prepared on a going concern basis.

2.5 Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below.

a) Presentation currency

These financial statements are presented in Sterling, which is the functional and presentational currency of the Company. The functional currency of the Company is principally determined by the primary economic environment in which it operates. The Company did not enter into any transactions in foreign currencies during the year.

b) Revenue recognition

i) Rental income

Rental income receivable under operating leases is recognised on a straight-line basis over the lease term.

Lease incentives, including rent free periods and payment to tenants, are also allocated to the Statement of Comprehensive Income on a straight-line basis over the lease term. The value of resulting accrued rental income is deducted from the valuation as provided by the valuer to arrive at the carrying value.

A modification to an operating lease in the form of a new lease incentive is accounted for as a new lease from the effective date of the modification. Any lease incentive existing on a modified lease will then be spread evenly over the new remaining life of the lease.

Contingent rental income is calculated based off actual turnover and is recognised when it is raised.

Amounts received from tenants to terminate leases or to compensate for dilapidations are recognised in the Statement of Comprehensive Income when the right to receive them arises.

Service charge income receivable under operating leases is charged based on budgeted service charge expenditure for a given property over a given service charge year. This income is recognised on a straight-line basis over the service charge year and any balance credits or charges on reconciliation following the end of the service charge year are recognised at the time they arise.

ii) Deferred income

Deferred income is any rental income that has been invoiced to the tenant but relates to future periods. It is reported as a current liability in the Statement of Financial Position.

c) Dividend income

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