Value And Indexed Property Income Trust Plc Regulatory News (VIP)

Value and Indexed Property Income Trust PLC ("VIP")

£7.8 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 £7.8 million at a net initial yield of 7.4%. Rental income totals £0.6 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 £25.5 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 £9.8 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 £0.23 million (+ 6.4%) of rental income.

Portfolio Valuation

Savills' year end independent valuation of VIP's portfolio totalled £150.5million, at a net initial yield of 5.8%, against £157.55 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