VALUE AND INDEXED PROPERTY INCOME TRUST PLC

LEI: 213800CU1PIC7GAER820

PUBLICATION OF CIRCULAR IN RELATION TO RECOMMENDED PROPOSALS TO ENTER THE UK REIT REGIME AND AMEND THE COMPANY'S ARTICLES OF ASSOCIATION

                                                                                                                   25 February 2025

The Company announces that it has today published a circular (the "Circular") in connection with the Board's recommended proposals for the Company to enter the UK REIT regime and make the necessary amendments to its articles of association (the "Proposals").

The Board believes that it is the opportune time and will be in the best interests of the Company and its Shareholders as a whole to change the Company's tax status from an Investment Trust to a Real Estate Investment Trust (REIT).  The Board believes this should allow the Company to continue increasing the dividend at least in line with inflation and improve the marketability and liquidity of the Company's Shares.  

The Proposals are conditional on Shareholders approving the amendments to the Company's articles of association.  The Circular contains further details of the Proposals and a notice of general meeting of the Company (the "General Meeting"). The General Meeting will be held at 12.30 p.m. on 20 March 2025 at the offices of Dickson Minto LLP, 16 Charlotte Square, Edinburgh, EH2 4DF.

The main tax advantage of the UK REIT regime is that net rental income from a REIT's property portfolio is exempt from UK income and corporation tax, as are capital gains on the disposal of its rental properties.  In return, a REIT has to distribute at least 90 per cent. of its income profits from its property rental business to shareholders in each accounting period. 

In the event Shareholders approve the Company's conversion to REIT status, its dividends will typically be paid in the form of property income distributions (PIDs).  These PIDs will be taxed in the hands of Shareholders as if they were rental income. The UK REIT regime seeks to treat investors in a REIT as if they held a direct interest in the REIT's property portfolio.  Institutional shareholders and individual shareholders who hold their Shares in an ISA or SIPP should not be impacted by the Company's conversion to REIT status.  Individual Shareholders who do not hold their Shares in an ISA or SIPP will be taxed at higher rates following the REIT conversion.  If you are in any doubt about the action you should take, you should immediately consult an appropriately qualified independent financial adviser.

If Shareholders approve the Proposals, the Company is expected to enter the REIT regime on 1 April 2025 and the Company will not pay any more dividends as an Investment Trust.  The Company's next dividend, 3.4 pence per Share, will be paid as a property income distribution (PID) after the Company has entered the REIT regime.  It will be paid on 25 April 2025 to Shareholders on the register on 28 March 2025. 

The Board will also be recommending a final dividend of 3.6 pence per Share for the financial year ending 31 March 2025, which will also be paid in the form of a PID.  This will be subject to Shareholder approval at the Company's annual general meeting to be held in July 2025.

A copy of the Circular has been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.  The Circular will also be available on the Company's website at https://www.olimproperty.co.uk/value-and-indexed-property-income-trust.html

Defined terms used in this announcement have the meanings given in the Circular unless the context otherwise requires.

Timetable

The timetable for the General Meeting is as follows:

Latest time and date for receipt of Forms of Proxy ...............12.30 p.m. on 18 March 2025

General Meeting.....................................................................12.30 p.m. on 20 March 2025

Expected date of entry to UK REIT regime                                                        1 April 2025

Notes:

All references to time in this document are to UK time. If any of the above times and/or dates change, the revised time(s) and/or

date(s) will be notified to Shareholders by an announcement through a Regulatory Information Service.

For further information please contact:

Important Information

This announcement is released by the Company and the information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Article 7 of the UK version of the EU Market Abuse Regulation (Regulation (EU) No.596/2014) which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement via a Regulatory Information Service, such information is now considered to be in the public domain.