Value and Indexed Property Income Trust PLC · LSE:VIP
Value and Indexed Property Income Trust — Shareholder Meeting (July 2024)
23 slides from Value and Indexed Property Income Trust's shareholder meeting presentation, Jul 11, 2024
Slide 1: Annual General Meeting
VALUE AND INDEXED PROPERTY INCOME TRUST PLC Annual General Meeting 11 July 2024 Long, strong, indexed property income
Slide 2: Overview, Portfolio update, Market update
• Overview • Portfolio update (All data 10 July 2024 unless otherwise stated) • Market update
Slide 3: Overview
Overview
Slide 4: VIP is a direct property investment trust
• VIP is a direct property investment trust • Long, strong indexed property income streams – 100% indexed • Specialises in smaller lot sizes where market less efficient and more liquid • Single let properties on full repairing and insuring leases – all EPCS A - C • Strategic insight and decisive act
Slide 5: Portfolio update
Portfolio update – All data 10 July 2024
Slide 6: Long, strong, indexed property income
Long, strong, indexed property income 50% Rent collection Rent Indexation Leases EPCs Income from top 5 tenants 12.3 years weighted average 100% 100% 100% unexpired lease length 32 35 EPCs rated rent collection rent index-related properties leases A-C Debt Property yield Dividend per share Annual di
Slide 7: Portfolio
Portfolio Portfolio 10 July 2024 31 March 2024 Capital Value £129.5m £138.1m* Income £8.97m £9.67m (Rent collected 100%) Running Yield 6.9% 7.0% Number of Properties 32 35 Number of Tenancies 35 38 (Portfolio 100% let) Index-related Income 100% 96% WAULT** 12.3 Years 11.6 Years Sales (since 31 March
Slide 8: New loan – completed 5th July
New loan – completed 5th July • Additional £15 million loan drawn down until March 2033 • 95% fixed at 6.37% and 5% floating – effective interest rate on new loan 6.4% • Average interest rate now 4.5% on £65 million loan total • Average maturity of loan 7.1 years (from 6.9 years) • Loan to value rat
Slide 9: Top 10 properties by capital value
Top 10 properties by capital value 10 July 2024 Property Tenant Sector % of Portfolio by Capital Value Dover Park Resorts Caravan Park 8% Newport Isle of Wight Marks and Spencer Supermarket 7% Rayleigh Marks and Spencer Supermarket 7% Coventry (Crosspoint) Tenpin, Pizza Hut & Bowling 6% Starbucks Ga
Slide 10: Capital Value % by sector weighting
Capital Value % by sector weighting 10 July 2024 Supermarkets - 31% (March 29%) 4% Industrial / Warehouse - 27% (March 28%) 9% 31% Bowling & Health Club - 20% (March 19%) 9% Hotels - 9% (March 9%) Other (Caravan Park & Library) - 9% (March 9%) 20% Pubs - 4% (March 6%) 27%
Slide 11: Capital value % by region
Capital value % by region 10 July 2024 2% 1% South East - 29% (March 30%) North - 25% (March 24%) 8% East Anglia - 16% (March 16%) 8% 29% Midlands - 11% (March 11%) South West - 8% (March 7%) 11% Scotland - 8% (March 7%) London - 2% (March 4%) 16% 25% Wales - 1% (March 1%)
Slide 12: Rent review pattern
Rent review pattern 10 July 2024 100% of income is now index-related 5% Retail Price Index - 84% (26 Tenancies) 11% 5 rent increases since 31 March: Consumer Price Index - 11% +£221,000 (5 Tenancies) +15.2% Fixed Increases - 5% 84% (4 Tenancies)
Slide 13: Lease extension – M&S, Newport
Lease extension – M&S, Newport • Lease extended by 9 years • Rent reviews changed from annual 1.95% increases to annual RPI-linked rent increases -minimum 1% p.a. and maximum 3% p.a. • Rent reduced by 32% - no longer over-rented
Slide 14: Impact of inflation on annual rental growth over five years
Impact of inflation on annual rental growth over five years 4.2% 4.3% 3.6% 3.7% 3.1% 2.6% CPI 0% CPI 1% CPI 2% CPI 3% CPI 4% CPI 5% Annual portfolio rental income growth assuming cpi increases 0% - 5% p.a.
Slide 15: Contracted income by tenant %
Contracted income by tenant % 10 July 2024 Marks & Spencer 16% Ten Entertainment Group 11% Premier Inn 8% Government & LA's 8% Sainsbury's 7% Top 5 Tenants / 14 Tenancies = 50% Income Park Resorts 7% Virgin Active 6% Co-operative Group 6% Hollywood Bowl 6% Kier Group 5% MKM Building Supplies 4% Wint
Slide 16: Energy performance certificates
Energy performance certificates EPCs - 100% A-C 10 July 2024 A 14% B 37% C 49%
Slide 17: Annual dividend growth 6.6% P.A.
Annual dividend growth 6.6% P.A. 37-year track record of dividend increases (RPI 3.7% P.A.) One of AIC’s “Dividend Heroes” As at March 2024
Slide 18: VIP's safe, long let indexed property portfolio
VIP’s safe, long let indexed property portfolio well placed for income and capital growth Firmly on the right side of structural change – no offices or high street retail 100% let and 100% income producing Strong tenants on long index-linked leases with sustainable rents and buildings in prosperous
Slide 19: New Purchases
New Purchases Brentwood (Health Club) Ashford (Bowling) Peterborough (Bowling) £11.85 million - net purchase yield 7.8% now 8.7%
Slide 20: Market update
Market update
Slide 21: Undervalued UK Index-Related Income
Undervalued UK Index-Related Income Sector June 2022 to December 2023 June 2024 to June 2024 Retail -19% +1% Office -29% -3% Industrial -25% +1% Alternatives -16% 0% All Property -23% 0% Market down by 23% from peak – now stabilised. Offices have further to fall – but VIP’s sectors bottoming out. VI
Slide 22: Disclaimer
Disclaimer • This document has been prepared by OLIM Property Limited solely for presentation to the Value and Indexed Property Income Trust PLC Annual General Meeting on 11 July 2024. For the purpose of this disclaimer, ‘Presentation’ shall mean this document and the slides by OLIM Property Limited
Slide 23: Annual General Meeting
VALUE AND INDEXED PROPERTY INCOME TRUST PLC Annual General Meeting 11 July 2024 Long, strong, indexed property income
Value and Indexed Property Income Trust — Shareholder Meeting (July 2024) on 6ix