text:
Logo Animation Video Maker
Logo manufacturers are a fast, simple, as well as affordable means to get a logo style for your company. There are various other means to get a logo besides a logo maker:
You can work with a firm, however that can be costly. There are freelance developers who can whip up a logo for you, however that's a great option only if you have a clear idea of what you desire.
If you're starting a company on a small budget, a logo generator or maker online can be the finest alternative. A logo maker (in some cases called logo creator or logo generator) enables you to produce a logo rapidly and easily.
Thanks to the emergence of logo manufacturers, local business proprietors like you currently have budget-friendly style devices at their fingertips to create high-grade, professional logos.
There are a lot of logo makers out there, yet not all are equal. To make the option much easier for you, we examined the best logo manufacturers of 2022.
I rated each logo maker device based on the adhering to criteria:
Reduce of use: This score reflects how easy to use and also quick a tool is for creating logos
Creativity: Whether the logo maker offers a ready-to-use layout or a completely distinct style
Modification alternatives: The level to which you can tailor the logo, such as color, layout, size, etc
Cost: How much it sets you back to download and install as well as use the logo you created
Added solutions offered: Features such as branded material like calling card, social media sites profile images, as well as a lot more
Below are the leading 14 Logo Makers Online entering to 2023
Below's a short run-through of each logo maker. Continue reading to figure out why I gave each of these logo makers the scores I did.
Relieve of use
Tailor Brands
Distinct layouts
Special layouts.
Special layouts.
Wix logo.
Distinct designs.
Logo Genie.
Design templates.
Special styles.
Completely DIY.
Dressmaker Brands.
Dressmaker Brands logo maker.
Fairly talking, Dressmaker Brands logo maker is the market leader (not being in any way prejudiced here, naturally).
Our logo layout device is AI-powered and also we don't utilize design themes like a lot of our competitors, which indicates each logo created is unique to your brand name.
Tailor Brands also uses a suite of branding tools that include social media monitoring functions, service materials, and also much more.
We offer affordable prices, with a $3.99 month-to-month registration that includes high-resolution data, clear PNG styles, brand analytics, and growth tools. The $9.99 plan includes an entire suite of style devices, while the costs package provides social media sites administration tools for $15.99.
- One of the most uncomplicated logo-making platforms, with very easy editing and layout choices built in.
- You can reserve a totally free consultation to talk to an internal specialist that'll help with your site style.
- Fair pricing that's below the logo maker market average.
- Assistance is just available online, though it still uses fast solutions and services.
- The personalization choices leave some area for improvement in regards to flexibility and fine-tuning.
- You can't select the exact shades you want, you can just choose the provided shade combinations.
Try this logo maker free of cost.
If you like it, and also see!
Go Into a Logo Call.
over 25M logo designs created with Tailor Brands.
Layout Hillside.
Layout Hill supplies a fast, no-frills logo maker that delivers results in mins. The firm's design device is simpler to use than its designer industry and also it gives a wide range in regards to finished items.
You start by choosing your preference from a collection of themes as well as styles, then the software application provides a finished logo that incorporates as a lot of the preferences as possible.
If you desire a professional design, you can release a layout contest that grants designers a prize for the leading total logo. As soon as they have actually designed a logo they are satisfied with as well as desire to finalize the selection, you just have to subscribe.
Design Hillside provides a standard bundle for $20.00, that includes a conventional resolution logo.
- The firm's numerous logo assets like colors, forms, and also fonts supply distinct logo style choices.
- It's simple to upgrade existing designs prior to picking a final product, allowing you fine-tune layouts you like but aren't entirely delighted with.
- Logos come ready for multiple uses, with SVG and also EPS documents offered along with high-resolution logos in Costs and Enterprise plans.
- Their basic variation only includes a standard resolution logo file, which can be difficult to resize at certain resolutions.
- Including an extra function can begin at $65.00, well over several rivals.
- The editing tools can be complicated to browse for novice individuals and also, sometimes, can be unresponsive.
Generating a special layout is a simple 3-steps procedure and also it's straightforward to alter the format, icon, background shapes, and total design.
When you address some inquiries regarding what type of logo you desire, the generator will generate a design that you can conserve, purchase, as well as edit. As well as, if you aren't satisfied with the layout, you can keep clicking "Produce" up until you locate one you love.
You can pick a fundamental PNG file for $20.00, or pay a single fee starting at $65.00 for premium options that include clear image data, full ownership, and also unlimited adjustments as well as edits.
- Customers can modify their wrapped up logo in addition to quickly check out various possible designs in a convenient tab.
- You'll receive a last logo layout in as little as 3 minutes and can fully modify all aspects to adjust to your taste.
- The logo maker supplies a superb variety of prefabricated color schemes.
- The fundamental subscription only covers a basic image file, with a limited variety of offered edits.
- Although part of the expensive Business package, the social media package does not include any real social media tools; it just provides various sizes of your logo.
- Consumer assistance has space for enhancement in regards to faster reactions.
For those aiming to centralize their logo style and also internet development on a solitary platform, the Wix Logo Maker offers a superior solution.
The firm's logo maker is easy to use as well as generates special logo layouts. You have to finish 3 quick steps prior to getting a checklist of feasible style choices.
In the editor, you can pick elements to customize and likewise see exactly how your logo would certainly view an internet site through a visualization tool.
Logo designs are available for as low as $12.99 and also consist of a high-resolution documents along with full business usage rights.
- The logo maker is implied to function in tandem with the website designer, so logos are built to be web-ready.
- Unlike some rivals, the basic package includes a high-resolution picture data in addition to complete usage rights.
- When developing styles that fit your vision, the editor is user-friendly and also provides some adaptability.
- The alternative to make final edits are somewhat limited and also use much less selection than other rivals.
- A lot of logo results are oriented toward wordmarks with easy styles as well as there aren't as numerous options to create an extra complex design.
- Branding devices and progressed alternatives are only readily available for users who choose the specialist plan or greater.
GraphicSprings assures to create a logo in 1 minute or less and they deliver on it.
Unlike some logo maker tools that automate a significant portion of the style process, GraphicSprings provides a hybrid model. When the base logo is full, you have complete flexibility to pick the colors, shapes, as well as pictures you such as.
GraphicSprings offers 4 plans: Basic, which includes a high-resolution photo documents that starts at $19.99. You can also pick the Standard, Pro, and Platinum options ($ 39.99, $99.99, and $199.99), which add a range of attributes including data styles and also various other branding devices.
- Deals impressive freedom for creating a logo that's really unique with a much more thorough editor.
- Logo designs can be ready for use in just 1 min with small tuning and also tweaks.
- You can pick from a range of plans that allow you select which features you require.
- The logo maker isn't suitable for novices or those searching for a less-involved design solution for their logo.
- Their library of available design themes is much more restricted than other logo manufacturers.
- The editor can be challenging to understand at times as well as utilizing it calls for perseverance, as some items are harder to take care of on display.
Placeit by Envato supplies a template-based logo maker that's both quick as well as easy to use. All you have to do is go into the name of your business and also sector, and after that the logo maker will certainly reveal you a selection of themes.
You'll be taken to the editor where you can alter the font style, shade, as well as design of various aspects when you choose a template you such as.
You can buy your logo as an one-time purchase for $39.00, or sign up for their monthly (or yearly) plan for $29.00, that includes your logo and over 12,000 layout video clips, themes, and mockups.
- You can choose from over 3,000 industry-specific design templates.
- The system allows you to edit your logo prior to acquiring.
- Their basic plan comes with a high-resolution logo, along with a vector documents (which is excellent for offline printing).
- As Placeit utilizes design templates, you may end up with a logo that looks comparable to others that make use of the solution.
- There's no way to download your logo completely free, even with a watermark.
- While upgrading to an unlimited membership will give you more layout tools, it will not offer your logo itself any type of included value.
Logo Genie.
Logo Genie.
One of my favored aspects of Logo Genie is that you can pick the type of logo (font style, symbol, or form based). The preliminary layout process takes less than 1 min as well as results in hundreds of logo alternatives.
Logos are available starting at $24.90, that includes high-resolution documents as well as access to sustain. You can likewise add features like vector layouts, modifications, and social media network logo designs.
- Prices is straightforward and offers a solitary plan that allows you select which features you desire.
- The layout tool is easy to use and offers fantastic customizability for pre-made logo styles.
- Logos are offered for download in a selection of formats consisting of JPG, PNG, EPS, as well as extra.
