Dividends are paid monthly and reviewed on a quarterly basis to ensure the amount distributed is in keeping with profit generated by the property and its overall financial position.
Every property has a projected dividend yield reflecting the forecast net rental profit over 12 months as a percentage of its latest valuation. The dividend yield displayed on each property page is stated after deduction of all fees and costs including an AUM fee of 1.2%, paid to Property Partner.
As an example, if you invested £10,000 in a property on the platform with an estimated dividend yield of 3.0%, you would expect to receive £300 per year in dividends (i.e. £10,000 x 3.0%). This would mean an estimated income of £25.00 a month, which would be paid directly into your Property Partner account. You are free to then reinvest or withdraw those funds.
Clients with large portfolios are charged an AUM fee of 1.2% on the first £25,000 of their investments and 0.7% on their investments in excess of £25,000 . The lower rate of 0.7% is achieved via a cash AUM rebate payment into a client’s Property Partner account amounting to 0.5% (being the difference between the 1.2% and 0.7% rates) for the portion of their portfolio over and above £25,000.
When shares are sold, investors realise a capital return (potentially a gain or loss). The combination of dividend income, capital return and Property Partner fees determine the total return of an investment.