Value and Indexed Prop Inc Tst PLC Acquisition and Year End Portfolio Valuation (1684W)
April 14 2023 - 1:00AM
UK Regulatory
TIDMVIP
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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