- You can just modify your logo during the first purchase procedure.
- Logo Genie does not offer advanced layout software program such as Illustrator offers.
- Features and attachments can make the single settlement substantially more than the initial $24.90 price factor.
Also as a totally free tool, Canva offers among the best logo generators for users in all ability levels. Their logo maker tool features numerous pre-made logo templates that you can modify.
Unlike some pricey logo manufacturers that guide individuals via the procedure, Canva allows you pick every aspect to fit your demands, albeit with no aid. Additionally, you can upload your very own possessions to be included in the final style.
- Canva's structured and stripped-down interface is very easy to find out as well as make use of for individuals in any way ability degrees.
- A great selection of free possessions, consisting of images, symbols, and pre-made style layouts, make the initial logo layout a simple procedure.
- There's no need to spend for anything as long as users utilize cost-free assets and also photos.
- Acquired possessions like images and aspects are just multiple-use for 24 hours as well as not indefinitely like various other use licenses permit.
- There are no alignment features, so individuals frequently have to guess or estimate where a component in the design is aligned correctly.
- It does not include grid tools, which make it difficult to be accurate when putting specific aspects in a logo and contrasting sizes.
Hatchful by Shopify is a logo maker constructed for entrepreneurs on the go. No design experience is needed to create your very own logo from the ground up.
To get started, you choose your market (appeal, style and also health and wellness, tech, pet dogs, and also a lot more). Next off, you select your aesthetic style, ranging from stylish to modern. Then you include your company name and also motto (both are optional).
I such as that they ask where your logo will certainly be used: Online shop or internet site, social media, print, swag, and so on. The logo maker will certainly generate a number of styles that you pick to begin editing and enhancing as soon as you connect in all those information. As well as you can always go back as well as pick a different logo any time.
- What you obtain for free goes over– a high-resolution logo with endless revisions and social networks profile photos for Facebook, Instagram, Twitter, and also extra.
- A big collection of layouts for all sorts of markets.
- Quick, easy to use, as well as affordable.
- The editor limits you from altering specific aspects (the colors are predefined), it simply supplies you with various versions of the logo you initially picked.
- You don't have a lot of creative liberty.
- The generator offers 100s of logo options and also many are off the mark, easy or generic.
Namecheap is a no-experience-necessary editor with an unexpected range of modification choices. You start by entering your organization name and also market, picking a couple of font styles you like, choose 3 symbols, and also letting the generator work its magic.
You'll check out more than 100 ready-to-use logo styles so you will not have a hard time locating at the very least one you enjoy. Bonus offer: You don't require to produce an account or pay anything to download a logo and modify.
- Extremely beginner-friendly editor.
- You get submit styles for the internet and also print absolutely free.
- You don't have to enroll in a Namecheap account to use the logo maker.
- Business use rights may not be consisted of for your logo.
- You can not make sophisticated logo personalizations.
- The prefabricated logo designs aren't phenomenal or unique but do the job.
BrandCrowd guarantees to produce a beautiful logo with no hassle. You can likewise do a keyword search to get an extra accurate layout.
When you get a logo, you can decide to be billed month-to-month for $15/month or annually for $5/month. With both, the logo is yours forever as well as you can terminate anytime. You include on an exclusive certificate for $145 if you want to get the complete intellectual residential or commercial property rights to the design from the designer. That means the logo will be eliminated from the shop as well as will certainly no more be readily available for any individual else to purchase.
- You can make minor tweaks as well as changes (like font style or color) absolutely free after buying.
- If you need sophisticated modification (include components, modification shapes, etc) you can function individually with an internal designer for $99.
- Consists of a big logo collection with good-quality logo designs to pick from.
- You need to enter your email address to begin editing your logo.
- The website features a Facebook as well as Instagram message and also story maker, in addition to a YouTube and also LinkedIn banner maker.
- When editing and enhancing a design template the icon can not be transformed, just the color, layout, and also shapes.
FreeLogoDesign provides a mix of useful functions that set it in addition to various other complimentary logo manufacturers.
You can pick from a wide variety of pre-made layout templates in numerous classifications ranging from cleansing as well as maintenance to take a trip and resort. Or, you can start without a layout and enjoy creating a logo from scratch.
You can additionally sneak peek what your logo would certainly look like on various mediums like a company t-shirt, card, and also signs.
Non-paying users can download and install a low-resolution version of their logo in a PNG data.
- The considerable collection of layouts makes it very easy to find a unforgettable as well as distinct design that fits you.
- The logo editor is user-friendly and also permits quick customization as well as fine-tuning.
- Locating the appropriate logo is made easier by selecting the details market or area you're in.
- Free logos are only available in 200 by 200 pixels and PNG, making them harder to scale and modify later.
- The platform doesn't help limit the option of logo designs through any procedure, so you need to locate the best layout on your own.
- The logo editor can be perplexing to utilize sometimes when elements are placed with low opacity or clear typefaces.
Logaster is optimal for those trying to find an affordable, high-quality logo. Their platform is template-based, so you choose from a variety of readily available designs. It's very easy to modify various elements and also also switch out symbols to create a more unique logo.
You'll get a totally free tiny logo with a watermark, yet you can upgrade for $9.99 to get high-resolution documents and also different layouts. For an extra $9.99, Logaster uses layouts for business cards, envelopes, and also other products.
- The logo maker is user-friendly and also lets you fine-tune your picked design to develop a much more one-of-a-kind logo.
- Developing a logo takes less than 3 minutes and also you can make as many logo designs as you desire totally free.
- Deals other branding materials like calling card, favicons, envelopes, as well as more.
- The complimentary logos offered come with a watermark, which indicates they're not completely ready for use in advertising and marketing as well as branding products.
- Logos aren't distinctly created for every customer, so it could be instead generic.
- Some helpful features are readily available for an additional cost, though it's not constantly made immediately clear.
If you're trying to find simpleness and a standard method to get your branding off the ground, Ucraft offers a straightforward, no-frills logo designer. Unlike its rivals, the company's logo maker doesn't use any layout assistance– either AI or human.
Rather, you can pick from a choice of cost-free fonts, forms, as well as icons to design a logo in Ucraft's layout sandbox, entirely from square one.
To download and install documents in vector and also high-resolution formats, you have to pay a single $12.00 charge.
- The design platform is drag-and-drop, so you can quickly pick aspects as well as move them around with no problems.
- All the possessions offered are totally free, so there are no concealed prices or costs to download and install logos.
- Customers receive a free PNG documents with a transparent background, which lets them use it in any setting.
- The selection of existing assets aren't extensive, so you may need to be innovative with the restricted tools offered.
- There's no alignment tool so you have to estimate specific positioning as well as manage small asymmetries.
- Does not supply much layout flexibility.
Over To You.
That's a wrap on the top 14 best logo manufacturers in 2022! I hope this run-down aids you decide which logo generator is right for you based on procedure, quality, and also cost.
The only point entrusted to do is play around with some logo manufacturers from the list!
Delighted designing!
One of my favorite facets of Logo Genie is that you can choose the type of logo (icon, font, or shape based). As soon as you connect in all those details, the logo maker will certainly generate a lot of styles that you pick to start editing. BrandCrowd assures to create a beautiful logo with no difficulty. When you get a logo, you can choose to be billed monthly for $15/month or annually for $5/month. That means the logo will certainly be eliminated from the shop and also will certainly no longer be available for anybody else to purchase.


text:
Frying dry chivda is a good option for traveling.
Eating laddoos made of flour or rava in the trip is also beneficial for health.
Best food options for traveling: Some people are very serious about their diet. Especially, most health conscious people refrain from eating outside things while traveling. At the same time, many people cook and take food from home for the journey, but the home food often gets spoiled during the journey. In such a situation, it can be best to keep some homemade food items for traveling. With these food items, you can not only satisfy your hunger while traveling, but can also save them from getting spoiled for a long time.
Actually, while going on a trip, people often pack food from home and take it, but the food at home lasts only for a short time in the journey. On the other hand, after the food gets spoiled, you have to eat things from outside even if you don't want to, so we are telling you some diet tips for the journey, by following which you can easily run the food at home for many days.
