MSCI and Savills lead funding round into Income Analytics
MSCI and Savills lead funding round into Income Analytics
- MSCI and Savills have led a funding round into Income Analytics, a data technology firm that provides investors with proprietary global rental default risk measures on commercial real estate income (the INCANS Scores) at tenant, asset, fund and portfolio levels
- Providing real-time analytics and ratings on income risk in commercial real estate aims to increase transparency, improve operational efficiency and reduce costs for real estate professionals, investors and lenders
- Both Savills and MSCI intend to embed INCANS Score in their solutions
Grosvenor Hill Ventures, the proptech investment subsidiary of UK listed real estate advisory firm Savills, and MSCI (MSCI:NYSE), a leading provider of mission critical decision support tools and services for the global investment community, have led a funding round into Income Analytics.
The data technology firm provides investors with proprietary global rental default risk measures on commercial real estate income (the INCANS Scores) at tenant, asset, fund and portfolios levels.
Savills will adopt Income Analytics’ INCANS product across its valuation, capital markets, agency and investment management teams.
Separately, MSCI has entered into a distribution agreement with Income Analytics and René Veerman, Head of Real Estate, at MSCI, will take a seat on their board of directors.
Both MSCI and Savills have taken undisclosed minority stakes in Income Analytics, which will use the investment to expand its services globally.
Income Analytics already counts among its clients a number of leading UK, Irish and EU based property professionals, institutional investors and lenders.
Income Analytics is a cloud based financial information platform that allows real estate investors, owners and lenders to minimize their probability of rental loss by more accurately identifying their counterparty risk, quantifying the future probability of future tenant failure, monitoring the financial health of their tenants 24/7 and benchmarking/analysing asset and portfolio level exposures through their proprietary INCANS Scores.
Matthew Richardson, Co-Founder and CEO of Income Analytics, said:
“Income Analytics' service helps investors understand the risks associated with a commercial real estate portfolio. Historically, investors into commercial real estate have shown a repeated tendency to anchor to capital returns instead of income returns despite the fact that over time the level, duration and quality of the rental income paid is the most reliable guide to the long-term performance of real estate.
“Everyone is wedded to the idea of the value of the building but very few have any idea about the risk of failure attached to the cash flow in their portfolio outside of the top-10 or so assets. Understanding income risk is crucial for investors, lenders and other real estate professionals if they want to make informed decisions that are driven by data.
“It’s a great vote of confidence in the product that we have developed to date that both MSCI and Savills, which are globally recognised names in property analytics and commercial real estate investment respectively, have backed us as investors and distribution partners, and I look forward to working with them closely as we look to expand our offering globally.”
René Veerman, Head of Real Estate, at MSCI, adds:
“Never has risk management been in more demand by our real-estate investor clients. The ability to better understand the drivers of capital growth and valuation movement across more markets and to link tenancy risks with performance measurement and broader risk metrics will help our clients develop a greater understanding of their portfolios. This transparency can enable them to solve critical investment problems and identify performance and manage risk.
“Through this strategic partnership, MSCI and Income Analytics will drive innovation and development for MSCI to provide enhanced analytical tools and solutions for real estate investors.”
Simon Shaw, CFO of Savills Plc, said:
“This investment is in line with the strategy set by Grosvenor Hill Ventures to invest in and support promising data technology start-ups. Tenant risk has been thrown into the spotlight this year, more than ever before, and as we come out of the crisis analysis undertaken by our valuation, transactional and property management teams is ever more crucial for clients. Our fund management business is also set to benefit from this tool to monitor tenant risk across our funds and portfolios. “
Notes to editors:
About Income Analytics
Income Analytics is based in London and was founded in 2019 by Matthew Richardson, Matthew Hopkinson and Chris Arnold.
Income Analytics founders, Matthew Richardson, Matthew Hopkinson and Chris Arnold have a combined 65-years of experience in commercial real estate across investment, quantitative analysis and financial data provision.
Prior to founding Income Analytics, Matthew Richardson was Director of Research, European Real Estate at Fidelity International in London while Chris Arnold was Head of Quants, Data Analytics and Systems, European Real Estate with Fidelity International. Matthew Hopkinson was previously a founding director at The Local Data Company, establishing it as the UK’s leading data and insights company in the retail sector.
Income Analytics' mission is to make the global CRE investment market more transparent and efficient by adding genuine value to the risk management process.
Income Analytics' real-time analytics and ratings on income risk in commercial real estate gives real estate professionals, investors and lenders data-driven insights that allow them to:
- View the entire global corporate structure of their counter party
- Quantify and forecast the future probability of tenant failure
- Convert the projected probability of loss to an equivalent corporate bond rating
- Monitor the financial health of tenants 24/7
- Benchmark asset and portfolio level exposures
Income Analytics welcomes new team members
Michiel Foekens has joined Income Analytics as Director of Sales to help drive our exciting and ambitious growth plans.
Income Analytics Launches Income Risk Reports “T200”
April 27th 2023, London. The Income Analytics (INCANS) UK T200 report shows hospitality sector tenants are less likely to default than 12 months ago. The sector is not out of danger, with average rates still below the UK all sector average, but there is clear improvement. Pubs & restaurants recorded the largest positive change across all sectors.
