Value & Index Prop - Half Yearly Property Portfolio Valuation
13/04/2022 07:00
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RNS Number : 1784I Value and Indexed Prop Inc Tst PLC 13 April 2022
13 APRIL 2022
VALUE AND INDEXED PROPERTY INCOME TRUST PLC
31 MARCH 2022 - HALF YEARLY PROPERTY PORTFOLIO VALUATION
Value and Indexed Property Income Trust PLC ("VIP" or "the Company"), the
long, strong, indexed property income specialists, announces an increase in
its direct commercial property portfolio to £155.478m as at 31 March 2022, up
from £110.05m at Savills' previous independent half-yearly valuation at 30
September 2021. The increase was driven both by net acquisitions and
valuation uplift. VIP is now almost fully invested after its transition to a
predominantly Property Trust.
· VIP's property portfolio has delivered a total return of 8.8% over
the past six months and 20.2% over the past year. This growth was driven by a
valuation uplift of 8.5% on the properties held over the 6 months (leisure
16.1%, industrials 12.4%, supermarkets 8.1%, other 7.1%, hotels 5.4%, pubs
4.1% and roadside 2.0%). These properties showed a total return of 11.0%,
against a return of 8.8% on the whole portfolio reflecting substantial
purchase costs on new acquisitions.
· The asset split is now 83.3% property, 14.5% UK equities and 2.2%
cash.
· The portfolio's Weighted Average Unexpired Lease Term is 12.8 years
and 95.8% of the rental income is indexed or fixed. The portfolio running
yield is 5.4% (from 5.7% as at end-December 2021). The portfolio remains
well-spread with a focus on industrials (33%) and supermarkets (27%) and no
offices.
· One property was purchased over the last quarter; a Sainsbury's
supermarket located in Garstang, Lancashire on a lease to June 2035, for
£10.62m (including costs) reflecting a Net Initial Yield of 4.5% with five
yearly RPI linked rent increases (1.5% minimum and 4% maximum). Three
properties were sold during the quarter; two Co-op stores and a Buzz Bingo,
for £5.588m in total, 18.9% ahead of their combined September 2021
valuations. One of these sales completed and two exchanged in March 2022,
and all transactions are reflected in the 31 March 2022 reported valuation.
· The three largest holdings in VIP's property-backed equity portfolio
at 31 March 2022 were BMO Real Estate Investments, Urban Logistics REIT and
Tritax Big Box REIT.
The property portfolio aims to deliver long term above average real returns
(benchmark MSCI Quarterly Property Index) from a well spread portfolio mainly
of commercial properties.
The Company is in advanced negotiations to raise further long-term fixed rate
debt.
END
Enquiries:
OLIM Property Limited, Investment Manager
Tel: 020 7846 3252
Matthew.oakeshott@olimproperty.co.uk
Louise.cleary@olimproperty.co.uk
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