Aviva Investors Secure Income REIT plc
On a fully invested and geared basis, the Company is targeting a secure dividend yield of 5.0% p.a. by reference to the issue price, which the Company will seek to increase broadly in line with inflation, and a total return of 7.0% p.a. over the medium-term. This is a target only and not a profit forecast.
Introducing Aviva Investors Secure Income REIT
Renos Booth and Luke Layfield discuss the benefits of Real Estate Long Income, what investors can expect to receive and why Aviva Investors are well placed to deliver on this strategy.
Some risks to keep in mind
The value of investments (and income) can go down as well as up and the extent of possible fluctuations are likely to increase in line with the amount of risk taken. Investors may receive back less than the amount originally invested.
The Company’s investments will be illiquid, which means they may be difficult for the Company to sell and the price achieved may be lower than prevailing valuations, causing the value of the portfolio to fall.
The value of a property is a matter of the valuer’s opinion rather than fact. Property may sell for less than it is valued which could reduce fund value.
Property related securities
The market value of the shares may fluctuate independently of the net asset value per share, and may trade at a discount to net asset value. The Company may be unable to make acquisitions (including the target portfolio). The Company can offer no assurance that it will be able to identify and make investments that are consistent with its investment policy or that it will be able to fully invest its available capital. The Company’s due diligence may not identify all risks and liabilities in respect of an acquisition.
The Company may not meet its investment objective or achieve its targeted returns. There can be no assurance that any dividends will be paid in respect of any financial year or period and no guarantee as to the level of any future dividends to be paid by the Company. The Company is newly formed and has not yet made any investments. The Company’s targeted returns are based on estimates and assumptions that are inherently subject to significant uncertainties and contingencies, and the actual rate of return may be materially lower than the targeted returns.
If the Company fails to qualify, or remain qualified, as a REIT, its rental income and gains will be subject to UK corporation tax. The Company’s status as a REIT may restrict distribution opportunities to Shareholders.