Value And Indexed Proper... Share Discussion Threads

[ygor705] 17/7/2021 08:09

The shift from equities to property now seems to be in full swing here. Loads of cash in the portfolio at March 2021 which is now being steadily dripped into commercial property sector. Secondary property yields have always offered a good return for the nimble footed investor and this is what we are paying our management to be. Recent share buybacks have now ended but the share price looks stable enough at these levels. It may also be possible to get your money out at net asset value (less cost) in 2026. Solid hold for me.

[brucie5] 02/4/2021 10:05

I'm a bit confused. Is this not now VIP?

[ygor705] 02/4/2021 09:40

£15m of high yielding debenture disappeared on Wednesday which probably accounts for some of the large amount of cash being carried by VIN at February report day. This is definitely moving in the direction of being a property play on U.K. second liners. No bad thing in my view but there looks to be a lot of structural work to be done on the portfolio over the coming 12 months.

[ygor705] 02/2/2021 14:54

Mathew Oakeshott ups his stake again. At least he puts his money where his mouth is.

[losos] 18/1/2021 12:10

That link didn't work for me. I'll go to their web site.

[topvest] 22/12/2020 19:03

Name change to "Value and Indexed Property Income Trust PLC".

They seem to have a good niche in Indexed property and have faired much better than most property owners so far.

Q3 100% rent collection. Q4 88% so far with 12% on payment plans.

£4.75m driving test centre acquisition let to the Government looks another good alternative asset deal.

Director buy as well.

[topvest] 22/12/2020 19:00

I think it makes sense to be honest. They have a definite edge in property. Equity investing has been poor with a tendency of buying value traps.

Property update is good for November.

VIT Property Portfolio: Specialises in commercial properties with long, indexrelated income streams to deliver strong, long-term real returns.
VIT Property Portfolio Total Returns: Between 8% and 12% a year over the
past 3, 5, 10, 20 and 33 years and are above the MSCI averages over all these
periods. Over the six months to the end of September the Property Portfolio
gave a Total Return of -1.9%, in line with the MSCI Quarterly Index, after all
costs.
VIT Property Portfolio Value: Most recent external evaluation £72,825,000 as
at 30 September 2020.
Purchases since 30 September 2020: November £4.75million freehold purchase
of a multi-purpose driving test centre in Quedgeley, Gloucester let to H.M.
Government.
Rent Reviews: 7 index-linked reviews completed since March.
All 30 Properties: Let on full repairing and insuring leases (tenants are
responsible for repair, maintenance and outgoings), with upwards only rent
reviews and a weighted average unexpired lease term of 15 years if the
tenants’ break options are exercised.
Contracted Index-related income: 90%.
COVID-19 and Rent Collection: It has been a challenging period for rent
collection in some property sectors, VIT Property benefitted from owning no
shops, retail, warehouses, or shopping centres and by continuing close contact
with all the tenants. 100% of rents were collected for Q3 July-September with
88% of rents collected so far in Q4 October – December and 12% on agreed
Payment Plans.

[sleepy] 17/11/2020 21:06

Well at least you should be smiling!

[topvest] 17/11/2020 20:59

Some very odd price movements in the market today. My best stocks are up strongly whereas the general market is down strongly as are investment vehicles. All very odd indeed. Can't remember seeing such volatility on my own portfolio.

[spectoacc] 17/11/2020 14:52

Oaky taken another 110k I see - not helping the share price today tho.

[spectoacc] 13/11/2020 10:19

Sold the few I still had - may well go higher, have momentum behind them & a recovering market, but now too close to the last NAV for me.

[spectoacc] 12/11/2020 15:56

Oakshott back in the market, at good prices:


Price(s)

Volume(s)


159.50p

10,000


169.044149p

53,976


176.0926p

36,558

[2wild] 10/11/2020 20:41

Lol yes 25% discount.

Sold out today at 180p following near 20% recent rise and 1p spread. Added to MNG on a 10% covered dividend .

[coolen] 09/11/2020 19:22

That's the benefit of being an accountant !

[2wild] 09/11/2020 18:00

Nice 17.5p 11.3% rise today. Excellent 172-172.5p spread for a change. Estimate discount to today's NAV is circa 75%.

[income investor] 07/11/2020 16:56

This company got a mention on the Money Makers weekly investment trust podcast. They seemed to think the board would be busy trying to find another equity manager to replace Olim. They noted Oakshott had a large stake in the company and anticipated further developments! Looks like we have to wait and see but increasing property weighting does not seem to me to be a good way of reducing the discount, notwithstanding the apparently miraculous performance of the property fund here!

[topvest] 07/11/2020 12:55

OLIM Limited had £2m and a £0.2m profit in their last accounts. Net assets are £0.4m.
Why are Albion closing? Maybe they have lost their other mandates due to poor performance.

