We regularly review the income performance of every property on our platform to ensure that the dividends paid to investors are aligned with the net rental profits generated by the investment. Maintaining a strong balance sheet with adequate provisions for potential future costs, enables us to safeguard investors’ interests and maximise long term performance.
As a result of the latest review, we have identified 19 properties where the dividend payment has not remained consistent with the net rental income. The dividend will be adjusted accordingly to reflect the current performance of the property.
From 5 May 2019, five will pay a higher dividend and 14 properties will pay a lower dividend. The remaining 88 properties currently paying dividends will remain unchanged.
For each property where there has been a change, we have provided a detailed explanation of the reasons for the change at the top of the “Investment Case” section for that property.
Please note that the dividends listed here are based on the Latest Valuation of each property, based on independent surveyors valuation at 31 March 2019, which you can see in each property’s “Financials” section.
The overall impact across the portfolio is that the weighted average dividend yield has decreased from 4.20% to 4.07%.
The changes in dividends for the five properties that will pay a higher dividend are as follows:
| Property address | Current dividend | Change (%) | New dividend |
|---|---|---|---|
| 5 Scholars Way, Romford | 2.64% | 0.50% | 3.14% |
| 80 Manordene Rd, Thamesmead | 2.92% | 0.25% | 3.17% |
| Marco Island, Nottingham | 4.02% | 0.75% | 4.77% |
| Cotton Avenue, Acton | 2.67% | 0.25% | 2.92% |
| 22 Amhurst Walk, Thamesmead | 2.66% | 0.50% | 3.16% |
The changes in dividends for the 14 properties that will pay a lower dividend are as follows:
| Property address | Current dividend | Change (%) | New dividend |
|---|---|---|---|
| Spencer Parade, Northampton | 4.63% | (1.25%) | 3.38% |
| Tower Mint Flats 1,5,6,7 | 2.23% | (1.00%) | 1.23% |
| Flat 2, Tower Mint | 2.74% | (0.75%) | 1.99% |
| Flat 4, Tower Mint | 2.74% | (0.75%) | 1.99% |
| Flat 3, Tower Mint | 2.74% | (0.75%) | 1.99% |
| Molyneux Court, Liverpool | 4.45% | (1.00%) | 3.45% |
| St. Catherines Mews, Lincoln | 4.74% | (0.75%) | 3.99% |
| Carlisle Mews, Gainsborough | 4.84% | (1.25%) | 3.59% |
| Thornwood, Eastbourne | 2.83% | (1.00%) | 1.83% |
| Stackyard Farm, Scarborough | 3.73% | (1.00%) | 2.73% |
| Vista Towers, Stevenage | 4.83% | (1.00%) | 3.83% |
| Woodside Rd, Tonbridge | 2.38% | (1.00%) | 1.38% |
| Bridgewater St, Manchester | 3.43% | (0.75%) | 2.68% |
| Stafford Vere, Lincolnshire | 3.35% | (1.00%) | 2.35% |
Why are the dividend yields changing?
As a large scale, professional asset manager, Property Partner aims to deliver strong income returns for investors from the properties on our platform. We treat our tenants fairly, and manage properties to minimise voids and reduce longer term repair and refurbishment costs. This enables us to maximise rental profit and the resulting dividend we are able to pay investors over time.
Each of our investment properties is held within a Special Purpose Vehicle (SPV), which is a UK limited company. The costs of managing the property and servicing the mortgage are covered by the rental income it generates, and the profit is paid out to shareholders in the form of a monthly dividend.
Both rental income and operating costs fluctuate over time due to a multitude of factors, and the profits will change accordingly. For example, higher than expected levels of vacancy would reduce rental profit, while increased demand from tenants in a local area could facilitate greater than expected rental increases.
To go back to the quarterly close period update click here.
Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however, the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Past performance is not a reliable indicator of future performance. Forecasts, if stated, are not a reliable indicator of future performance. Interest and capital returned may be lower than expected. Gross rent, dividends, and capital growth may be lower than estimated. 5 yearly exit protection, exit on platform, exit in line with a specific investment case or fund strategy, subject to price and demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Financial promotion by London House Exchange Limited (No. 8820870); authorised and regulated by the Financial Conduct Authority (No. 613499). See Key Risks for further information.