Value and Indexed Prop Inc Tst PLC Acquisition and Year End Portfolio Valuation (1684W)

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RNS Number : 1684W

Value and Indexed Prop Inc Tst PLC

14 April 2023

Value and Indexed Property Income Trust PLC ("VIP")

GBP7.8 million Acquisition and Year End Portfolio Valuation

Value and Indexed Property Income Trust PLC ("VIP") announces the acquisition of a freehold leisure investment at Coventry Crosspoint Business Park for GBP7.8 million at a net initial yield of 7.4%. Rental income totals GBP0.6 million, 77% to Tenpin Limited (bowling) on a lease without break until 2050, with RPI-linked rent increases capped at 4% and collared at 2% p.a. The two small restaurant units are let to Starbucks on an RPI-linked lease and Pizza Hut on a fixed increase lease with 11 and 9 years to run, respectively.

This acquisition completes VIP's transition to a fully invested property investment trust (99.5% of total assets), with its dividend now fully covered by contracted rental income. The portfolio contains no voids and no offices 29% of the portfolio is in industrial/warehouse property, 29% in supermarkets and 42% is in alternatives, including hotels, pubs, bowling and a caravan park.

Over VIP's year to 31 March 2023, three long-let property purchases were completed for GBP25.5 million, an M&S supermarket in Rayleigh, a new Premier Inn at Alnwick and the Coventry leisure investment. Six smaller, mainly over-rented, properties were sold for GBP9.8 million (three pubs, a bingo hall and two supermarkets).

100% of rent has been collected, and 60% of rental income comes from the top 6 tenants - Marks & Spencer, Government/Local Authorities, Ten Entertainment Group, Premier Inn, Sainsbury's and the Co-operative Group.

The Portfolio's weighted average unexpired lease term (WAULT) is now 12.6 years. 80% of the portfolio has indexed and 16% fixed increases, and 96% of VIP's properties have an EPC (Energy Performance Certificate) Rating of A-C. Over the year, rent reviews were completed on 15 of the 39 properties, adding GBP0.23 million (+ 6.4%) of rental income.

Portfolio Valuation

Savills' year end independent valuation of VIP's portfolio totalled GBP150.5million, at a net initial yield of 5.8%, against GBP157.55 million (at a yield of 5.0%) at end-September 2022. The total return was

-9.7% over the past six months and -7.8% over the past year. Both returns will be significantly better than the benchmark for this portfolio, the MSCI Quarterly Index. On a like for like basis, excluding purchases and sales, the portfolio's capital value fell by 0.1% in the first half of the year and 12.7% in the second half. Full details will be contained in the Annual Report for the year to 31 March 2023.

The average interest rate payable on VIP's debt is 3.8%. 96% is at a fixed rate. The average debt maturity is 7.9 years and the Loan to Value ratio is 33%.

Enquiries:

OLIM Property Limited, Investment Manager

Tel: 020 7846 3252

louise.cleary@olimproperty.co.uk

matthew.oakeshott@olimproperty.co.uk

14 April 2023

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