Value and Indexed Prop Inc Tst PLC Portfolio Update (4489R)
27 Octubre 2023 - 1:00AM
UK Regulatory
TIDMVIP
RNS Number : 4489R
Value and Indexed Prop Inc Tst PLC
27 October 2023
27 October 2023
Value and Indexed Property Income Trust PLC - VIP
Portfolio Update as at 30 September 2023
The Board of Value and Indexed Property Income Trust PLC
("VIP"), the specialist trust investing directly in UK commercial
property to deliver long, strong, indexed income, announces a
portfolio update ahead of its results for the half year ended 30
September 2023, which will be released in mid-November 2023.
Portfolio Update
Savills' independent valuation as at period ended September 2023
totalled GBP135.45 million (31 March 2023: GBP150.50 million) with
a running yield of 6.5% (31 March 2023: 6.2%) reflecting a net
initial yield of 6.1% (31 March 2023: 5.8%) after deducting
notional purchase costs. The average lot size is GBP3.9
million.
The valuation reflects a 5.0% like-for-like reduction in capital
value, of the 35 properties held over the six months, due to the
impact of rising interest rates across the property investment
market and economic and political turbulence. The total return,
taking capital and income together was -1.8%. This is likely to be
slightly behind VIP's MSCI Quarterly Index Benchmark, as VIP's
portfolio outperformed on the income front but underperformed on
capital.
Four overrented properties were sold over the six month period,
two pubs, a supermarket and a petrol filling station for a gross
total of GBP8.08 million (+2.9% on March 2023 valuation). Several
acquisitions are under negotiation to reinvest the proceeds of
these sales in properties at higher yields with longer leases and
better long term growth prospects.
Contracted income from the 35 properties is now GBP8.795 million
(31 March 2023: GBP9.338 million from 39 properties). 65% of rental
income comes from the top six tenants - Marks & Spencer,
Government/Local Authorities, Ten Entertainment Group, Premier Inn,
Sainsbury's, and Parkdean Resorts.
The portfolio remains fully let with 100% of rent collected. VIP
has no exposure to offices, high street retail or shopping centres.
The seven sectors by rental value are: supermarkets, industrials,
bowling, other (caravan park plus a library), hotels, pubs and
roadside in that order.
Annual rent increases were completed at five properties over the
six months, with an average uplift of +3.8% on their passing rents
(three with RPI-linked increases and two with fixed uplifts). Nine
further rent reviews are due up to the period ending 31 March
2024.
VIP has a resilient, diversified portfolio with strong tenants
and long leases. The weighted average unexpired lease is 11.9 years
(if all breaks are exercised), with 69% of the rental income linked
to RPI, 12% linked to CPI, 15% with fixed increases and 4% with
open market upward only rent reviews.
97% of the portfolio now has EPC ratings of A to C (31 March
2023: 96%) and we continue to work with our tenants to upgrade
properties and improve energy efficiency.
Savills independently revalue the property portfolio on a
half-yearly basis at 31 March and 30 September.
Enquiries:
OLIM Property Limited, Investment Manager
Tel: 020 7846 3252
Matthew.oakeshott@olimproperty.co.uk
Louise.cleary@olimproperty.co.uk
Berenberg
Gillian Martin / Richard Bootle
Tel: +44 (0)20 3207 7800
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END
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