Revaluation: Property Performance in Q3, 2017


• Assets under management increase by more than £1 million per week to £86 million, our biggest quarter for new property listings
• Average dividend yield of new properties funded in Q3 is 4.3%, our strongest ever quarter
• Latest revaluations imply an annualised total return of 7.7% across the platform since launch
• Total return over the past 12 months is 7.5%
• After realising the discounts achieved at purchase, the annual total return is 11.7%
• To date, we have never underpaid a dividend

Assets under management increase by more than £1 million per week to £86 million, our biggest quarter for new property listings

Property Partner offered 11 new listings during the quarter, increasing AUM at an average rate of more than £1 million per week, bringing the total value of properties on the platform to £86 million, an increase of 78% in the last 12 months. This quarter represents a record for new assets coming to the platform, with £13 million of properties fully funding, including our first ever purpose-built student accommodation property (PBSA) at Verney Street in Exeter, our biggest ever capital raise.

The portfolio now includes 93 separate assets for investors to select from, which contain over 500 individual flats and houses.

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Average dividend yield of new properties funded in Q3 is 4.3%, our strongest ever quarter

The impact of our first PBSA block, Verney Street in Exeter, with a dividend yield of 6.7%, has fed into the significant increase in the average yield to 4.3% across new properties funded during the last quarter. Our property team are working hard to source additional PBSA properties for launch in the coming months. Since summer 2016, the new properties funded on platform have had an average dividend yield of 4.0%, compared to 3.5% 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.

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Latest revaluations imply an annualised total return of 7.7% across the platform since launch

Every quarter, an independent, RICS accredited surveyor re-values every property on the Property Partner platform. Of the 78 properties that were revalued at the end of September 2017, 34 saw an increase compared to their June level, 36 remained unchanged, with 8 experiencing declines – though these are still valued above their original purchase price. The result was an overall increase of 0.3% in the underlying value of properties in the portfolio over the quarter.

The revaluations have produced an average annualised total return of 7.7%, across all properties since platform launch, as shown below. This is made up of 4.3% from capital growth and 3.4% from dividend yield.

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N.B. The figures presented above are rounded to 1 decimal place. Dividend plus capital 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, exclusive of any promotions, 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.

The total return over the past 12 months is 7.5%

The bars in blue below show that properties on the platform have, on average, after all fees, delivered an annual total return of 7.5% over the 12 months to 30th September 2017, including a dividend yield of 3.1% and 4.4% in capital value growth.

After realising the discounts achieved at purchase, the annual total return is 11.7%

The green bars denote the annual total return at quarter end, 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 50 such assets on the platform, explaining the increase in capital performance if all discounts achieved at purchase were to be realised.

This analysis includes assets that have at least 12 months of trading history on platform, at each quarter end, which represents 67% of the total value of investments on the platform as at September 2017.

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

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.