Open House: December 2015
Welcome to our Open House series. Every month we open the doors on our data to share information about our community, investment performance and measures of liquidity in our Resale market. The series is born of our commitment to data transparency, and we hope you find it useful.
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Since our January launch, over 5,300 investors have started to build their property portfolio with us.
In that time, investors have invested £17.9m, £14.9m of which is in New Listings, and £3.0m in Resale properties.
Investor portfolio size
Note: Data displayed includes all investors who made an investment before 3rd January 2016.
Our investors have portfolios ranging significantly in size. 12% of investors have invested more than £5,000 and 41% more than £500. Our largest investors have built portfolios of over £500,000 in size. Since investors typically invest regular amounts, those investors that joined Property Partner earlier tend to have invested greater amounts.
Note: Properties in order of when they were fully funded. Data correct at 3rd January 2016.
Investors are coming back again and again, with 68% holding multiple properties with us. New investors represent 6% of all investors across the last 5 properties: 94% of investments in those properties were made by those who had invested with us previously and represent ‘repeat’ business.
Number of properties users have invested in
Note: Includes all investors who made an investment before 3rd January 2016.
38% of investors have invested in over three properties, and 10% have invested in over ten properties. Diversification is important, as it provides some protection against volatility of returns.
We have met – or exceeded – forecast dividend payments on all properties to date.
(Properties highlighted green have exceeded forecasts)
In some cases, we have managed to secure higher rent than originally forecast when the properties were listed on the platform. This will result in higher dividends for investors in these properties.
In some instances, where properties were acquired vacant, it took us longer to find tenants than anticipated. This was often down to ourselves, as we are highly selective with the tenants we allow to rent our properties, so we chose to fund any such gaps ourselves rather than let this impact dividend payments. Whilst we do not guarantee this practice, we anticipate continuing it for the foreseeable future.
Our properties are carefully selected by our property team, who have a huge depth and variety of experience, and are led by one of the UK’s leading property experts. Together they have a grand total of 68 years, 23,300 units and £1.54 billion of experience – and use this to select properties with a view to delivering capital growth as well as rental income. You can read more about our property team here.
All of our properties are independently valued by an RICS qualified Chartered Surveyor at purchase, and also every 3 months thereafter to provide a valuation update for that individual property. In between these quarterly valuations, we use the Land Registry’s House Price Index (HPI) to update valuations. All revaluations occur on the 5th of the month, or the nearest working day thereafter. Bear in mind that the House Price Index (HPI) is not indicative of the individual property, but of the area in general and can be volatile month to month, so the Quarterly Chartered Surveyor valuations are a better guide to the specific property’s value.
Latest Valuation for each property
In grey – HPI based valuations. In black – Quarterly Chartered Surveyor desktop valuations.
The above valuations feed into the Latest Share Valuation for each property, after adjusting for purchase costs and other items, and you can download an Excel tracker of the historic share price movements here. The Excel tracker is updated monthly and will allow you to track the performance of each individual property. This data will be integrated into the platform in the months to come.
The Resale market
Here we share key measures of the Resale market, including time to sell, trading volumes, and a download of trading activity allowing you to perform your own analysis.
Provided they are not priced at a premium to the Latest Share Valuation, the average time to sell shares is 50 hours. So whilst we do not guarantee buyers for shares in the Resale market – ‘reasonably priced’ shares tend to sell quickly. Aside from the resale market, we also have 5 yearly exit protection mechanics, which you can read more about here.
Trading volumes have been meaningful: 22% of the total property portfolio has traded in the Resale market. This figure varies substantially by property, with ‘older’ properties (those funded many months ago) generally seeing more trading volume than more recent properties, since they have had a longer time in which to trade. Our first property has been 110% traded on the Resale market already (i.e. over 1,100,000 of its 1,000,000 shares have traded in the Resale market).
The property-by-property data is below, in order of property launch (with the earliest launched properties at the top of the table):
We have also prepared a full download of Resale trading activity which you can access here. This spreadsheet allows you to review trading by property, including the trade date, trade price and premium to Latest Share Valuation.
Since our January launch, Property Partner has helped over 5,000 investors to build their personal property portfolios. Investor confidence keeps growing, with some users having already invested over £500,000 with us. Our properties have consistently delivered rental incomes at or above forecast, in addition to attractive capital gains.
We have already seen 22% of property shares traded on the Resale market and for our first-funded property more than 110% of the shares have been traded. The length of time taken to sell shares in the Resale market varies according to the price at which shares are offered. For shares that have been offered at a ‘fair price’ (in other words, with no premium to the Latest Share Valuation), the weighted average time to sell in the Resale market has been just 50 hours.
We will continue to share information and data, to give investors like you a clear view on our performance. And for those of you who are not yet investors, we hope that this data will help you make an informed decision as to whether you would like to join us.
And as always, you can view our latest opportunities for investment by clicking below:
If you would like to provide any comments on this article, or offer your time for a call to provide general feedback, please call us on +44 (0)20 3696 5600 or drop us an email on firstname.lastname@example.org
We’d love to speak with you.