Long, strong, indexed property income
VALUE AND INDEXED PROPERTY INCOME TRUST PLC
Annual report and accounts
2023
96%
EPCs rated
A - C
Fully Let
Fully Let
No Voids
100%
rent collection
3.9
%
average rate
7.9
years maturity
33
%
loan to value
12.6
years
weighted average
unexpired lease length
42
leases
96%
rent indexed
6.7
%
P.A
over 36 years
(RPI 3.7%)
-
7.8
%
over 1 year
(Index -13.0%)
5.7
%
P.A.
over 5 years
(Index 2.5% P.A.)
5.8
%
net initial
property yield
Debt
60
%
income
from top 6 tenants
Total property return
Annual dividend growth
Property yield
EPCs
Leases
Rent collection
Rent indexed
Debt
Long, strong, indexed property income
39
properties
3
Value and Indexed Property Income Trust PLC
• Annual Report and Financial Statements 2023
Value and Indexed Property Income Trust PLC (VIP - previously Value and Income Trust PLC)
is an investment trust company listed on the London Stock Exchange. It invests directly in UK
commercial property to deliver long, strong, index-related income. Its performance benchmark
is the MSCI UK Quarterly Property Index, the main benchmark for commercial property
performance. OLIM Property Limited is the Investment Manager.
VIP’s dividend per share has risen every year since 1986 when OLIM’s management began. It
has risen by 932% against the Retail Price Index rise of 265%. A first interim dividend of 3.0p
was paid on 28 October 2022, a second interim dividend of 3.1p was paid on 27 January 2023 and
a third interim dividend of 3.2p was paid on 28 April 2023. The targeted total dividend for the
full year is 12.9p (+2.4%). Our medium term dividend policy is for increases at least in line with
inflation, underpinned by VIP’s index-related property income. The dividend yield at 31 March
2023 was 6.3%.
VIP’s property portfolio delivered a total return of -7.8% over the year against -13.0% for the MSCI
UK Quarterly Property Index. Over the past 5 years the VIP property return was 5.7% p.a. (Index
2.4% p.a.) and over 36 years it was 11.7% p.a. (Index 8.1% p.a.).
SUMMARY
Borrowings
31 March 2023
31 March 2022
Average interest rate
3.9%
5.6%
Total loans (loan to value)
£50 million (33%)
£57 million (31%)
Loan maturity
7.9 years
6.2 years
VIP’s balance sheet and revenue account were significantly strengthened in June 2022 by
repaying the 9.375% 2026 Debenture Stock early, increasing an existing loan at an interest rate of
3.5%, and extending its repayment date from 2031 to 2033.
Over the past year, as the table shows, the average interest rate on VIP’s borrowings fell from 5.6%
to 3.9%, the loan to value ratio rose from 31% to 33% and the average loan length rose from 6.2
years to 7.9 years.
VIP property portfolio performance record over 36 years to 31 March 2023
-15
-12
-9
-6
-3
0
3
6
9
12
15
1 year
3 years
5 years
10 years
20 years
36 years
Total Annualised Returns %
VIP property
RPI
MSCI UK Quarterly Index
-
7.8
%
-
13.0
%
13.5
%
4.9
%
2.6
%
8.0
%
5.7
%
2.4
%
5.7
%
8.7
%
6.9
%
4.1
%
9.3
%
6.9
%
3.7
%
11.7
%
8.1
%
3.7
%
4
Value and Indexed Property Income Trust PLC
• Annual Report and Financial Statements 2023
Financial calendar
28 October 2022
First quarterly dividend of 3.0p per share for the year ended 31 March 2023
18 November 2022
Announcement of Half-Yearly Financial Report for the six months to 30 September 2022
27 January 2023
Second quarterly dividend of 3.1p per share for the year ended 31 March 2023
28 April 2023
Third quarterly dividend of 3.2p per share for the year ended 31 March 2023
26 June 2023
Announcement of Annual Financial Report for the year ended 31 March 2023
2 August 2023
Annual General Meeting, London (12.30pm)
4 August 2023
Final dividend of 3.6p per share payable for the year ended 31 March 2023
27 October 2023
First quarterly dividend payable for the year ending 31 March 2024
November 2023
Announcement of Half-Yearly Financial Report for the six months ending 30 September 2023
26 January 2024
Second quarterly dividend payable for the year ending 31 March 2024
Over the year, VIP completed its transition to a direct property investment trust, with timely and
profitable sales of its remaining property shares (including the industrial REITs at a premium to
net asset value). VIP reinvested in an RPI-linked M&S Simply Food supermarket at Rayleigh in
Essex, a long let bowling investment in Coventry with RPI-linked and fixed increase leases, and
in October 2022 completed the new CPI-linked Premier Inn development at Alnwick. Six smaller
overrented property sales completed in line with valuation.
31 March 2023
31 March 2022
Portfolio transition
£m
%
£m
%
UK property
150.6
98.5
155.8
83.0
Cash
2.3
1.5
5.2
2.7
UK equities
–
–
26.9
14.3
152.9
100.0
187.9
100.0
The intended retail investor in the Company is a retail investor who is seeking long-term (at least
5 years) real growth in dividends and capital value from investing in directly held UK commercial
property, plus cash or near cash securities, pending re-investment.
5
Value and Indexed Property Income Trust PLC
• Annual Report and Financial Statements 2023
CONTENTS
Strategic Report
Chairman’s Statement
8
Manager’s Report
10
Business Review
32
Governance Report
Directors’ Details
44
Directors’ Report
45
Directors’ Remuneration Report
54
Statement of Corporate Governance
58
Statement of Directors’ Responsibilities
66
Report of the Audit and Management Engagement Committee
67
Independent Auditor’s Report
71
Financial Statements
Group Statement of Comprehensive Income
82
Company Statement of Comprehensive Income
83
Group Statement of Financial Position
84
Company Statement of Financial Position
85
Group Statement of Cashflows
86
Company Statement of Cashflows
87
Statement of Changes in Equity
88
Notes to the Financial Statements
89
Additional Information
Property record over 36 years
116
List of properties
118
Alternative Investment Fund Managers Directive
120
How to Invest in Value and Indexed Property Income Trust PLC
122
Unsolicited Offers for Shares (Boiler Room Scams)
123
Glossary
124
Notice of Annual General Meeting
125
Contact Information
130