Fry Chivda
Frying dry chivda is a good option for traveling. At the same time, you can make it healthy by adding peanuts and some dry fruits to this chivda. Along with this, by mixing salty in the chivda, you can also add tadka of taste to it. Apart from this, you can get relief from light hunger by keeping some packets of salt, mathri, roasted gram and biscuits.
read this also: These 5 romantic destinations of Uttarakhand are perfect for couples, must visit
Pack dry vegetables in tiffin
Some people keep vegetables with spicy gravy or curry for the journey. By consuming which you may have stomach problems while traveling. Along with this, wet vegetables get spoiled quickly. In such a situation, it is better to keep dry things like bitter gourd, potato, okra and lentil kebabs for traveling.
read this also: These honeymoon destinations are best for couples in winter, definitely explore with partner
avoid having bread
People often pack bread to avoid oily food while traveling. But bread does not remain fresh for long. That's why it is best to keep paratha or puri while traveling. Also, by using milk instead of water while kneading the dough, you can save the paratha from spoiling for a long time. On the other hand, you can make it healthy and tasty by stuffing urad or gram dal in the paratha.
don't forget to sweeten
You can also include sweets in your diet as a snack while traveling. For this, apart from sweets made of dry fruits, keeping sesame laddoos, gajak and chikki can be a better option. Along with this, it is also very healthy to eat laddoos made of flour or rava while traveling.
(Disclaimer: The information and information given in this article is based on general beliefs. Hindi news18 does not confirm these. Before implementing them, contact the concerned expert.)
First read breaking news in Hindi News18 Hindi| Read today's latest news, live news updates, most reliable Hindi news website News18 Hindi.
FIRST PUBLISHED : January 29, 2023, 06:41 IST
Find our other website for you and your needs
Kashtee A shayari,Jokes,Heath,News and Blog website.
Your GPL A Digital product website
Amazdeel Amazon affiliated product website.
Job Portal A Job website
Indoreetalk Hindi News website
know24news A auto news website in English and Hindi.
Q & Answer website A website for any query and question.
Quotes A Christmas Quotes.
New Year QuotesNew Year Quotes
Cricket News website A website for cricket score online and upcoming matches.
Government job A Government job announcement portal.
Gaming Information Website A website for Gaming lover.
international news Website A website for News lover
Normalpost A guest post website and Blog website.
Sniper Gun Adventure World game A Game for your entertainment.
A news website A Game for your entertainment.
Bollywood and Hollywood news A website Bollywood and Hollywood viral news .
Health Tips Website A website for Health related issue and some idea for health .
Share Market Website A website for share market news and some viral news related to IPO, Currency, Commodity market, Banking and finance.
Baby care Product website A website for your baby product.
Technology Website A website for new launching technology and mobile also gadgets Website.
International News information Website A website for News Lover.
Cheap Hosting Website A website for who want to search a cheap hosting for their website and blog.

subset: commoncrawl


text:
Safer harbour REITs: an update - REITs to back as investors come out of lockdown by Mike Foster and Yingheng Chen - Hardman & Co
Page content transcription
If your browser does not render page correctly, please read the page content below
Safer harbour REITs: an update REITs to back as investors come out of lockdown by Mike Foster and Yingheng Chen
May 2020 Table of contents Safer harbour REITs: an update ........................................................................................... 3 Executive summary ................................................................................................................. 4 Overview of ratings and performance ............................................................................... 9 The Hardman & Co secure income basket ..................................................................10 Methodologies, definitions and clarifications..............................................................10 Ratings, financial ratios and investment missions ......................................................11 Some appealing investment cases .....................................................................................17 Outperformance and positive prospects .....................................................................18 Shareholders ...........................................................................................................................24 UK "safer harbour" REITs ....................................................................................................25 These are our selection criteria ......................................................................................25 How these REITs fit into "new normal" ........................................................................29 Dividends – it just got permanently harder, but not for these REITs ...................31 "Key worker" REITs ...........................................................................................................34 Second-quarter rent collection ..........................................................................................35 REITs' individual prospects .................................................................................................37 Assura ..................................................................................................................................38 Civitas Social Housing ......................................................................................................40 Empiric .................................................................................................................................43 GCP Student Living...........................................................................................................46 Impact Healthcare .............................................................................................................48 LXi .........................................................................................................................................51 Primary Health Properties ...............................................................................................54 The PRS REIT .....................................................................................................................56 Residential Secure Income ..............................................................................................59 Secure Income ...................................................................................................................62 Supermarket Income ........................................................................................................64 Target Healthcare .............................................................................................................66 Triple Point Social Housing .............................................................................................69 Tritax Big Box .....................................................................................................................71 Urban Logistics ..................................................................................................................74 Warehouse .........................................................................................................................76 Investor commentary on each asset sub-sector ............................................................78 Interest rate weakness .........................................................................................................90 Risks ..........................................................................................................................................91 Conclusion ...............................................................................................................................93 Disclaimer ................................................................................................................................95 Status of Hardman & Co's research under MiFID II ..................................................95 May 2020 2
Safer harbour REITs: an update Safer harbour REITs: an update REITs to back as investors come out of lockdown A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and "safer harbours". We introduced this universe with our report published in March 2019: "Secure income" REITs – Safe Harbour Available. Here, we take forward the investment case and story. We point to six REITs, in particular, where we believe the risk/reward is the most attractive. ► 2018 and 2019 saw outperformance: Past-year outperformance in the selected universe is 11.4% (12.9% unweighted), vs. the sector, after 5.7% outperformance over the year to our 2019 report. Despite this and previous outperformance, 5%-6% yields on sustainable dividends remain available, which we consider attractive. ► Income and transparency: The REITs' strategies are transparent and geared to sustainable income. 42% of the UK's top 100 quoted shares have announced dividend cuts, and this may well rise to ca.50%. At worst, 20% of the market capitalisation of the REITs listed in this report will cut 2020 dividends. For most, we believe they will rise. ► Designed for the retail, as well as institutional, investors: Recent conditions benefit corporates, which provide personal investors with income, and such investors are even more active in the market. Search for income will not abate, and yields available here are at a premium to the wider market. ► Risks: COVID-19 conditions generally play to these particular REITs' strengths. They are not GDP-exposed, other than on the margin. Quoted sector (and banking system) gearing is lower, so REITs are far less exposed to treasury management mistakes. There is a solid base, albeit some are having to cut dividends. ► Investment case: Investors have rightly been sceptical of real estate during a crisis. In the April share price bounces, there was an initial differentiation favouring defensiveness. Our view is that this will continue, fuelled by the need for income in a world where long interest rates will be "lower for longer". With the right exposure, investors have every reason to expect attractive, positive total returns. Financial ratings summary of selected REITs Share price Change year to Historical dividend Price to historical At current prices* (p) date yield EPRA NAV (x) Impact Healthcare (IHR) 96 -11.2% 6.5% 0.90 LXi (LXI) 100 -28.6% 5.8% 0.83 Primary Health Properties (PHP)** 158 -0.0% 3.6% 1.47 Residential Secure Income (RESI) 91 -7.1% 5.5% 0.83 Urban Logistics (SHED)** 122 -15.8% 6.3% 0.84 Warehouse REIT (WHR) 103 -6.4% 5.9% 0.97 This table highlights certain REITs we see as of interest. We remain positive on others, outlined in this report. *Priced as at 18 May 2020; **Hardman & Co client. Source: Hardman & Co Research May 2020 3
