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Value & Indexed Property Income Trust PLC on Monday said it has completed its transition to a direct property trust, as it continues to build its property portfolio.
The London-based investment manager for UK commercial properties said that the transition was approved by shareholders in January last year.
Since then, it said it has bought 18 properties with long, index-linked leases for £87 million and sold six properties for £6 million.
Value & Index added that it is continuing to build on its property portfolio and it has just exchanged contracts to buy an M&S Simply Food store in East Anglia for £11 million.
Further, the investment manager said its balance sheet has ‘improved’ since January 2021, with interest rates cut and debt maturities lengthened. The fixed interest rate payable on borrowings, which now totals £50 million, has been cut to 3.8% from 6.7%, and the average debt maturity has been extended to 8.8 years from 4.6 years.
Since March 31, Value & Index said it has repaid its 9.4% 2026 debenture early, at a cost of £26.2 million, and borrowed a further £13 million from an existing lender at a net fixed rate of 4.2% until March 2033.
The company's current loan to value ratio is 29%, it added.
Shares in Value & Indexed were up 0.3% to 253.73 pence each in London on Monday midday.
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