Fund Performance

Total Shareholder Returns (TSR) chart

Measuring the performance of our residential property funds

The underlying performance of the funds is driven by two factors: net rental income generated by the properties in the fund, and changes in the capital value of the properties themselves (as independently assessed on a monthly basis by Allsop LLP)

Drivers of fund performance

Overview

Both funds acquire properties with strong rental prospects and capital appreciation potential, and often at a discount to their independently assessed value. However, each fund exhibits a different balance of rental income and capital growth, reflecting different local market conditions

Rental income vs. capital growth split

Regional Capitals Fund

37% Rental income
63% Capital growth
Rent 37%
Capital growth 63%

London Fund

21% Rental income
79% Capital growth
Rent 21%
Capital growth 79%

Split of earnings are unaudited figures as of 20/03/18. Past performance and forecasts are not a reliable indicator of the future.

Property acquisition discipline

To protect investors in our funds we never acquire a property for more than its independently assessed value at purchase

Read more about our property screening and acquisition process

Total shareholder retuns (TSR)

What this chart shows

The total shareholder returns chart shows returns from both changes in the share price, as well as dividend distributions. (Note: calculation assumes that dividends are reinvested)

Login to your dashboard to view details of your earnings over time

Dividends

Regional Capitals
Q1 2018 (interim) inaugural Announcement date 23 March 2018
Record date 26 March 2018
Amount(amount per share) £0.02
Period covered 22 Sep 2016 – 31 Dec 2017
Q2 2018 (interim) Announcement date 22 June 2018
Record date 25 June 2018
Amount(amount per share) £0.004
Period covered 01 Jan 2018 – 31 Mar 2018
Q3 2018 (interim) Announcement date 5 October 2018
Record date 11 October 2018
Amount(amount per share) £0.004
Period covered 01 Apr 2018 – 30 Jun 2018
London

The London fund is yet to pay its inaugural dividend. It is expected to be paid during 2018, and will cover the period from launch

Share price (excludes dividends)

What this chart shows

The share price chart shows the share price performance of the funds over time. The share price for both funds is updated during each fortnightly investment cycle to reflect earnings over the previous 2 weeks - from rental income, net of property costs, and property value changes.

Why does the share price dip when a dividend is paid?

When a fund declares a dividend, investors in that fund are entitled to receive the declared amount per share owned. This dividend is then either re-invested in the fund or distributed to investors’ bank accounts, as chosen by the investor. The share price of the fund falls by the corresponding dividend amount, reflecting the fact that the fund has paid a dividend per share to investors.

This happened when the Regional Capitals fund announced its first dividend of 2p per share on 23rd March 2018. Dividends will subsequently be paid quarterly

Between dividend declarations shares trade at a level that reflects an entitlement to a future dividend, i.e. the share price includes rental profits accrued by the portfolio during that period. Login to your dashboard to view details of your earnings over time

What share price will I receive when I buy or sell shares?

In normal market conditions, valuation changes and net rental income are reflected in the share price, which is the price incoming/outgoing investors pay/receive for their shares

The share price is based on a calculation of the Net Asset Value of each fund by the Alternative Investment Fund Manager, using an independent valuation of properties and accrued net rental income

As each fund takes on new investment, it expands and purchases new properties. In order to treat customers fairly and not penalise existing shareholders, purchase costs are recognised over the course of the first five years of owning the property, so that it is offset against the income generated

If there is ever a shortage of buyers for your shares, investors have the option of waiting for a buyer in order to sell at the prevailing share price, or offering shares at a discount to incentivise buyers

Note on performance figures

Past performance and forecasts are not reliable indicators of future performance. Net yields represent an estimated 5-year average rental yield, net of property costs, fees and taxes. Actual yield performance may be higher or lower. Tax rules apply and may change in future.

Fund performance shown net of Bricklane.com’s annual management fee, but gross of transaction fee. Bricklane.com’s standard transaction fee is 2%.

Over the course of a three year investment, the standard transaction fee would have an annualised impact of c. -0.7%. The full transaction fee is charged investment - these figures are shown for illustrative purposes only. Impact would be lower for longer-term investments, and higher for shorter term ones.

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Capital at risk

The value of your investment can go down as well as up. If you want to sell shares, there is no guarantee that you will be able to find a buyer for your shares within a reasonable timeframe at a price that is acceptable to you. The REITs invest in residential property, which are not highly liquid assets. Rental yields and dividends may be lower than estimated.

Tax rules and allowances depend on individual circumstances and may change in the future. If you are unsure about whether investment is right for you, you should seek independent advice before investing, including tax advice.