REG - Value & Index Prop - Publication of Circular

Value and Indexed Property Income TrustAnnouncement

25/02/2025 12:45

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RNS Number : 4094Y  Value and Indexed Prop Inc Tst PLC  25 February 2025

VALUE AND INDEXED PROPERTY INCOME TRUST PLC

LEI: 213800CU1PIC7GAER820

PUBLICATION OF CIRCULAR IN RELATION TO RECOMMENDED PROPOSALS TO ENTER THE UK
REIT REGIME AND AMEND THE COMPANY'S ARTICLES OF ASSOCIATION

 
       25 February 2025

The Company announces that it has today published a circular (the "Circular")
in connection with the Board's recommended proposals for the Company to enter
the UK REIT regime and make the necessary amendments to its articles of
association (the "Proposals").

 

The Board believes that it is the opportune time and will be in the best
interests of the Company and its Shareholders as a whole to change the
Company's tax status from an Investment Trust to a Real Estate Investment
Trust (REIT).  The Board believes this should allow the Company to continue
increasing the dividend at least in line with inflation and improve the
marketability and liquidity of the Company's Shares.

 

The Proposals are conditional on Shareholders approving the amendments to the
Company's articles of association.  The Circular contains further details of
the Proposals and a notice of general meeting of the Company (the "General
Meeting"). The General Meeting will be held at 12.30 p.m. on 20 March 2025 at
the offices of Dickson Minto LLP, 16 Charlotte Square, Edinburgh, EH2 4DF.

 

The main tax advantage of the UK REIT regime is that net rental income from a
REIT's property portfolio is exempt from UK income and corporation tax, as are
capital gains on the disposal of its rental properties.  In return, a REIT
has to distribute at least 90 per cent. of its income profits from its
property rental business to shareholders in each accounting period.

 

In the event Shareholders approve the Company's conversion to REIT status, its
dividends will typically be paid in the form of property income distributions
(PIDs).  These PIDs will be taxed in the hands of Shareholders as if they
were rental income. The UK REIT regime seeks to treat investors in a REIT as
if they held a direct interest in the REIT's property portfolio.
Institutional shareholders and individual shareholders who hold their Shares
in an ISA or SIPP should not be impacted by the Company's conversion to REIT
status.  Individual Shareholders who do not hold their Shares in an ISA or
SIPP will be taxed at higher rates following the REIT conversion.  If you are
in any doubt about the action you should take, you should immediately consult
an appropriately qualified independent financial adviser.

If Shareholders approve the Proposals, the Company is expected to enter the
REIT regime on 1 April 2025 and the Company will not pay any more dividends as
an Investment Trust.  The Company's next dividend, 3.4 pence per Share, will
be paid as a property income distribution (PID) after the Company has entered
the REIT regime.  It will be paid on 25 April 2025 to Shareholders on the
register on 28 March 2025.

The Board will also be recommending a final dividend of 3.6 pence per Share
for the financial year ending 31 March 2025, which will also be paid in the
form of a PID.  This will be subject to Shareholder approval at the Company's
annual general meeting to be held in July 2025.

A copy of the Circular has been submitted to the National Storage Mechanism
and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .  The Circular will
also be available on the Company's website at
https://www.olimproperty.co.uk/value-and-indexed-property-income-trust.html
(https://www.olimproperty.co.uk/value-and-indexed-property-income-trust.html)

Defined terms used in this announcement have the meanings given in the
Circular unless the context otherwise requires.

Timetable

The timetable for the General Meeting is as follows:

Latest time and date for receipt of Forms of Proxy ...............12.30 p.m.
on 18 March 2025

General
Meeting.....................................................................12.30
p.m. on 20 March 2025

Expected date of entry to UK REIT
regime
   1 April 2025

 

Notes:

All references to time in this document are to UK time. If any of the above
times and/or dates change, the revised time(s) and/or

date(s) will be notified to Shareholders by an announcement through a
Regulatory Information Service.

 

For further information please contact:

 

 Mandy Kelly, Maven Capital Partners UK LLP  Tel: +44 (0) 141 306 7400
 Company Secretary

 

Important Information

This announcement is released by the Company and the information contained
within this announcement is deemed by the Company to constitute inside
information for the purposes of Article 7 of the UK version of the EU Market
Abuse Regulation (Regulation (EU) No.596/2014) which forms part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the
publication of this announcement via a Regulatory Information Service, such
information is now considered to be in the public domain.

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