Introducing the BondMason Listed Landlord Index (BLLI)

Monitoring the share price performance of listed landlords active in UK residential property.

The future of buy-to-let

Tracking listed landlords of UK residential property

What is the BLLI?

The BondMason Listed Landlord Index (BLLI) records the performance of UK's largest listed residential property rental companies.

What's included in BLLI?

The companies included in the BondMason Listed Landlord Index have an aggregate ownership of 200,000+ homes across the UK and a combined market capitalisation in excess of £7bn.

The BondMason Listed Landlord Index is a market-capitalisation weighted portfolio, tracking the share price movements and dividend payouts of listed companies (including investment trusts), which own UK residential property for letting.

Data correct as at April 2019.

Buy-to-let is changing

Regulations and tax are changing the BTL investment landscape

Backing bricks and mortar

For many private investors, buy-to-let investing is the cornerstone of their wealth generation. Tax and regulatory changes are changing the landscape though, making it harder to balance the books on a buy-to-let portfolio.

Enter corporate landlords

Many companies are filling the gap left by smaller private landlords. Building and buying portfolios of properties for letting across the UK.

Old asset class. New approach

Individuals can now access investment returns from the buy-to-let market by investing in listed corporate landlords.

Comparing performance

BLLI enables landlords to compare their properties against the performance of listed companies in this sector.

INVESTMENT ANALYSIS

Performance Data

Listed landlords of UK residential property have achieved strong investment returns, but private landlords are seeing their returns decline, driven by tax changes and a slow down in the property market.

Corporate Listed Landlords vs Private Landlords

BondMason Listed Landlord Index and BondMason Private Landlord Index data set is not available for commercial use. BondMason Listed Landlord Index and the BondMason Private Landlord Index data must not be used in financial instruments traded on trading venues or via systematic internalisers in the EU; mortgage or consumer credit contracts, or investment funds.

Summary performance over three years (2016-2019)

House prices have grown by total of +6.0% over the past three years

Information based on the Nationwide house price index for the period from March 2016 to 2019.

The average private landlord has gained a total post-tax return of +16.9% over the last 3 years.

From 1 April 2016 to 1 April 2019 – source BondMason Private Landlord Index.

BLLI constituents have seen a total return of +37.7% over three years.

The BondMason Listed Landlord Index (BLLI), comprises of Britain’s biggest listed residential property companies.

Latest monthly data and press releases

BondMason Listed Landlord Index Press Release - 11th July 2019

The BondMason Listed Landlord Index showed a small reduction in June, but listed landlords have still achieved a positive annual performance with an increase over the past 12 months

BondMason Listed Landlord Index Press Release - 25th June 2019

Buy-to-let market remains tough for smaller private landlords; annual investment performance for listed corporate landlords has been resilient

BondMason BRIX Press Release - 31st May 2019

Many buy-to-let landlords made a loss last year while growing tax hit adds to their woes, while corporate landlords continue to deliver 10%+ returns for investors

WHAT IS INCLUDED IN BLLI

Qualification Criteria

The BondMason Listed Landlord Index (BLLI) is a performance summary which monitors the UK buy-to-let residential property sector; tracking the share price and dividend performance of carefully selected listed operators from a review of 300+ listed companies (including investment trusts).

BLLI is a market-capitalisation weighted index of listed companies that own and maintain buy-to-let property portfolios (criteria set out below). Performance is measured by aggregating and share price performance including dividend payments.

To be included in BLLI, companies must meet all of the criteria:

Minimum of 70% of balance sheet invested in UK;

Property ownership must be for rental purposes; e.g. house builders such as Persimmon PLC are excluded;

Rental is for primary residence purposes; e.g not holiday homes or hotels; or operations which require home-based staff, such as nursing homes;

Listed in the UK, LSE or AIM, and with an active quote;

Minimum market capitalisation of £50M;

Shares quoted in GBP;

Can be a company (including investment trusts); and

Minimum of 70% of balance sheet invested in residential property

As at 1 April 2019, the companies that qualified for BLLI have a total market capitalisation of £7.5bn and own an estimated 200,000+ homes.

The index is monitored quarterly. BLLI is rebalanced annually on 1 April; and immediately following a discounted rights issue by one of the constituents.

Important information

This web page is intended for discussion purposes. Without limitation, this web page does not constitute an offer, an invitation to offer or a recommendation to enter into any transaction. Nothing in this web page shall be construed as advice. Please contact your Financial Adviser for guidance. The information and opinions it contains have been compiled or arrived at from sources believed to be reliable at the time and are given in good faith, no representation is made as to their accuracy, completeness or correctness. Any opinion expressed, whether in general or both on the performance of individual securities and in a wider economic context, represents the views of BondMason at the time of preparation. They are subject to change. Past Performance is not a guide to future performance. Residential property values are affected by factors such as interest rates, economic growth, fluctuations in property yields and tenant default.

The BondMason Listed Landlord Index and the BondMason Private Landlord Index may not be used for commercial purposes including as a reference for: a) determining the interest payable, or other sums due, under loan agreements or other contracts relating to investments b) determining the price at which investments may be bought or sold or the value of investments or c) measuring the performance of investments.

Persons seeking to place reliance on the BondMason Listed Landlord Index or the BondMason Private Landlord Index for any purpose whatsoever do so at their own risk and should be aware that various factors, including external factors beyond our control might necessitate material changes to the BondMason Listed Landlord Index or the BondMason Private Landlord Index. We reserve the right to vary our methodology and edit or discontinue the BondMason Listed Landlord Index or the BondMason Private Landlord Index at any time.

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