• Assets under management increased by £14.6m in the quarter, reaching £115m and representing an increase of 71% over 12 months
• Average dividend yield of new properties funded in Q1 is 5.9%, our strongest ever quarter
• Latest revaluations imply an annualised total return of 7.1% across the platform since launch
• If we were to realise the discounts achieved at purchase, the annualised total return would increase to 12.8%
• Total return over the past 12-months is 5.4% across the platform
• Regional properties outperformed London with an annualised total return of 8.1% across the platform since launch
Please note: past performance is not a reliable indicator of future performance.
Assets under management increased by £14.6m in the quarter, reaching £115m and representing an increase of 71% over 12 months
Property Partner funded 7 new listings during the quarter, increasing AUM at an average rate of £1.1 million per week, bringing the total value of properties on the platform to £115 million, an increase of 71% in the last 12 months. Properties that completed funding during the quarter included three more purpose-built student accommodation properties (PBSA) at Bangor, Wales, Fairchild House, Southampton and College Mews, Lincoln. The quarter also saw the funding of our first commercial property proposition, a Sainsbury’s Local in Cubbington, Leamington Spa.
The portfolio now includes 103 separate assets for investors to select from, which contain 819 individual units, flats and houses.
Average dividend yield of new properties funded in Q1 is 5.9%, our strongest ever quarter
High-yielding PBSA blocks have driven 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. Over the last 12 months, the new properties funded on the platform have had an average dividend yield of 5.0%, compared to 4.0% 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.
Latest revaluations imply an annualised total return of 7.1% across the platform since launch
Every quarter, an independent, RICS accredited surveyor re-values every property on the Property Partner platform. Of the 95 properties that were revalued at the end of March 2018, 12 saw an increase compared to their December level, 65 remained unchanged and 18 experienced declines. The result was an aggregate decrease of 0.2% in the underlying value of properties in the portfolio over the quarter.
Since purchase, properties in the portfolio have increased in value by 7.1%, with a weighted average time on platform of just over 19 months.
The revaluations have produced an average annualised total return of 7.1% across all properties since platform launch, as shown below. This is made up of 3.5% from capital growth and 3.6% from dividend yield, denoted by the blue bars in the chart below.
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 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.
If we were to realise the discounts achieved at purchase, the annualised total return would increase to 12.8%
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 58 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 5.4%
The bars in blue below show that properties on the platform have, on average, after all fees, delivered an annual total return of 5.4% over the 12 months to 31 March 2018, including a dividend yield of 3.5% and 1.9% in capital value growth.
N.B. The figures presented above are rounded to 1 decimal place. Dividend plus capital may not sum up to the total.
Regional properties outperformed London with an annualised total return of 8.1%
The chart below displays the performance of London properties against those situated outside of the capital, on an annualised basis from the launch of the first property in each area, corresponding to the annualised total return of 7.1% across the platform.
The Rest of the UK has performed strongest with annualised total return of 8.1%, consisting of 5.7% capital growth and 4.0% income return. In contrast, London has seen a lower total return, at 5.9%, with capital growth of 3.2% and an income return of 2.8%, reflecting wider market conditions as house price growth has slowed in the capital and parts of the South East of the country, particularly relative to the midlands and North West.
N.B. The figures presented above are rounded to 1 decimal place. Dividend plus capital may not sum up to the total.
Since the EU referendum in June 2016, Property Partner has focused our acquisition strategy on higher yielding properties in the UK regions, with 40 out of 43 new residential listings located outside of London during this period. Prior to this point we focused on London to take advantage of strong market conditions at the time. As at the end of March 2018, the 44 London properties on our platform have a total value of £31.5m, representing 33% of the value all properties contributing to this performance analysis.
The graph below denotes the regional return profile based on 12-month performance at quarter end, corresponding with the total return of 5.4% across the platform at the end of Q1 2018. UK regions outperformed the capital in the 12-months to the end of March 2018, with an income return of 4.1% compared to 2.7%, capital growth of 3.0% versus 0.6% and a total return of 7.1% against 3.2%.
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.
Important Notice: 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. Gross rent, dividends and capital growth may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & 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. Please read Key Risks before investing.
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