Long term, indexed linked income streams are one of the key features of Keills Property Trust. Our investment strategy relies on all tenants occupying the properties held by Keills Property Trust. The property below is an example of a long (35 year) lease which is linked to the retail price index within certain caps and collars. This feature, alongside the requirement to meet the tenant covenant tests, provides a long, secure and real rental income stream to be generated.
The chart below looks at how the Trust’s income varies over time and compares this against the industry standard benchmark as measured by MSCI/IPD. The triangular area between the two lines measures the additional income that Keills Property Trust will produce ignoring all future rental increases, even though these are contractual increases. We believe this markedly understates the additional income produced by the investment strategy.