Walls & Futures targeting total return of 7-9%
Portfolio outperforms MSCI UK Residential Property Index for second year running
Strong pipeline of projects for 2019
What Walls & Futures REIT does:
The firm aims to generate long-term secure income by addressing the UK’s social housing needs.
As opposed to buying ready-made portfolios, Walls & Futures collaborates with local authorities, charities and housing associations to understand their needs before going out to the market to build new homes or acquire properties for redevelopment.
Walls & Futures does not provide the care, just the homes, which are then taken on by the local authority, housing association or charity to manage.
Through its own development, Walls & Futures can generate a profit, which protects and increases net asset value.
- The firm’s portfolio rose by 8.75% in 2018, outperforming the MSCI UK Residential Property Index, which increased by 5.2% in the period. It marked the second year in a row that the portfolio has outperformed the index.
- In December, the company revealed that it net asset value (NAV) stood at £3.26mln as at the end of September 2018, compared to £3.10mln a year earlier, while NAV per share remained unchanged at 92p.
- Walls & Futures aims to deliver a total return of between 7-9%, made up of the income generated on deals and the higher margins that come from developing its own properties
- The company said its focus for 2019 is to deliver on key partnerships agreed with local authorities last year and
Walls & Futures expects to benefit from an aging population and an estimated shortage of 29,000 supported housing places.
Chief executive Joe McTaggart said: “We feel there’s a strong market there and from that it can generate what we feel to be a good long-term income.”
He said the company has a strong pipeline of projects for 2019 that are expected to deliver “good results”.
McTaggart added that the firm offers investors a way of accessing long-term secure income in what has become and increasing volatile stock market.