"Steve Haywood"
<[EMAIL PROTECTED]> wrote:
>On 22/10/06, Adrian Stott <[EMAIL PROTECTED]> wrote:
>>
>> "Susan Burchett"
>> <[EMAIL PROTECTED]> wrote:
>>
>>
>> It has managed to grow the portfolio substantially since.
>
>No. What it has done is made is made considerable disposals at the same time
>as making new aquisitions. It sells lock cottages etc, it buys bits of
>dockland. Whether this represents a 'growth' in the portfolio is impossible
>to say, since the portfolio is being constantly revalued. Thus it may be
>that the current holding of 1700 propertiers worth £520 million is actually
>worth less in capital terms than property it may have held in the past
>estimated at today's prices. I have a suspicion this might be the case since
>current investment policy is based on income not capital appreciation.
AIUI (confirmation, Eugene?) BW manages its investment property using
the conventional principle that real capital value must be maintained
or increased as the *first* priority, and income generated and taken
second.
There is a conventional practice for comparing such a portfolio with
how it was at some chosen previous time. Just boring bookkeeping
really -- no clever stuff. This is to appraise all the properties at
market value (i.e. what they would fetch if sold) in both cases, using
market parameters current at the time of the valuations, and adjust
the total value of one (usually, the past one) by the inflation that
has occurred since the chosen past date, and by any capital added to
or removed from (i.e. not reinvested in) the portfolio during that
period.
My impression (I'm too lazy to do the tedious investigation) is that
the value of the portfolio has been growing steadily, as well as
providing useful income (again, confirmation, Eugene?).
Adrian
Adrian Stott
07956-299966
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