Value & Income (VIN)

[monabri]

At one point the share price was down 11% today which seemed strange when the mkt was more or less unchanged. Is it the dividend risk or property risk being marked down?

[buffetlunch]

I've held these in an income portfolio for a number of years and it basically did its job in terms of providing income and a plodding capital performance. I must say I am concerned about the performance over the past three months which I think is a result of the trust being in the wrong place at the wrong time, a combination of property and high yielding stocks.

[flyer61]

https://www.olim.co.uk/wp-content/uploa ... 20-001.pdf

very difficult to get a read on whether it is cheap at the moment.

[MusingMarket]

Monthly update:

https://www.olim.co.uk/wp-content/uploa ... 20-001.pdf

*UPDATE ON THE RELEASE OF 2020 RESULTS
The 2020 Annual Accounts are in the course of being finalised and will be published
shortly. These will include details of the rescheduled 2020 AGM and the final dividend
which will be paid as soon as possible after shareholder approval at the AGM.

Pretty risible that there hadn't been any communication on the annual results (over six weeks late relative to last year) or dividend payment (which was announced on 5th June 2019 for payment July 26th 2019), still don't know whether the dividend will be "re-based". This should have been communicated in at least the prior month's factsheet even allowing for Covid. Can only assume they were very unsure about income but still shareholders deserved more transparency.

&

COVID-19: Despite the impact of the pandemic we are in close contact with our tenants as
they deal with this crisis. For the March quarter to 24th June - 64% of rents were fully paid
plus 23% on agreed Payment Plans, with 5% granted the March quarter as rent free. The
balance relates to Adelie Foods, Milton Keynes who went in to Administration end of May
2020, however from the June quarter day the unit is now occupied and income producing.

Not as bad as I feared, Mr Market may feel differently.


PS. I don't hold though family members do. Never quite understood borrowing at a blended 7%, thanks to historical high interest debentures to try and get 8.5% on commercial property. This wasn't by design but, thanks long-term reductions in fixed income yields, it's been the outcome.

[Silverstar64]

PS. I don't hold though family members do. Never quite understood borrowing at a blended 7%, thanks to historical high interest debentures to try and get 8.5% on commercial property. This wasn't by design but, thanks long-term reductions in fixed income yields, it's been the outcome.

I have a small holding in VIN and was aware of the borrowing costs issue but there is a repayment due in 2021:

"The property portfolio has been funded for many years by long term fixed rate loans - £20 million of VIT 9³⁄8% Debenture Stock repayable in 2026 and £15 million of VIT 11% Debenture Stock repayable in 2021. Because these Debenture Stocks were issued at a premium, their effective interest cost
averaged 9%, against the 13% p.a. long-term return from VIT’s properties. We borrowed a further £15 million in 2015-2016 at a fixed interest rate of 4.4%, including all costs, also until 2026 and invested the proceeds in properties at a net initial yield of 6.9%. VIT’s combined weighted cost of loan capital is thus 7.6%; this will fall sharply in two years’ time when our original 11% Debenture is repaid, saving £1,650,000 in annual interest
costs, almost 40% of VIT’s present interest payable"

[From the 2019 Annual Accounts]

[MusingMarket]

Value & Income's news releases are like buses! Dividend declared, fourth interim rather than final so it gets paid earlier (still a month late):

As the date for the AGM has yet to be determined and as payment of a final dividend requires the approval of Shareholders at an AGM, in order to avoid any further delay to the payment of the final dividend, the Directors consider it appropriate to declare a fourth interim dividend in respect of the year ending 31 March 2020, of 3.4p per Ordinary Share to be paid on 28 August 2020 to Shareholders on the register at close of business on 31 July 2020.

https://www.londonstockexchange.com/new ... e/14623620