REVALUATION: PROPERTY PERFORMANCE IN Q4, 2017

• Assets under management up by 77% for the year, to £102m
• AUM increased by £15.7m in the period, surpassing last quarter’s record (Q3: £13.3m)
• Average dividend yield of new properties funded in Q4 is 5.3%, our strongest ever quarter
• Latest revaluations imply an annualised total return of 7.2% across the platform since launch
• After realising discounts secured at purchase, the annualised total return increases to 13.6%
• Total return over the past 12 months is 7.2%

Assets under management up by 77% for the year and increased by £15.7m in the quarter to £102 million
Property Partner offered 6 new listings during the quarter, increasing AUM at an average rate of £1.2 million per week, bringing the total value of properties on the platform to £102 million, an increase of 77% in the last 12 months. This quarter represents a record for new assets coming to the platform, with £15.5 million of properties fully funding, including two purpose built student accommodation properties (PBSA) at Burns Street, Leicester and Pitt Street, Newcastle, our biggest ever capital raise and a record property crowdfund in the UK.
The portfolio now includes 100 separate assets for investors to select from, which contain 746 individual flats and houses.

Assets under management

Average dividend yield of new properties funded in Q4 is 5.3%, our strongest ever quarter
The introduction of PBSA blocks has helped deliver a higher average dividend yield across new properties listed on the platform. Our property team are working hard to source additional PBSA properties for launch in the coming months. Since the beginning of 2017, the new properties funded on platform have had an average dividend yield of 4.5%, compared to 3.7% across all properties since platform launch.

In addition to higher yields, we remain committed to offering regular, high quality, hand-picked property investment opportunities, with sufficient diversity by location and type, to enable investors to quickly build a diversified portfolio.

Weighted average dividend yield

Latest revaluations imply an annualised total return of 7.2% across the platform since launch
Every quarter, an independent, RICS accredited surveyor re-values every property on the Property Partner platform. Of the 87 properties that were revalued at the end of December 2017, 25 saw an increase compared to their September level, 51 remained unchanged, with 11 experiencing declines. The result was an aggregate increase of 0.4% in the underlying value of properties in the portfolio over the quarter.

The revaluations have produced an average annualised total return of 7.2% across all properties since platform launch, as shown below. This is made up of 3.8% capital growth and 3.4% from dividend income, denoted by the blue bars in the chart below.

Annualised total return

N.B. The figures presented above are rounded to 1 decimal place. Capital plus income may not sum up to the total.

Total return is expressed as an annual percentage and comprises the Capital Growth, i.e. the annual growth in the value of investments as a percentage of the initial capital invested, and the annual dividend yield, inclusive of immediate income, but exclusive of any other promotions, which is paid monthly to investors. Revaluations of individual properties are reflected in the properties section of our website and details of the above total return calculation can be found here.

After realising the discounts achieved at purchase, the total return increases to 13.6%
The green bars in the chart above denote the annualised total return at quarter end since platform launch, if latest share values are rebased according to each property’s current valuation at the intended method of sale. This reflects the impact of realising all discounts achieved by purchasing properties at investment value, which we intend to break up and sell as individual units, at vacant possession value. There are 57 such assets on the platform, explaining the increase in capital performance if all discounts achieved at purchase were to be realised.

The total return over the past 12 months is 7.2%
The chart below shows that properties on the platform have, on average, after all fees, delivered a total return of 7.2% over the 12 months to 31 December 2017, including a dividend yield of 3.2% and 4% in capital value growth.
This analysis includes assets that have at least 12 months of trading history on platform, which represented 60% of the total value of investments on the platform at 31 December 2017.

Annual property performance

N.B. The figures presented above are rounded to 1 decimal place. Capital plus income may not sum up to the total.
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We are passionate about transparency and hope this information is helpful as you consider your investment decisions. You may also like to read our Open House series where we share further information about our community, investment performance and measures of activity on our Resale Market each month.

If you have any questions or comments on this article, or anything else, please call us on +44 (0)20 3696 5600 or drop us an email on hello@propertypartner.co – we’d love to hear from you.