Safer harbour REITs: an update Executive summary Revisiting "Secure income" REITs Modest rents, cash transparency – attracting investor inflows Updating our previous publication In March 2019, we published an Insight entitled "Secure income" REITs, highlighting the safety that some REITs could provide to investors focused on income. It would seem appropriate to revisit the issue today, with volatile markets and scepticism in many investors' minds about the future demand for property. We believe that some specialist REITs continue to offer comfort to income investors, and recent weakness adds to their attractions. The investment case A price dip in a successful cohort 2020 has confirmed "secure" status of The REITs covered (see page 11) have been designed to provide stable, rising many of the REITs we cover income. Not all have succeeded, but 11 out of the 16 covered are set to avoid a cut (either announced by the Board or as per consensus forecasts), which is a much more resilient situation than that in the wider market or the wider real estate sector, in this most difficult year. Market background has impacted share We consider ratings attractive. Stock markets and, particularly, the real estate prices of successful ones… doyens have been weak, and cuts have hit, even in the universe in this report. This has resulted in a valuation landscape that we find particularly attractive, namely: …which yield 5.4% on progressive ► The average (unweighted) historical dividend yield stands at 5.6%, and the dividends prospective dividend yield is just over 5% after forecasting ca.10% dividend cuts. Those REITs (11 out of the 16 in our secure income basket) where dividends are not expected to be cut yield 5.4% on historical dividends – a surprisingly modest discount to that for the entire basket. Temporary share price weakness belies Although share prices have fallen recently and dividend yields are attractive, ongoing outperformance… investors backing this sector are investing in long-term outperformers. This applies to both their operational performance and their stock market performance over past years. Longer-term share price trends in these REITs are strong, absolute and relative: ► The average REIT in this report has generated positive total shareholder returns (TSR) in the past year. These REITS also outperformed in the year ahead of our March 2019 report, rising more than the rise in the wider sector. …11.4% (12.9% unweighted) 12-month ► The 11.4% (weighted), 12.9% (unweighted) outperformance vs. the UK real outperformance estate sector in the past year is based on the price moves above, versus a sector down 16.8%. Share prices in our "universe" have therefore fallen slightly. The Hardman & Co Secure Income REIT Basket (HSIRB) To help readers understand the resilience of the stocks we have identified, we have created a basket of them and compared this basket's performance to the 100 largest stocks on the London market, and the Real Estate sector. We chart, below, the basket of REITs created in our previous publication, which was priced on 13 March 2019. The basket is weighted and price trends to the pricing of this report, on 18 May 2020, are compared, rebased at 100. May 2020 4
Safer harbour REITs: an update Price performances since previous Hardman & Co sector research 120 110 100 90 80 70 60 HSIRB Top 100 UK real estate sector HSIRB: Hardman Secure Income Real Estate Basket Source: London Stock Exchange, Hardman & Co Research The chart clearly demonstrates that, although the basket has fallen a little in absolute terms since we published a year ago, it has substantially outperformed both the 100 largest stocks in the market as a whole and the UK real estate sector. For more detail on how we constructed this chart, please see the section later in this report, entitled Methodologies, definitions and clarifications. The REITs' investment strategy How do they operate and invest? While even the successful REITs (those not cutting their dividends) here yield far more than the stock market as a whole, their prospects are resilient. We outline in this report how the REITs' portfolios are successfully constructed for secure growth: ► This is achieved through a transparent, focused strategy. ► Most REITs offer end-tenants clear value-for-money rent levels. ► The 14.1-year average WAULT (weighted average unexpired lease term) is lengthy. ► The value inherent in the rents and the overall strong lessee covenants mean the rent progression should be predictable, affordable and consistently positive. ► Excluding the student accommodation REITs, ca.75% of the leases are indexed to CPI, RPI or fixed uplifts, and this rises to 90%, including other upwards-only contracts. ► The result is that £2.2bn has been raised, or 22% of market capitalisation, as new equity in the past 24 months, in 18 fund raises. May 2020 5
Safer harbour REITs: an update "Safer harbour" REITs deliver on multiple attractions Investment case for "safer harbour" or This investment case is not about finding pockets of resilience. This report seeks a "secure income" REITs well established, universe that is structurally better-placed than the whole equity market. COVID-19 has only highlighted the relative success of (most of) the REITs in this report. and COVID-19 only accentuates their attractions further Resilient leases and dividends Cash, dividends and trends that were already in place Dividends ► "Safer harbour" REITs pay the dividends. Of the 16 listed here, five (maybe in the end four) in 2020 will likely cut, but total weighted £ reduction is likely to fall by no more than 10% of the total across the 16. See page 12. The unweighted might approach 20%, dragged down principally by PBSA (purpose- built student accommodation), which – arguably – is a sector that should not qualify for this report. Dividend income in the wider market is now under permanent constraint. The broader equity-market dividend payment situation has been made much worse, permanently, by COVID-19. Cash ► Cash is king, and much of the real estate sector remains illiquid. This applies to assets that have poor forward income visibility and very much also to the "open- ended funds" (also known as PAIFs). Again, COVID-19 simply reminds investors of existing tensions. UK all-property rents were already growing much more slowly than "safer harbour" REITs. ► While there may be concerns elsewhere in the property sector, most "safer harbour" or "secure income" REITs are collecting rent fully on time – the contrast with the broader market is quite stark. See page 35. Assets tenants delighted with ► This is not easy, plain sailing. Several REITs in this report have reported 97%- 100% rent payment on time for the quarter day end-March, but not all have. (See individual commentaries in this report.) ► The "safer harbour" REITs generally provide assets that society needs in increasing numbers, just as they generally provide income streams that investors need – a happy coincidence. One important indicator of likely success is "value-for-money." Modest rents, and the majority is CPI/RPI-indexed Really important that leases are not One of the most important supports to the investment case of the REITs in this treated just as financial structures report is "value-for-money." We have referred to modest rents – the definition varies by sector – and this is an important plank in the investment case. They are a hallmark of most of the REITs in this report. We would include all "secure income" REITs, bar the PBSA REITs. High exposure to CPI/RPI linkage We estimate – based on results announcements, company-issued Fact Sheets and presentations – that nearly 50% weighted and nearly 60% unweighted income from these 16 "secure income" REITs is linked to CPI or RPI. Some examples of value ► Demand dynamics and rents on our six REIT highlights REIT Does COVID-19 boost demand? Rents Impact Healthcare (IHR) Neutral ca.10% fees LXi (LXI) Neutral e.g. budget hotels Primary Health Properties (PHP) Yes Value proposition Residential Secure Income (RESI) Yes All rents below market Urban Logistics (SHED) Yes Typical ca.£5-£6 sq. ft. p.a. Warehouse REIT (WHR) Yes Typical ca.£5 -£6 sq. ft. p.a. This table highlights certain REITs of interest. We remain positive on others, outlined in this report. Source: Hardman & Co Research May 2020 6
