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:
|
Mandy Kelly, Maven Capital Partners
UK LLP
|
Tel: +44
(0) 141 306 7400
|
|
Company Secretary
|
|
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.
