Property Partner has raised its dividends after seeing strong operating performance within its portfolio, three months after it was acquired by Better.
The property investment platform will cut its assets under management (AUM) fee from one per cent to 0.7 per cent per annum, effective from 1 January 2022 and as a result dividends will increase by at least 0.3 per cent for all dividend-paying properties, effective from 5 January next year.
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Property Partner said that within its property portfolio, the past three months of operating performance have delivered strong returns.
The company said that it plans to significantly increase the average dividend yield on the portfolio from 2.4 per cent to 3.2 per cent per annum.
Overall, the net cash position of the portfolio is a surplus of 0.5 per cent of property value, up from 0.2 per cent at 30 September 2021, representing a continued strengthening of the properties’ balance sheets.
In total, 63 of 74 properties where shareholders vote to sell at the five-year anniversary process, and no dividend is paid, are now paying dividends, with an average yield of 3.7 per cent per annum.
And across the entire portfolio, including those properties not paying dividends, the average yield has increased from 2.4 per cent to 3.2 per cent per annum. Furthermore, 17 properties will re-commence paying a monthly dividend.
Due to the AUM fee reduction, seven properties will increase their monthly dividend over and above the 0.3 per cent per annum increase, and 41 additional properties will increase their monthly dividend by 0.3 per cent per annum.
In 2021 there were 14 unit sales completed, eight are currently under offer, four are on the market and approximately eight units are due to go on the market in January 2022.
Of the 16 development loans that Property Partner’s clients have funded to date, seven have been repaid in full with interest.
“We remain committed to reducing client fees and improving client returns,” Property Partner said in a blog on its website.
Since acquiring Property Partner in September, Better has been investing heavily into the business, resulting in the AUM fee reduction and huge 2022 growth plans.
In the fourth quarter, for the first time in a number of years, Property Partner has recruited new members to its team and is in the process of hiring more.