Safer harbour REITs: an update "Modest" rents may, for example, mean that they enhance labour retention or that they are a low portion of operators' gross profits. While the rents of Primary Health Properties (PHP) are above those typical for older, smaller, converted properties, i) this is comparing "apples with bananas" in terms of quality and sustainability for both patients and GPs, ii) it is also comparing "apples with bananas" in terms of the opportunity to save the NHS money, and also improve outcomes. Purpose-built new primary medical assets offer more services, taking pressure off hospitals in areas such as testing. A good destination for new equity Significant, undimmed, growth With £1bn p.a. or more of new equity issuance, these 16 REITs have channelled momentum significant new equity into growing real estate asset classes. There is still plenty of potential to deploy new equity. Even in niche sectors (e.g. supermarkets), these REITs' acquisitions have accounted for less than 10% of the asset class transaction flow. The majority of REITs covered here are set to grow dividends We have already seen many companies deferring, reducing or even cancelling dividend payments. These include some of the staple constituents of income portfolios, such as Shell; the past month has taught investors that owning shares in the largest 100 companies does not shield you from this risk. Statements have made it clear that the economic uncertainty ahead also casts a shadow over the immediate prospects for dividend growth. In contrast, although the REITs covered here are likely, in aggregate, to cut dividends by up to 10% this year, we believe the majority will immediately return to dividend growth. Thus, these REITs should stand out as a much safer option than the broader market. This report seeks to verify how robust these particular REITs are, and to support our conclusion that they offer value. New issuance £2.2bn raise over two years – often ► We calculate that the REITs covered in this report have raised £2.2bn new over-subscribed growth equity in the past two years alone. Their market capitalisation totals £11.5bn, well up on the total as of the date of our previous report. The majority of secondary issues have raised more than the original intention. ► REITs with the attribute of strong transparency, have, understandably, a solid appeal to a broad range of shareholder classes, including direct retail investors and wealth managers. We estimate ca.50% weighted and Since the 2008 global financial crisis, most UK REIT equity issuance has been aimed ca.60% unweighted income linked to at seekers of stable, progressive income, which hits the "bottom line" in a predictable, transparent manner. In our report published in March 2019: "Secure CPI or RPI income" REITs – Safe Harbour Available, 17 such REITs were identified, whose mission was secure income, which was benefiting primarily from long-term indexed or fixed uplift income. We estimate that ca.50% of weighted and ca.60% of unweighted income is linked to CPI or RPI. Note: much is capped and collared with a 4% ceiling,. It is also to be noted that, out of the 17, one small REIT (AEW Long) was delisted at a loss. Rebuilding the UK: retail investor, as well as institutional attraction Retail investors are increasingly important to the market, as identified by Hardman & Co's work with the Office for National Statistics, Share ownership: for the many, not the few, published earlier this year. The REITs highlighted here are mostly designed to fit their requirements far better than is the case for the broader market May 2020 7
Safer harbour REITs: an update These REITs have an advantage regarding These REITs are designed for transparency and are simple to understand. They fulfil secondary fund raises – designed with investors' need for trusted and regular income. Many indicate their affinity by paying dividends quarterly. Indeed, our client PHP's move from bi-annual to quarterly private investors and wealth managers in dividend payments was well received. Retail investors have been an increasing part mind of the UK investor universe in recent years. Retail investment provides new money A London Stock Exchange-hosted webinar, on 7 May (which Hardman & Co co- and drives share prices sponsored), illustrated that, while ca.5% of transaction cash volume (a far higher number of individual transactions) is normally retail, the recent markets have frequently seen 20%. Account openings at large private investor platforms have almost trebled (as per the presentation), and the balance is ca.75% of retail orders having been buys recently. Investors and the REITs have the appetite to engage, and the "simple" REIT structure encourages this. Wealth managers feature strongly in the shareholder lists of the REITs listed here. See page 24. In exactly right space for retail and We dwell on the importance of the retail investor market here, as we consider it to institutional investment be particularly supportive of many of the REITs listed in this report: they are designed for the visibility towards which the current climate is leaning. We are confident that more retail interest will come – as a result of the attributes illustrated on pages 3 to 5. May 2020 8
Safer harbour REITs: an update Overview of ratings and performance 16 REITs in this report have outperformed Hardman & Co identifies 16 quoted REITs in the UK investing in assets that target sector, but large majority still seen share lower-risk characteristics. This report is a sequel to our sector report of 19 March 2019. We summarise some key investment characteristics. As was stated in the price falls 2019 report, "not all should yet be considered fully safe harbour". Indeed, this has proven to be the case. Some – particularly the student, PBSA, sector – have performed badly, related to COVID-19. Further, the last report included AEW Long REIT, which acquired assets with long leases. The covenants proved to be poor, and the stock market listing was cancelled. We have included the negative effect from this in the statistics in the table below. The table below shows the current valuation ratings and share price performances in the 12 months to date. ► Share price-related data (12 months to date) Wider quoted real estate sector index change in past year -16.8% 16 REITs in this report ► Unweighted share price change in past year * -6.0% ► Weighted share price change in past year* -7.0% ► Unweighted average historical dividend yield 5.64% ► Weighted average historical dividend yield 4.99% ► Unweighted average share price/NAV 90% ► Weighted average share price/NAV 104% ► Market capitalisation £11.5bn *Data for 16 REITs in this report, plus the AEW REIT featured in the last report but since de-listed. Share prices as at 18 May 2020 compared with 17 May 2019 Source: Companies, Bloomberg, Hardman & Co calculations Ratings and performance as of our 2019 report From our last report just over a year ago Here, for comparison, are the valuation ratings as at our March 2019 report on this REIT universe, and share performance for the year to 13 March 2019. Outperformance and positive capital ► Share price-related data (12 months to March 2019) returns Wider quoted real estate sector index change in year to 13 March 2019 -3.0% 17 REITs in the Hardman & Co report of 19 March 2019 ► Unweighted share price change in previous year* +2.3% ► Weighted share price change in previous year* +2.7% ► Unweighted average historical dividend yield 5.1% ► Unweighted average share price/NAV 99.4% ► Market capitalisation £10.9bn *Data for 17 REITs in Hardman & Co report, priced on 13 March 2019 Source: Companies, Bloomberg, Hardman & Co calculations This 13 March 2019-based data also listed the performance of the wider quoted sector and compared this with the performance of the 17 REITs listed. Note that a number of these REITs have been floated in the past three years, and are therefore in asset deployment phase. Sector issuance continues, reflecting investor propositions that we consider to be realistic and compelling. Note also that, going forward, we will be excluding PBSA from this sector and will be planning to include LondonMetric, as it refocuses ever more away from retail and into logistics. May 2020 9
Safer harbour REITs: an update The Hardman & Co secure income basket The chart below shows the weighted share price performance of the 16 REITs in this report. Price performances since previous Hardman & Co sector research 120 110 100 90 80 70 60 HSIRB Top 100 UK real estate sector Source: London Stock Exchange, Hardman & Co Research Methodologies, definitions and clarifications This is not a total return, being based solely on share prices, without reinvesting dividends. It should be recalled that the dividend yield on the "basket" is above that of both the top 100 UK shares and also the wider UK real estate sector. Calculations are rebased to 100 and commenced on 13 March 2019, the date of the previous Hardman & Co research into this "basket" of REITs. The end date is as of the pricing of the REITs in this report. Data points illustrate that monthly movements are shown based on month-end prices. Weightings are not adjusted monthly. They do not reflect the weighting effect of new issues of stock, so as to recreate the investment performance of an investor at the origin of the basket, and they are not influenced by changes in relative sizes that come about as a result of new issues of stock. Were such adjustments to be made, the difference in the basket-weighted price movement would be de minimis. The real estate comparator comprises a weighted price chart for the UK real estate stocks that are among the largest 350 UK quoted stocks by market capitalisation. May 2020 10
