REG - Value & Index Prop - Trading Statement

Value and Indexed Property Income TrustAnnouncement

03/02/2023 07:00

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RNS Number : 7995O  Value and Indexed Prop Inc Tst PLC  03 February 2023

 

Value and Indexed Property Income Trust PLC - VIP

Third Quarter Update - Raising Income and Tenant Quality

 

Value and Indexed Property Income Trust PLC ("VIP") invests directly in UK
commercial property to deliver long, strong, indexed income. Since 30
September 2022, it has added £0.4 million of annualised rent, raising the
total contracted rent roll to £8.8 million, by:

 

1.   Completing the lease of a new 80 bedroom Premier Inn hotel and in-house
Brewers Fayre pub/restaurant at Alnwick, Northumberland, on practical
completion of development works in October 2022. The hotel and pub/restaurant
are open and trading. The property is let to Premier Inn for twenty five years
with a tenant's option to break in 2042, and five yearly CPI-linked rent
reviews to a maximum of 4% per annum; and

 

2.   Agreeing rent reviews at Dundee and Thetford (industrials) and
Doncaster (leisure), delivering an average uplift of 10.6% against their
previous passing rents.

 

There are no voids in the portfolio and 100% of rent has been collected.

 

The completion of the Alnwick development follows the purchase earlier in
VIP's year of an index-linked Marks & Spencer supermarket at Rayleigh,
Essex and the sale of five over-rented or short let properties. This activity
has further improved tenant quality with 54% of total rents payable by the top
five tenants - M&S, HM Government/Councils, Premier Inn, Co-op and
Sainsburys - up from 44% in March 2022.

 

VIP has a resilient, diversified portfolio with long leases (WAULT 12.1 years
to break) and indexed (80%) and fixed (16%) rent increases. 11 indexed rent
reviews have completed in VIP's financial year so far: 7 x annual rent
increases (5 @ 4%, 1 @ 7% and 1 @ 1.95%) and 4 x five yearly rent increases
(averaging a total uplift of 16.2%). There are 13 rent reviews falling due
over the next 12 months.

 

92% of VIP's properties have an EPC (Energy Performance Certificate) rating
A-C (up from 64% since March 2022) and we continue to work with our tenants to
improve energy efficiency.

 

VIP has a 36 year dividend growth record. The targeted total dividend for the
full year 2022/2023 is 12.9p, representing a yield of 5.8% at the closing
price of 222p on 1 February 2023. The Company is expected to fully cover the
dividend in 2023/2024 following reinvestment of the £5 million proceeds from
sales completed in September 2022. The interest rate payable on VIP's debt is
3.8%, of which 97% is fixed, with an average maturity of 8.1 years.

 

Savills independently revalue the property portfolio half-yearly at 31 March
and 30 September.

 

Enquiries:

OLIM Property Limited, Investment Manager

Tel: 020 7846 3252

Louise.cleary@olimproperty.co.uk

matthew.oakeshott@olimproperty.co.uk

 

 

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