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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 cash flows 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.

Read the article HERE.

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: "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.

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

"Less Subjectivity Please! Issues With Framing & Subjectivity in Global Real Estate Markets"

Real estate investments vehicles are categorised in risk terms according to familiar yet subjective style labels such “core”, “core +”, “value add” or “opportunistic”. What empirical evidence supports the use of these labels?

The financialisaton of global commercial real estate markets

Over the last 30 years institutional investors have come to dominate the real estate investment markets in North America, Europe, Australasia and much of China and SE Asia. But this was not always the case. Prior to the mid-1980s, most real estate investment liquidity was generated domestically from local investors — usually through syndication networks and major real estate families. Insurance companies and side-arms of local banks also invested but almost always directly into specific properties.

Welcome to new starter Tom Carruthers

Today we are delighted to welcome Tom Carruthers as our new Research Analyst who will be work with our Data Science and Quants team to help deliver our exciting analytics product roadmap.

"Income data transparency key to unlocking billion-dollar inflows of institutional capital into commercial real estate", says property data firm Income Analytics

Commercial real estate could attract billions of pounds of passive capital in the way fixed income and equities do if the sector reported income data more accurately and transparently to investors, according to Matthew Richardson, the chief executive of property data firm Income Analytics.