Safer harbour REITs: an update Ratings, financial ratios and investment missions We turn now from the overview of the Hardman & Co universe of REITs and look at each one. Where the REITS invest REIT Commentary and selected statistics overview Assura (AGR) AGR invests in UK primary medical assets; it is of a slightly smaller lot size than PHP and includes an element of development. Civitas Social Housing (CSH) CSH invests in higher-acuity adult care and in supported housing, providing life-time secure, bespoke configured buildings, each with 5-10 flatlets. Empiric Student (ESP) ESP invests in PBSA focused on the mid-market across a wide range of institutions. COVID-19 stretches university finances. GCP Student Living (DIGS) DIGS invests in PBSA, involving an element of development and at the middle-/upper-end cost range, in South East UK. 14% of students are EU, 23% UK, 63% other overseas students. 30% are postgraduates. Impact Healthcare (IHR) IHR invests in care homes, with a focus on funding the expansion of existing, successful operators' businesses. LXi (LXI) LXI invests in various "secure income" sectors. It has one of the strongest NAV uplifts of the more recent IPOs. The larger sectoral exposures include budget hotels, logistics and others. Over 95% income is RPI- linked. Primary Health Properties PHP invests in UK primary medical assets, expanding into RoI. Its 23-year track record is the longest of its (PHP) peer group, and each year has seen a dividend rise. In March 2019, it completed an all-share merger with the listed MedicX Fund. The PRS REIT (PRSR) PRSR invests in new-build open-market houses to rent – almost exclusively to families. Rent is typically ca.35% of household income or less. Assets are bought at below vacant possession values. Residential Secure Income ReSI invests in UK social housing, with a focus on shared ownership, local authority housing and (RESI) retirement housing. Its overarching characteristic is high covenant strength. Secure Income (SIR) SIR invests in budget hotels, leisure and other assets with long leases. It is 90% UK-exposed. To end- 2019, its TSR was ca.20% (since IPO). Supermarket Income (SUPR) SUPR invests in supermarkets. Asset ranges of NIYs are wider in this "secure income" type than others. Supermarkets such as Tesco have, in the past three years, successfully coped with changes in the competitive landscape. Target Healthcare (THRL) THRL invests in care homes, exclusively purpose-built, modern, and all with en-suite wet rooms. Triple Point Social Housing SOHO invests in supported housing: life-time secure, bespoke configured buildings, each with 5-10 (SOHO) flatlets. It is similar to CSH, but focused somewhat more on purpose-built as new. Tritax Big Box (BBOX) BBOX invests in large-scale logistics hubs. It holds an amount of development land (ca.7.5% yield on development cost). Urban Logistics (SHED) SHED invests in "last-mile" logistics assets. Hands-on management and good purchase yields have delivered one of the strongest NAV uplifts of the more recent IPOs. Forward-funding is undertaken. It is growing well, post its recent equity raise. Warehouse REIT (WHR) WHR invests in "last-mile" warehouses/multi-lets: hands-on asset management and crystallising value uplifts. Source: Hardman & Co Research May 2020 11
Safer harbour REITs: an update Dividend yields and price/NAV per stock Price performance and ratings Share price: Share price: Share price: Historical Price to current end-2019 12 months ago dividend yield historical EPRA Ticker (p)* (p) (p) (%)* NAV (x)* AGR 77 78 61 3.6 1.44 CSH 102 91 84 5.3 0.94 ESP 60 97 94 7.4 0.55 DIGS 125 198 162 5.5 0.65 IHR 96 108 107 6.5 0.90 LXI 100 140 125 5.8 0.82 PHP 158 158 133 3.6 1.47 PRSR 70 92 97 5.7 0.72 RESI 91 98 97 5.5 0.83 SIR 250 430 401 6.5 0.58 SUPR 106 109 102 5.3 1.09 THRL 94 117 115 7.1 0.87 SOHO 97 92 94 5.3 0.92 BBOX 130 148 147 4.8 0.86 SHED 122 145 126 6.3 0.84 WHR 103 110 103 5.9 0.97 *Priced as at 18 May 2020 Source: Companies, Bloomberg, Hardman & Co calculations Historical dividend yield ratings Both generally and in specific sectors, The chart below illustrates dividend yields that are nearly all at a premium to the yields appear anomalously high historical 4.4% dividend yield on the UK's largest stocks. It also quantifies how the care home REITs and the "last-mile" logistics REITs offer among the highest dividend yields. The analysis in this report points to solid growth prospects and high visibility in both these sub-sectors. In the chart, REITs where dividends are cut are shaded and show the historical dividend. Historical dividend yields 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 *For BBOX, we emphasise that the likely cut will be modest, and is reflected in the historical figures Source: Company announcements, Hardman & Co Research May 2020 12
Safer harbour REITs: an update As to prospective dividends, we anticipate the historical payout of £573m p.a. (this includes dividends taken as scrip) will fall to ca.£515m this year. This takes into account assumptions on the REITs cutting or likely to cut dividends, and reflects dividends announced (as opposed to paid) in 2020. We anticipate a level of payout in 2021 similar to that seen for the REITs that have cut dividends. After a full year of cuts, we anticipate Tritax Big Box will grow its dividend again in 2021. For 2022, we anticipate overall growth resuming at ca.2.5%. High levels of growth for PHs, Assura, Among the higher levels of 2020 dividend growth, we estimate that Assura and PHP Warehouse REIT and Urban Logistics are well placed, as the underlying rents are accelerating, and PHP has further drivers to growth. We anticipate good growth from Warehouse REIT as it builds on 2019's prompt deployment of the equity raise. Urban Logistics is deploying its 2020 equity raise, and is well placed, with a 100% historical dividend cover on a significantly raised historical dividend. Although most share prices have outperformed, they have fallen in absolute terms The share prices of a number of the REITs covered in this report have been dragged down by negative sentiment: since year-end 2019, median prices are down 11.9% – down 14.9% unweighted average, down 10.2% weighted. However, the REITs in this report have outperformed the broader UK real estate sector. ► 11.4% outperformance of the UK real estate sector in the past year. ► 5.7% outperformance in the year to 13 March 2019 – our previous sector publication. In a very difficult period, REITs seeking Outperformance is entrenched. In the year to 13 March 2019, the weighted share secure income continue to outperform, prices of REITs covered rose 2.7%, versus a 3.0% fall in the UK real estate sector. Note that this data covers the 17 REITs listed in our previous report, as opposed to but several have seen share price falls the 16 REITS in this report. One REIT de-listed, at a loss. 11 out of the 16 REITs' where no economic damage has been share prices are down vs. a year ago, and 14 down on end-2019. done We consider the shorter-term weakness to represent an opportunity, evidenced by the longer-term outperformance. The dividend yield anomaly is dramatic Really appears anomalous, unless wider For the REITs in this report, our investment conclusion is that they offer better market dividends bounce back hugely prospects than the UK top 100 quoted shares and also the wider UK quoted property sector. Not only is the potential and the visibility better, but the rating is in 2021 dramatic. Current dividend yields Dividend yield at 18 Index or cohort May share prices ► UK top 100 based on 2020 dividends pre any dividend cuts 4.4% ► UK top 100 based on likely 2020 dividends 2.4% ► 16 REITs listed in this report pre any dividend cuts (weighted) 5.0% ► 16 REITs listed in this report based on estimated dividends 4.5% ► 16 REITs listed in this report pre any dividend cuts (unweighted) 5.6% ► 16 REITs listed in this report based on estimated dividends 4.9% Source: Companies, Bloomberg, Hardman & Co estimates and calculations May 2020 13
Safer harbour REITs: an update The dividend yields indicated for 17 REITS listed in our previous report are significantly different from the 16 REITs listed here. Their historical dividend yield (weighted) is 5.0%, albeit we estimate a ca.10% (weighted average) cut in 2020, followed by bounce-back in 2021. We are surprised by many of the dividend yields There seems to us to be little discernment, judging by the dividend yields. REIT description, share prices and dividends Historical year Share price, Current (or half-year Historical Prospective 13 March share price annualised) dividend dividend REIT Ticker Investment focus 2019 (p)* (p)** dividend (p)* yield (%) position Assura AGR Primary medical 57 77 2.80 3.6 Growth*** Civitas Social Housing CSH Social housing 98 102 5.30 5.3 Growth Empiric Student ESP Student accomm. 95 60 4.45 7.4 Cut GCP Student Living DIGS Student accomm. 154 125 6.25 5.5 Cut Impact Healthcare IHR Residential care 104 96 6.17 6.5 Growth*** LXi LXI Managed property 123 100 5.75 5.8 Growth*** Primary Health Properties PHP Primary medical 123 158 5.60 3.6 Growth*** The PRS REIT PRSR Open-market housing 102 70 4.00 5.7 Cut Residential Secure Income RESI Social housing 93 91 5.00 5.5 Growth Secure Income SIR Hospitals, leisure 405 250 16.30 6.5 Cut Supermarket Income SUPR Supermarket grocers 102 106 5.70 5.3 Growth Target Healthcare THRL Residential care 116 94 6.65 7.1 Unchanged Triple Point Social Housing SOHO Social housing 101 97 5.10 5.3 Growth Tritax Big Box BBOX Distribution centres 141 130 6.25 4.8 Modest cut Urban Logistics SHED Urban warehouses 120 122 7.75 6.3 Growth*** Warehouse REIT WHR Urban warehouses 101 103 6.10 5.9 Growth*** All EPS figures are on diluted shares *As of 19 March 2019 Hardman Sector Publication, priced 13 March 2019 **As of 18 May 2020 ***Historical dividends 100% or more covered by EPRA EPS Source: Company reports & accounts, company forward guidance on dividends, Hardman & Co Research estimates Many of the REITs that have not cut dividends, and that we see as unlikely to do so, are trading on yields of over 6%. This is a higher dividend yield than the average for the wider UK real estate sector, and, particularly, it is higher than the weighted average for the UK sector. We would also point to the table on dividend cover, below. It is important to note that most REITs in this report are issuing growth equity. This impacts dividend cover in the years during which investment takes place. Therefore, as such, there may be times when funds have been raised but not yet deployed into the pipeline that management has identified – known as "cash drag". A number of REITs where we anticipate growth in dividend per share have raised new equity over 2020 to date and, as such, the initial period post issue will see earnings diluted. May 2020 14
