• Property values increased by an average of 0.8% in the quarter ending 30 June 2017
• Assets under management have increased to £73 million, up 58% in the last 12 months
• Latest revaluations imply a current estimated total return of 8.4%
• Average dividend yield of new properties listed in Q2 was 3.9%
• Investments have grown in value by 32% since launch in January 2015
• Intended method of ultimate disposal is now disclosed for each property
Every quarter, an independent, RICS accredited surveyor re-values every property on the Property Partner platform. Today, Property Partner announces those revaluations to 30 June 2017. Of the 71 properties that were revalued, 33 saw an increase compared to their March level and 38 remained unchanged. The result was an overall increase in underlying property value of 0.8% for the quarter.
Latest revaluations imply a current estimated total return of 8.4%
Across the entire portfolio, the revaluations have produced a current estimated total return of 8.4%, a slight decline from 8.6% at 31 March 2017.
Total return is expressed as an annual percentage and comprises the Capital Growth, being the annual growth in the value of investments as a percentage of the initial capital invested, and the annual Dividend Yield which is paid monthly to investors. Revaluations of individual properties are reflected on the Properties section of our website and details of the above total return calculation can be found here.
Assets under management have increased to £73 million, up 58% in the last 12 months
Property Partner continued to offer regular new property listings during the quarter, bringing the total value of fully funded properties to £73.0 million, an increase of 58% in the last 12 months. The portfolio now includes 80 separate assets for investors to select from, which contain over 400 individual flats and houses.
New properties listed in Q2 had an average dividend yield of 3.9%
The properties on our platform are handpicked by our in-house team of experienced residential property professionals. Every property we list has passed our strict diligence procedures and meets strong investment criteria. We listen to investor feedback and observe demand trends for different types of property on our secondary market. As such, since last summer we have recognised the appeal of assets with a high dividend yield and have responded by listing new properties with significantly higher yields in the last year – an average of 3.9%, compared with 3.1% in the previous 18 months.
Property Partner investments have grown in value by 32% since launch in January 2015
Based on independent, RICS accredited revaluations, underlying property values within the Property Partner portfolio have increased in value by 14.1% since January 2015. This compares to a 10.2% increase in the Nationwide House Price Index over the same period.
If a Property Partner investor had acquired 1% of every property ever listed on our platform, the 14.1% increase in underlying property revaluations would have delivered a 32.3% increase in the value of their investment. This uplift is explained by three factors (i) the impact of the mortgage gearing and (ii) discounts achieved at purchase on properties acquired prior to June 2016, partially offset by (iii) the impact of accounting for property acquisition costs. Further details of these changes in valuation for each individual property can be found here.
Method of ultimate disposal is now disclosed for each property
Property Partner provides a platform where anyone can invest in high-quality properties and build a diversified portfolio at the click of a button. We aim to deliver a return which reflects the value of the underlying asset through the sale of shares on our resale market. To date, we have returned more than £14 million of capital to investors who have chosen to exit an investment and crystallise a total return.
In addition, the “back-stop” of our five-year exit mechanic provides the opportunity for investors to realise the current market price of the underlying property.
In response to investor feedback and to enhance the information on which to base the assessment of a property’s value, we now disclose our intended method of disposal for every property in our portfolio. This states simply whether we would sell the investment as a single block to another investor or sell the units individually on the open market. You’ll find this information in the Investment Case for each property, as well as a list of the disposal method for every property here.
Our property team determine the most suitable method of disposal for each property, as that which will return the maximum overall value for our investors. They consider current demand and longer-term trends in the local market, with criteria including:
- The difference between the aggregate value of the individual units and their value as a single investment block, based on independent surveyors’ valuations
- The number of units in our holding and within the entire block
- Whether our ownership is on a freehold or leasehold basis
- The additional time it could take to sell all the units individually and the impact on dividend yield during this period
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 email@example.com – we’d love to hear from you.