Investing in property focused companies gives investors exposure to the property market without needing to invest in and manage properties directly. Equally, it allows greater diversification in terms of geography and income, for example, from rental yields, capital gains or a combination of the two. Investing in quoted or listed securities on NEX Exchange, investors have the flexibility of access to live prices, liquidity and market makers. On NEX Exchange, investors can benefit from tax exemptions offered by the UK government aimed at helping fuel small business growth. These range from capital gains and inheritance tax reliefs to being able to invest using your Individual Savings Account allowance.
Listing a Real Estate Investment Trust (REIT) on NEX Exchange is a tax efficient way of gaining exposure to the property sector since REITs are exempt from capital gains and corporation tax. Walls & Futures REIT [NEX:WAFR] recently made their first supported housing investment, improving their net asset value by 4.4 per cent. They also joined the Social Stock Exchange. With their next fundraise opening soon and partners ranging from local authorities to charities, Walls & Futures REIT gives investors looking at social impact exposure to this sector.
Ace Liberty & Stone [NEX: ALSP] recently announced its annual results. The Group's property holdings grew 32 per cent to over £38.9m and pre-tax profit increasing to £1.1m from £0.6m the previous year. Ace continues to grow their portfolio making further purchases totalling £10.25m in Margate and Barnstaple, enabling access to investment in these areas .
By contrast VIA Developments [NEX:VIA1] has issued a debenture on NEX Exchange and currently pays investors seven a per cent coupon as they leverage debt finance to expand their property development portfolio. Being quoted on NEX Exchange has meant that these securities are also eligible to be included in Self-Invited Pensions (SIPPs) and Individual Saving Accounts (ISAs). To see the full range of debt and equity investments available in the property sector, visit nexexchange.com/companies.
Patrick Birley is chief executive of NEX Exchange