Obfuscation, after looking it up in the dictionary, is a very good word to describe the disclosures provided by the Value and Income Trust board and their dealings with minority holders.

I will keep on the watch list until we get a bit more clarity or even better value.

Long term I think this could do reasonably well, but I would like some clarity on the Strategy Review.

[spectoacc] 07/11/2020 08:14

Interesting digging, thanks @topvest. Not sure why you're not getting any downticks for those tho, think I must have been harder on Woodford :)

Comments:

1. The bingo hall & short leasehold roadside sales are a superb bit of dealing - hats off to them, I'd have predicted 18% down not 18% up. Small beer, but excellent.

2. Agree re lack of clarity on accounts, but not just that: outright obfuscation.

3. To add to that:
"These three properties were valued at end-September at 1.4% above their total purchase price excluding costs."
Um, so costs aren't relevant? 5% stamp duty at the top end, and 5-6% overall generally the costs figure. So they're 3.6%+ down so far, not 1.4% up. You want to be paying 5% below "valuation" just to account for costs.
What they've said may be strictly correct, but it's misleading. How many know how large a bite the costs take on purchase.

4. The Oakshott shenanigans - we still don't know what's going on/went on, and he's a major shareholder

5. Now add the OLIM shenanigans - since when does a fee-earning equity manager resign. And as you say - what happens next.

6. What are VIN worth as a property co - REITs are on equivalent discounts atm, tho whether VIN would be an LXI or an AIRE is relevant.

[topvest] 06/11/2020 21:11

Overall, there is some value here. If we assume another £10m off the net asset value before things get better on the property side, you are talking a bottom value of c190p. Yield is c7.5% and discount is 15-25% with debt at fair value.

That assumes a flat equity side. There is uncertainty on this side, but anyone has to be better than the current OLIM team who seem to run into value traps far too regularly. Who will they select to take this side of the business on?

[topvest] 06/11/2020 21:00

Impossible to easily reconcile the investment property valuation numbers in the interims and I am a Chartered Accountant of 30 years standing. Very very poor transparency and disclosure on the numbers. Firstly its not clear which numbers include a property revaluation and which don't. Secondly the IFRS 16 adjustment is sometimes included in the quoted number and sometimes not as there is a matching leasehold liability. Thirdly there is no movement note on investment properties. Awful.

Overall though, I think the revaluation deficit was c£3m which is a c4% reduction.

They need to focus on better numbers disclosure. Nowhere near as good as their write-up on the property market which is a good read.

On a more positive front this activity is encouraging:

"Purchases

We invested GBP5.5m plus costs over the six months at a net initial yield of 6.1% in three freehold index-linked Co-op convenience stores in Barton Upon Humber, Cleethorpes and Kirriemuir. All three supermarkets have index-linked leases and a weighted average unexpired lease length of 13 years. These three properties were valued at end-September at 1.4% above their total purchase price excluding costs.

These supermarkets with RPI-linked leases to the undoubted covenant of the Co-operative Group Limited should produce attractive long-term real returns at low risk from an initial yield over 8 points above index-linked gilts, with favourable capped and collared RPI indexation on one and uncapped RPI indexation on two. The Co-op have a 6% market share in food retailing, with a very strong position in local and convenience shopping in over 3,700 stores which have performed exceptionally well during the pandemic. They should have no difficulty in meeting their RPI-linked rental payments on these properties.

Sales

Contracts were exchanged in September and October, with completion fixed for early in 2021, for the sale of two properties, the bingo hall in Manchester and the roadside property in Horsham held on a 36 year lease, for GBP4.75m in total, 18.8% above their GBP4.0m end-September valuation totals."

[topvest] 06/11/2020 20:58

Impossible to easily reconcile the investment property valuation numbers in the interims and I am a Chartered Accountant of 30 years standing. Very very poor transparency and disclosure on the numbers. Firstly its not clear which numbers include a property revaluation and which don't. Secondly the IFRS 16 adjustment is sometimes included in the quoted number and sometimes not as there is a matching leasehold liability. Thirdly there is no movement note on investment properties. Awful.

Overall though I think the revaluation deficit was c£3m which is a 4% reduction.

They need to focus on better numbers disclosure. Nowhere near as good as their write-up on the property market which is a good read.

[topvest] 06/11/2020 20:30

Some further observations. The Sep factsheet is still incorrect:

"VIT Property Portfolio Value: £75,700,000 as at 30 September 2020
(£70,200,000 as at 31 March 2020). Details of the independent revaluation
as at 30 September 2020 and the six months total return will be reported in
the interim report to be released in early November (the revaluation is
incorporated into the September end NAV)."

This was actually the March valuation of £75,687k. The wording is so misleading.