Real estate data veteran Mallinson joins Income Analytics
February 6th 2023, London. Income Analytics (INCANS) announced today that Simon Mallinson has been appointed as its Chief Operating Officer. Established in 2020, INCANS is focused on helping clients quantify tenant income risk and minimise future losses. “We are excited Simon Mallinson has joined us as we enter the next stage of our growth” said Matthew Richardson, co-founder and CEO of INCANS. “Simon has a wealth of global experience delivering real-time, actionable data to real estate professionals and is the right individual to reinforce INCANS growth”.
Retailer health check: who will be next after Joules?
Great to see our tenant default analysis feature in a recent piece by React News.
How NewRiver is stress-testing its portfolio
In a recent article run by EG, Pui-Guan Man looks at how real estate investors and owners are using INCANS® scores to help quantify the future cashflow at risk caused by potential tenant defaults.
UK CRE investment markets go "income only" as yield gap over bonds disappear
Since 2008, commercial real estate has enjoyed an unprecedented bull run in terms of capital value growth. That charge is now over. Today’s economic realities mean that the returns from real estate investments are likely to be “income only” for the foreseeable future. Under such conditions investors need to shift their attention to the quality and duration of their rental cashflows.
Logistics tenants are under pressure while retail woes continue
Businesses in the logistics sector are the highest risk tenants, while those in healthcare and education present the lowest risk. These are the findings of the INCANS Top 200 Averages for Q2 2022. The ratings, created by Income Analytics, give real estate professionals a likelihood of tenant failure by using advanced statistical modelling. The lower the score, the higher the risk of default. The following are most challenged sectors using data to the end of Q2 2022:
Driving with the rearview mirror: CRE needs a new roadmap for recession risks
Navigating the post-pandemic economy is turning out to be hard. Ahead are hidden hazards, sharp corners and unpredictable oncoming traffic. UK inflation rose to 9.1% in May, according to data released today. In the U.S. it is 8.5%, both at 40 year highs and both expected to grow. Energy prices are soaring, and growth on both sides of the Atlantic is doubtful: U.S. first-quarter growth was 0.1% whilst UK GDP fell by 0.3% in April.
Risk of tenant default higher in logistics than retail or leisure
New data on tenant default risk from Income Analytics has underscored the vulnerability of many logistics occupiers.
Income Analytics partners with EG Radius to supply tenant and asset risk solution for the UK real estate industry
Matthew Richardson, Founder and CEO of Income Analytics, said: “We very much welcome the opportunity to work with EG in providing a “best in class” tenant risk solution to their clients. It is an area of the market that has been neglected for far too long, and recent events have only confirmed the need for landlords to better understand their tenants and the challenges they face.” "The INCANS® Scoring system was set up to answer a simple question – “What is the % probability that a tenant will default during the term of their lease?” We are delighted to be able to offer this capability alongside EG’s extensive data sharing platform.”
Income Analytics releases industry market averages to the platform
We are pleased to announce the product release of our Top 200 Industry and Property Sector Averages. This is the result of months of analysis by our research team, bringing this data to life for the first time.
New PDF report release
We are delighted to announce that we have released a new set of tenant, asset and portfolio level PDF reports. These will be available on the INCANS platform from Monday 7th February 2022 and have been developed in response to client feedback over the last 12 months.
MSCI on calculating the risk to real estate income
In this month's PERE publication René Veerman from MSCI Real Estate writes about how Covid has shown the need for data tools that enable investors to understand the risk that tenant defaults pose to cashflows and hence why MSCI Inc. has invested in Income Analytics and is providing access to the INCANS tenant income risk dashboard to its global client base.
MSCI: "Understanding Tenant Default Risk with Income Analytics"
Check out this fantastic new video by MSCI Real Estate MSCI Inc. on our partnership and 'how and why 'this is such an exciting and important partnership for the global commercial real estate industry.
Welcome to new starter Lucy Baker
We are excited to announce that Lucy Baker has joined Income Analytics as our new Account Manager, she will be working closely with all clients as well as our Sales team.
"Why The UK's Supply Chain Crisis Could Be A Mega-Headache For Landlords"
Exclusive data provided to Bisnow by Income Analytics shows it likely means more bad news for landlords, some of whose tenants may now fail to make it through the vital pre-Christmas trading period.
Real estate’s income risk in the wake of COVID-19
In this blog by MSCI, the relationship between the MSCI UK Indices and the INCANS scores is analysed delivering some fascinating insights
"Income Analytics Aiming to Shake Up Real Estate Valuation"
Property Week reports
Power of Data Podcast
Matt Richardson, CEO Income Analytics, is interviewed for the Dun & Bradstreet Power of Data podcast series by Nick White, Head of D&B Accelerate.
"Why We Need To Talk About Your Risky Tenants"
The founders of a new proptech venture that has just won backing from MSCI and Savills said UK commercial real estate needs to rethink its approach to cashflow.