Safer harbour REITs: an update REIT recent financial track record Historical dividend REIT historical Historical loan Historical EPRA Share price Current Current market per share dividend cover to value ratio NAV/share 12-month high share price capitalisation Ticker (p) (%) (%) (p) (p) (p) (£m) AGR* 2.80 100 36 53.5 84 77 2,044 CSH* 5.30 100 27 107.9 102 102 598 ESP 4.45 88 33 110.2 104 60 361 DIGS 6.25 92 19 174.7 212 125 598 IHR* 6.17 112 7 106.8 115 96 303 LXI 5.75 102 20 124.3 140 100 521 PHP 5.60 100 44 107.9 165 158 1,910 PRSR* 4.00 110 21 95.0 100 70 346 RESI 5.00 54 36 108.6 100 91 154 SIR 16.30 94 32 431.1 470 250 809 SUPR* 5.70 86 32 97.0 109 106 502 THRL* 6.65 83 18 108.1 123 94 429 SOHO 5.10 67 31 105.4 105 97 339 BBOX* 6.25 96 30 151.1 160 130 2,218 SHED* 7.75 104 34 145.2 150 122 230 WHR 6.10 100 40 105.2 117 103 248 Prices as of 18 May 2020; *See Company earnings adjustments below Source: Company reports & accounts, Bloomberg Notes ► Dividend and cover: The historical dividend comprises the sum of the past two halves or four quarters. ► Historical ratio: EPRA EPS as a percentage of dividend declared per share. ► Market capitalisation: On the basis of shares issued, not diluted shares. ► For the purposes of dividend cover calculations, all EPS figures are on diluted shares and on an EPRA basis, pre-revaluations. Company adjustments ► AGR: LTV stated as historical figure, prior to 2020 equity raise. ► CSH: 87% last full year, 100% run rate last quarter. ► IHR: Dividend cover 82% on a cash basis; LTV 18%, including post-balance sheet asset purchases. ► PRSR: Dividend cover based on IFRS accounting. EPRA 2019 EPS 0.02p. Note the statement by the company at the recent results: "The interim dividend in respect of Q3 will be deferred for review in Q4 when the outlook is likely to be clearer." ► SUPR: LTV stated as historical figure, prior to 2020 equity raise. ► THRL: 95% dividend cover in most recent half year. ► BBOX: Latest quarter dividend cut to 1.5625p. A year prior, it was 1.675p. The historical dividend stated in the table above is four times the last declared dividend. The dividend in the last full year was higher, at 6.85p. The 6.85p was covered 96%. ► SHED: LTV stated as historical figure, prior to 2020 equity raise. May 2020 15
Safer harbour REITs: an update Dividend covers Above, we itemise dividend covers. Two points should be made: ► Overall, we attempt to calculate the share-weighted cover, i.e. when shares have been issued during the year, the dividends paid in certain quarters may be payable only on the shares in issue prior to the new shares. An example would include PHP. ► Further, on dividend cover, the PRS REIT statistic is given on the basis of IFRS EPS cover, and, were EPRA EPS to be used, the cover would be almost nil. Impact Healthcare's cover is based on the appropriate accounting, but Impact Healthcare itself highlights that the cash dividend cover is lower. It is still near 100% on that basis, and the cash drag effect of investing new equity is working through. Tritax Big Box has cut the quarterly dividend that it announced in April 2020. We believe the balance of probable outcomes in future quarterly dividends will be at least maintained at prior-year levels, with a reasonable opportunity to see the full- year dividend outcome as unchanged on the prior year. It is too early to estimate anything other than a modest cut in total 2020 declared dividends, we believe. The management track record in the quoted arena is a long and largely successful one. May 2020 16
Safer harbour REITs: an update Some appealing investment cases What is the detail driving some of the appealing investment cases? Whole new world? Over the past two months, it has become commonplace to assert that these are unprecedented times. A typical quote is "We are really in a totally unprecedented set of circumstances where there is no previous playbook." Investors still hold by the "previous playbook" – transparency (in both the types of assets held and the cashflows they will generate), consistency and value-for-money rents. For the real estate sector, the same kinds of REITs – those with a good chance of security of steady income growth – were outperforming in 2019 (and, indeed, before) and are outperforming now. The view strongly remains that they have the attributes to imply outperformance will continue. ► Yields on assets are attractive and, in most cases (see the detail in this report), the income is safe. The average NIY (net initial yield) for REITs here (non- weighted) is 100 bps above the All-Property index. ► Dividend yields, again, are typically 100 bps, or more, above the top 100 shares' historical 4.4% dividend yield. In many cases (again, see detail in this report), the dividend prospects (for modest growth) are safe. For the leading 100 shares in the UK, 2020 could well see a halving. ► Most REITs here should not be trading below NAV, on the bases above. Our valuation yardstick is, however, sustainable income and covenant strength, rather than NAV. The NAV rating accorded to such a relative "haven" is a reassurance. Dividend yields seem attractive, even before cuts to broader UK equity dividends. Better prospects on higher dividend yields For more context, we outline investor drivers on all REITs covered in subsequent sections of this report. All these REITs, bar LXi and Warehouse REIT, have reported that 97% or more of the March quarter (in advance) rent was paid on time. LXi's exposure to hospitality is unfortunate, but budget hotels will be among early "unlockers", and at least one of the two tenants is engaging positively in the situation. Budget hotels are facing a hit that is likely to be temporary, but the LXi share price performance indicates deeper-seated worries, which should prove unwarranted. LXi's income and NAV performance since flotation are strong. REIT description, share prices and dividends % rent NAV growth Historical Prospective Current share collected at** over past two dividend yield dividend REIT Ticker Investment focus price (p)* last quarter day years (% p.a.) (%) position Impact Healthcare IHR Residential care 96 100 3.5 6.5 Growth LXi LXI Managed property 100 67 6.7 5.8 Growth Primary Health PHP Primary medical 158 97 3.6 3.6 Growth Properties Residential Secure RESI Housing of 91 99*** 5.2 5.5 Growth Income social benefit Urban Logistics SHED Urban warehouses 122 93 11.8 6.3 Growth Warehouse REIT WHR Urban warehouses 103 82 3.5 5.9 Growth *As at 18 May 2020 **at or within a week ***Hardman & Co estimate Source: Company reports & accounts, company forward guidance on dividends, Hardman & Co Research estimates May 2020 17
Safer harbour REITs: an update Outperformance and positive prospects We published on these "safer harbour" This report follows our March 2019 report: "Secure income" REITs – Safe Harbour REITs in March 2019 Available. This listed 17 REITs that sought security of income. Of course, this is far from all plain-sailing. Here, we follow up on evolving story Three of the REITs listed in last year's report have, unfortunately, not found that desired security. AEW Long relied too much on the length of leases, and covenant strength disappointed. It is no longer listed. The two student REITs (and Unite) have fallen foul of the pressures created by COVID-19, and they have foregone significant rent, while strengthening their relationships with universities. They have sought to do the right thing – cancelling typically three or four months' rent. This indeed is "the right thing", but it is exceptionally painful to investors seeking income, and also seeking clarity about the relationships with counterpart institutions and tenants. Our main problem is the lack of evident clarity. Other REITs have seen some element of their income delayed or in doubt. The most notable – for us – is Secure Income REIT, with significant blue-chip leisure exposure. Some uncertainty remains. LXi's share price fall of interest, we LXi has some exposure to leisure via blue-chip budget hotels. Here, we consider that consider medium-term damage is seen as very limited, and it will, in due course, continue to be seen as such. This tenant profile, which has seen delays in rent collection, has resulted in a weak share price. LXi has a disciplined focus on investment characteristics, as opposed to backing a specific physical asset class. Immediately following, we list six REITs that we consider offer appealing investment cases at current price levels. These six are not the exclusive list of appealing opportunities. We see Target Healthcare and Tritax Big Box as noteworthy, and would point Target Healthcare and Tritax Big Box in readers towards our description of the positioning and prospects for all 16 in the UK… section below this one. Non-UK, European stocks, Tritax EuroBox and Yew Grove, are interesting long- income stocks, but are outside the scope of this report, which is analysing Sterling income stocks. …and Tritax EuroBox and Yew Grove in Europe (but outside scope of this report) Impact Healthcare Impact Healthcare invests in care homes. We like the sector dynamics and ratings. The shares offer an above-average yield and a discount to NAV. The dividend is covered in accounting, if not cash, terms, and the REIT has the benefit of low gearing and long RPI-linked leases. Investing in care homes, 19.7-year The primary source of acquisitions is through the operators themselves – so the WAULT, upwards-only RPI rents REIT starts off and retains a close, detailed, regular operational and financial watching brief. Many operators are effectively partnering with the REIT in order to expand the quantum and range of services in their estate. Leases are long-term, with a WAULT (weighted average unexpired lease term) of 19.7 years. Strong cashflow The 6.7% to 8.6% NIYs achieved on assets purchased do not reflect compromised quality. Rather, they reflect the detailed knowledge of, and constant contact with, the tenant base required. There has been no trend of rising or falling acquisition NIYs over time since the 2017 float. The NIYs do mean that financial gearing plays a small part in total returns, and we anticipate ongoing gearing will remain low. During COVID-19, rent payments have been almost faultless. May 2020 18
