Managing real estate income risk
Great to see such a big turnout for last week’s webinar “Managing real estate income risk. Have we learnt anything since the financial crisis?”.
Will Robson, Global Head of Real Estate Solutions Research at MSCI and our very own Matt Richardson from Income Analytics were joined by Jan Jescow Stoer from KanAm Grund to discuss the importance of income protection as the financial outlook becomes uncertain and some groups of tenants come under greater financial pressure. The session was chaired by Brenda Maton from IPE.
Will Robson cited recent research from MSCI that showed the income component contributes c70% of long term total returns in UK commercial property markets. Matt Richardson went on to explain that investors and lenders need to adopt a more forensic approach to calculating the probability of loss when entering into letting or investment deals. He proposed that the industry should move away from relying on company credit reports and apply analytics from the fixed income markets that focus far more on forward looking probabilities of default more commonly referred to as “PD” rates.
Jan Jescow Stoer provide an excellent case study on how this new approach had been applied at KanAm Grund in Germany.
You can view the entire webinar HERE.
INCANS risk summit success
Great to see a packed turnout for the inaugural INCANS Risk Summit held at Savills London HQ. Many thanks to all involved, and watch out for our next INCANS Risk Insight newsletter for more market-leading intelligence on the world of commercial real estate risk.
INCANS Income Risk Summit
INCANS Income Risk Summit on 25th November. The event is kindly being hosted by Savills. The question we will be addressing is; -What has the GFC and Covid taught us about risk in real estate? -Have we learnt the lessons?
IPF/MSCI UK Property Investment Webinar Q3 2021
Join us for a virtual event on November 8, where we’ll announce the results of the MSCI UK Quarterly Property Index for Q3 2021. We will then take a focus on income risk in the wake of Covid-19: Matt Richardson, CEO and Co-Founder, Income Analytics will join Will Robson, Global Head of Real Estate Solutions Research, to discuss MSCI’s latest research.
CREFC Webinar: "How Well Do You Know Your Tenants Income Risk?"
In a low capital growth market commercial real estate becomes a fixed income style investment with a floating capital opportunity attached. But, in the current pandemic, it’s important to understand the occupier, their business environment, along with specific requirements. That need is all the greater in the many parts of the real estate market seeing increasing operating risk for landlords and their investors and lenders. But how do investors, landlords, property professionals and lenders rate, analyse and monitor their income risk and what tools and data exist to support them in this task?