{"id":11827,"date":"2023-01-31T11:00:00","date_gmt":"2023-01-31T11:00:00","guid":{"rendered":"https:\/\/www.londonhouseexchange.com\/blog\/?p=11827"},"modified":"2025-07-30T05:53:47","modified_gmt":"2025-07-30T04:53:47","slug":"january-2023-portfolio-update","status":"publish","type":"post","link":"https:\/\/www.londonhouseexchange.com\/blog\/january-2023-portfolio-update\/","title":{"rendered":"January 2023 Portfolio Update"},"content":{"rendered":"\n

Below you will find our Q4 2022 performance announcement. This includes updated financial information on all properties, property disposals, dividends and other important information for investors. <\/p>\n\n\n\n

To ensure that all clients have the opportunity to consider this announcement, the LHX Exchange will be suspended as usual, for 3 working days, re-opening at 10am on Friday 3 February 2023.<\/span><\/p>\n\n\n\n

Since our rebrand to London House Exchange and announcement of Better\u2019s significant direct investment in the Exchange, we have seen a marked improvement in trading volumes and pricing.<\/p>\n\n\n\n

Through the LHX All-Share Investment Plan<\/a>, clients are able to invest alongside Better: maximum diversification, best execution and best pricing available on the market. With the Exchange currently trading on average at a 25% discount to independent valuation, significant client capital has already been committed to the first month’s Investment Plan.<\/p>\n\n\n\n

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Important upcoming dates <\/strong><\/p>\n\n\n\n

31 Jan 11.59pm<\/strong><\/td>LHX All-Share Investment Plan closes to commitments for February deployment<\/td><\/tr>
1 Feb 12pm (approx)<\/strong><\/td>5-year anniversary processes: Lydan House<\/a>, The Warehouse<\/a>
Special measures votes: Red Lion Court<\/a>, Tower Mint<\/a>, Leeds Road<\/a>, Anchor Point<\/a><\/td><\/tr>
3 Feb 10.00am<\/strong><\/td>LHX Exchange reopens for trading
Better begins direct investment in Exchange and LHX All-Share deploys<\/td><\/tr>
14 Feb 11.00am<\/strong><\/td>5-year anniversary processes: votes end, block-listings commence
Special measures votes: votes end, Equity Fundraises commence (if voted for)<\/td><\/tr>
28 Feb 11.00am<\/strong><\/td>5-year anniversary processes: block-listings close
Special measures votes: Equity Fundraises close<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Today\u2019s announcements<\/strong><\/p>\n\n\n\n

1. Portfolio performance<\/p>\n\n\n\n

2. Dividend distributions<\/p>\n\n\n\n

3. Equity Fundraises and other measures<\/p>\n\n\n\n

4. Leasehold changes update<\/p>\n\n\n\n

5. 5-year anniversary disposals<\/p>\n\n\n\n

6. Disposals of individual units within blocks<\/p>\n\n\n\n

7. Property development loans<\/p>\n\n\n\n

8. Properties with fire safety issues <\/p>\n\n\n\n

9. Upcoming quarterly announcements<\/p>\n\n\n\n

<\/div>\n\n\n\n

1. Portfolio performance<\/strong><\/p>\n\n\n\n

Today we have updated every property\u2019s performance, as we do each quarter, including net income, mortgage details and net cash position. You can find this toward the bottom of every property’s respective investment page, in the ‘Financials’ section.<\/p>\n\n\n\n

In the 12 months to December 2022, the residential portfolio has delivered 6.0% rental growth across 346 units (this does not include units that we have vacated for sale). This performance is over 40% above the UK average of 4.2% (ONS Index of Private Housing Rental Prices<\/a>). To put our portfolio\u2019s performance into context, this increase of 4.2% represents the largest annual percentage change since this data began being collected in 2016. <\/p>\n\n\n\n

As discussed in detail in previous quarters, strong rental performance is being offset by large increases in the cost of borrowing. The average mortgage rate has increased by over 100% in the 12 months to December 2022, from 3.1% to 6.3%. A further increase is expected on 2 February from the Bank of England. <\/p>\n\n\n\n

To mitigate the impact of mortgage interest, we have a significant programme of property disposals across the portfolio. Since December 2021, the average loan-to-value (LTV) ratio has reduced from 52% to 46% today.<\/p>\n\n\n\n

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2. Dividend distributions<\/strong><\/p>\n\n\n\n

From 6 February, we will be distributing dividends for 15 properties at an average yield of 4.3%. A full list of these properties is available here<\/a>.<\/p>\n\n\n\n

We will continue to drive net rental yields up and mortgage LTVs down, but in the short term, a majority of properties will continue to face mortgage interest headwinds that will preclude dividend distributions.<\/p>\n\n\n\n

<\/div>\n\n\n\n

3. Equity Fundraises and other measures<\/strong><\/p>\n\n\n\n

The following properties successfully raised fresh equity in Nov-Dec 2022 and strengthened their financial positions. New shares were issued, and mortgages and deficits (where applicable) were reduced.<\/p>\n\n\n\n