Safer harbour REITs: an update Strong operators who benefit from the Counterparty risk appears low, and this asset class is likely to be supported further REIT's financing by demographic and market trends. Clearly, 2020 has brought operational, human and financial strain. Counterparties are strong, and the general "tone" coming out of the first crisis does help prospects. 95% of staff are UK-originated. Rent is a fraction of the fee income, and is well-funded. Modern assets play a part in staff retention, as does expansion of specialist facilities (e.g. dementia-specific areas). It is the care home operator that pays the rent, not the elderly resident. Impact Healthcare is in constant contact with the operators; they are strong participants, well-resourced financially, with modern homes. Rent cover has been 1.8 times, on average. There remains high tenant concentration. 51% of the current roll derives from two tenants. However, the figure was 77% in 2018, and we anticipate further diversification. Tenant contact is very important – so we would not anticipate a mass-expansion in tenant numbers – rather, we would expect steady, constrained growth. Equity issuance, but no greater cash drag Impact Healthcare is growing significantly, deploying equity raised last year. For than 2019, so strong dividend cover a example, it is forward-funding the development of a new 94-bed care home to be operated by Prestige, one of the group's tenants. Growth assists specialisms, making feature the care home owner more resilient and attractive to occupiers and families. 2019 saw 39% growth in rental income (net). Notably, there was 7% growth in all (non- debt-related) expenses, so operational gearing is clear. In 2019, before the full benefit of capital deployment, the dividend was over 100% covered. This is a strong, cash- generative REIT. Private-funded care home fees have risen faster than RPI in recent years. In many cases, these fees will be supported by the release of home equity or other savings. With asset-price turmoil, it may be wise to assume moderated rises in privately funded fees – roughly a third of the portfolio. This should prove readily surmountable by Impact Healthcare. We also believe it will cause no meaningful problems for Target Healthcare. However, Target Healthcare's extent of uncovered dividend means that a likely dividend progression for Target Healthcare will be sideways in 2020, rather than the (modest) growth we estimate for Impact Healthcare. For the moment, this quite likely lack of all-important dividend progression – for just one year, 2020, – takes the edge off a strong investment story at Target Healthcare. LXi Since float in February 2017, LXi has achieved a 12.8% (to September 2019) annual accounting return. There has been a total 19.6% rise in NAV since float in February 2017. Note that this figure is calculated at 18%, excluding secondary share- issuance benefits. Regular asset recycling has proven the validity of NAVs. LXi has acquired at 5.8% NIYs, on average, and valuations now (historical) are 5.06%. Occupancy is 100%, and WAULT is 22 years to first break option. 77% income is RPI- or CPI- linked; all bar 4% of this has upwards-only escalators. We note that the 16.3% historical year EPRA cost ratio is modest, given the variety of sectors and forward- funding, and we anticipate lower ratios going forward, post the significant fund raise in 2019. COVID-19 has been a bump in the road. It is most important that all the portfolio charges relatively low rents. The largest sector is industrial, at 28%, for example. BCA, Bombardier and Stobart (not Eddie Stobart) comprise 7%, 7% and 4%, respectively. There are some smaller industrial tenants, but these are institutional-grade, e.g. Johnson Matthey and Brenntag, the German distributor. Other sectors comprise budget hotels (24%), healthcare (14%) and discount foodstores (10%), with small amounts in other areas, including car parks and care homes, in addition to a small exposure to coffee shops and pubs. Clearly, the hospitality exposure poses risks. May 2020 19
Safer harbour REITs: an update Budget hotels are well placed for 2021, Only 67% of rent due at end-March was received on time. LXi is the exception to and LXi share price fall offers opportunity the cohort of the six REITs we have selected, in that 2020 is a difficult year. Hospitality exposure may result in NAV reduction, but this would be seen as very much a one-off six (or so) months' missed income. Other tenants with smaller LXi exposure in "vulnerable" sectors comprise Greene King, Costa Coffee and Starbucks – all financially robust, with strong balance sheets and material cash holdings. As stated by the company on 6 April: "The final dividend is scheduled to be announced in May 2020, along with the Company's annual results, and paid in June 2020. This will meet the Company's dividend per share target of 5.75 pence for the year." Primary Health Properties Primary Health Properties (PHP) has increased its dividend in each of the 23 years since float. Its entire exposure is in primary medical assets, which are modern and purpose-built as the local health "hub". Income is 90% government-backed, with the remainder very secure. There is security, but there are also a number of drivers to financial returns improving further. That says it all, but to expand, five factors are highlighted: Rents accelerating – almost only sub- ► Rents are all upwards-only and effectively paid by governments in the UK or sector in market Republic of Ireland (RoI). RoI comprises 8% of the assets. Recent announcements state that rent rises now exceed 2% p.a., and the figure is set to remain at that level or – more likely – grow modestly. The drivers to that are technical, on an asset-by- asset basis, but the driver is a combination of catch- up and rising build costs, allied to "incremental specification increases." RoI boosts returns, and is ca.30% ► In recent years, ca.30% of asset purchases (or forward-funded developments, incremental investment where no redevelopment risk is taken) have been in RoI. Returns here are modestly higher than in the UK, and this skew to RoI growth is a driver of EPRA EPS growth. Reducing cost of debt, further ► Interest costs fell from 4.0% to 3.5% in 2019. There is clear scope for further falls, as facilities renew, because PHP has grown and the interest rate environment favours borrower refinancing, as does PHP. The most efficient REIT in UK, and getting ► The EPRA cost ratio, at 12% (including performance fee), is the lowest in the better UK sector, and this efficiency flows through to dividend-paying ability. Incremental purchases are on a significantly lower fee-basis than the average in the portfolio, so EPRA cost ratios should likely fall in the future. ► Put together, this gives clarity to DPS growth drivers and provides investors with a covenant strength that reasonably could be called near-gilt in quality. May 2020 20
Safer harbour REITs: an update Residential Secure Income All private sector rents are below-market, and all covenants are high. The blended 5.0% NIY is "in the pack", but there are clear drivers to rental growth. Housing with sub-market rents and high Since IPO, Residential Secure Income (ReSI) has assembled a portfolio of 2,677 covenants homes, comprising 166 (22.3% by value) shared ownership homes, 289 (10.8% by value) local authority housing units and 2,222 (66.8% by value) retirement rental homes. The portfolio is in the south east of England. The blended NIY is 5.0%, with shared ownership homes below the average. Shared ownership rents receive specific subsidies from the government, but, over the long term, these taper off. Local authority housing is sub-open-market. Retirement housing per sq. ft. like-for- like location rents at usefully below open (non-age-restricted) housing. This is despite the demographics boosting demand and supply being constrained. The portfolio rent continues to be secure amid COVID-19, with 98% of April rent collected by 27 April 2020, in line with normal performance, with further rent to be received from Local Authorities who pay at the end of the month. 2019 and 2020 ramp-up – fully visible 2019 (full-year to September) reported significant growth in operating earnings per and understood by market share, to 2.9p (30 September 2018: 0.9p), reflecting the ongoing ramp-up of rental income through 2018 and 1H'19. 1H'20 has seen small purchases of shared ownership properties, but COVID-19 has delayed 2H'20. Profit growth is set to resume, with deployment. This makes a minimal dent in 2020 earnings. Given the prospects of ReSI and its achievements to date, we believe investors will rightly see through to 2021, when fuller deployment will have been achieved through the year. Operational gearing coming through and The REIT is very much still in acquisition mode, so returns have a built-in escalator significantly more to come into 2020 and beyond. Historical dividend cover was only 54%, but this belies the current and following year potential. For instance, in the 2019 fiscal period, property operating expenses amounted to 16% of gross rents, down from 24% in the previous year, which illustrates the operational gearing coming with capital deployment. We consider the mix of asset classes, below-market rents, affordability of rents and diverse but long-dated leases to give high visibility to rent collection, earnings growth and asset appreciation. Variety of benefits from affordability and ReSI's rental income is supported primarily by residents' pensions or housing welfare high covenants subsidy systems, including leases to local authorities. Rents are below-market in shared ownership and are affordable in the retirement segment, where pensioner income is unfluctuating and the desire stay in situ is high. Local authority housing rents are around market level, providing a saving to the local authority versus other emergency accommodation, such as hotels and bed & breakfast accommodation. While the historical LTV is 36.3%, the asset quality warrants higher levels. The eventual overall target stands at 50% LTV. 90% of ReSI's debt is very long-term in nature, with only £14.5m needing to be refinanced before 2043. Crucially, there is significant social value added in at least four ways; we expand on this in a later section of this report providing ReSI details. Retirement assets currently dominate the portfolio, and deliver a leveraged yield of 6.9%. On balance, there is no COVID-19 effect. The local authority housing portfolio produces a leveraged yield of 7.2%, and an unleveraged yield near 5%. A lease with a 7.0-year WAULT is in place to Luton Borough Council. May 2020 21
You can also read