Long, strong, indexed property income
VALUE AND INDEXED PROPERTY INCOME TRUST PLC
Annual report and accounts 2024
2
Value and Indexed Property Income Trust PLC
• Annual Report and Financial Statements 2024
100
%
96
%
rent index-related
71
%
RPI-linked
Rent collection
Leases
Debt
Total property return
Rent indexation
EPCs
Property yield
Annual dividend growth
Long, strong, indexed property income
97
%
EPCs rated A-C
11.6 years
weighted average unexpired
lease length to break
35
properties -
38
leases
3.9
%
average rate
6.6
%
P.A over 37 years
(RPI 3.7
%
)
-1.8
%
over 1 year
(Index -1.1%)
+3.4
%
P.A. over 5 years
(Index +0.7% P.A.)
6.6
%
net initial property yield
6.9
years maturity
35
%
loan to value
55%
income from top five tenants
+7.1
%
P.A. over 10 years
(Index +5.0% P.A.)
3
Value and Indexed Property Income Trust PLC
• Annual Report and Financial Statements 2024
Value and Indexed Property Income Trust PLC (VIP or the Company) 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 956% against the Retail Price
Index rise of 281%. Three interim dividends
of 3.2p each were paid on 27 October 2023,
26 January 2024 and 26 April 2024. The
targeted total dividend for the full year is 13.2p
(+2.3%). 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 2024
was 7.7% (2023: 6.3%).
VIP’s property portfolio delivered a total return
of -1.8% over the year against -1.1% for the MSCI
UK Quarterly Property Index. Over the past five
years, the VIP property return was 3.4% p.a.
(Index 0.7% p.a.), over 10 years it was 7.1% p.a.
(Index 5.0% p.a.) and over 37 years it was 11.0%
p.a. (Index 7.7% p.a.).
Borrowings
31 March 2024
31 March 2023
31 March 2022
Average interest rate
3.9%
3.9%
5.6%
Total loans (loan to value)
£50 million (35%)
£50 million (32%)
£57 million (30%)
Loan maturity
6.9 years
7.9 years
6.2 years
VIP property portfolio performance record over 37 years to 31 March 2024
-2
0
2
4
6
8
10
12
1 year
3 years
5 years
10 years
20 years
37 years
Total Annualised Returns %
VIP property
RPI
MSCI UK Quarterly Property Index
-1.8
%
-1.1
%
4.3
%
2.9
%
1.0
%
8.9
%
3.4
%
0.7
%
6.1
%
7.1
%
4.3
%
5.0
%
3.7
%
8.1
%
5.5
%
11.0
%
7.7
%
3.7
%
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 two years, as the table below shows, the average interest rate on VIP’s borrowings
was cut from 5.6% to 3.9%, the loan to value ratio rose from 30% to 35% and the average loan
length rose from 6.2 years to 6.9 years.
4
Value and Indexed Property Income Trust PLC
• Annual Report and Financial Statements 2024
Financial calendar
27 October 2023
First quarterly dividend of 3.2p per share for the year ended 31 March 2024
16 November 2023
Announcement of Half-Yearly Financial Report for the six months to 30 September 2023
26 January 2024
Second quarterly dividend of 3.2p per share for the year ended 31 March 2024
26 April 2024
Third quarterly dividend of 3.2p per share for the year ended 31 March 2024
12 June 2024
Announcement of Annual Financial Report for the year ended 31 March 2024
11 July 2024
Annual General Meeting, Edinburgh (12.30pm)
26 July 2024
Final dividend of 3.6p per share payable for the year ended 31 March 2024
25 October 2024
First quarterly dividend payable for the year ending 31 March 2025
November 2024
Announcement of Half-Yearly Financial Report for the six months ending 30 September 2024
31 January 2025
Second quarterly dividend payable for the year ending 31 March 2025
Over the year, VIP strengthened and upgraded its portfolio by selling seven riskier properties,
the last four Stonegate pubs, two short let petrol stations and an overrented convenience store,
for £13.25 million, above valuation and at a net yield of 7.5%. The sales proceeds were invested in
three long-let leisure properties in East Anglia and the South-East at a net yield of 7.8%, rising to
8.5% in May 2024. All have annual RPI-related rent increases.
The intended retail investor in the Company is a retail investor who is seeking long-term (at
least five 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. The Company
changed its investment policy and its name from Value and Income Trust PLC in January 2021.
5
Value and Indexed Property Income Trust PLC
• Annual Report and Financial Statements 2024
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
86
Group Statement of Cashflows
88
Company Statement of Cashflows
89
Group and Company Statement of Changes in Equity
90
Notes to the Financial Statements
91
Additional Information
Property record over 37 years
124
List of properties
126
Alternative Investment Fund Managers Directive
128
How to Invest in Value and Indexed Property Income Trust PLC
130
Glossary
131
Notice of Annual General Meeting
132
Contact Information
137