SPR Seminar - Income Risk: Pricing Income Security, 19 June 2024

In 2023 Matt Richardson on Income Analytics wrote a paper regarding Pricing Tenant Income Risk for DCF Valuations. Over the years Matt has worked on analysing credit scores and monitoring credit performance to create an ‘early warning system’. This work has progressed through the Incans service. In the paper, Matt Richardson adds in discussion on how income risk and credit scores impacts valuations, aiming to introduce more sophisticated, standardised and predictive tenant income risk rating methods. As we all know, the security of income is the basis of value for a property asset. Matt proposes that data on the future probability of tenant default can be employed by valuers in their cashflow modelling as a standardised approach to risk pricing. Do the panellists agree?

How can we meet the growing demand for both a standardised way to measure income security as well as accurately reflect that calculation in the valuation process? In this in-person seminar we not only hear from the speaker Matt Richardson, we also hear from panellist Mo Ali who will provide a view from a lender’s perspective. He will be followed by Manreet Randhawa who manages a number of Nuveen’s UK balanced funds on how she sees and manages Income Risk and the impact on the valuations in her funds. The event is chaired by Kim Politzer, who actively looks as Income Risk in the works that she does at Fidelity.

This seminar is an open discussion about the pros and cons, strengths and weaknesses of the current and proposed ways to include income risk into DCFs. What are the pitfalls? What are the limitations of this approach, assuming there are some? What are other considerations we should take into account? If you are curious to find out, register now for this event.

Mohamed Ali, Debt Research Analyst, Savills Investment Management
Mohamed is the debt research analyst at Savills Investment Management (SIM), with a particular focus on providing research for DRC SIM.

In his debt research analyst role, Mohamed is responsible for developing market intelligence and quantitative tools that provide the team with analytical research and insight on market, asset and regional trends. Mohamed is also responsible for the production of thought pieces and whitepapers to inform internal and external stakeholders.

Prior to this Mohamed was Research Associate in the Real Assets team at Aviva Investors with particular focus on developing quantitative research across Real Assets to improve investment decision-making, and ensure new products meet the needs of a broader range of customers. His research expertise spanned all debt strategies across corporate, real estate and infrastructure.

Kim Politzer, Director of Research, European Real Estate, Fidelity International
Kim is leading the European Real Estate Research and Quants team. She is responsible for developing the research, strategy and risk management processes for the FIL European real estate funds. Her team of four leverage in-house and third-party data sources to develop strategic insights and quant tools to support the investment processes for the real estate team. Kim sits on the Real Estate Investment Committee.

Kim has extensive research experience supporting a wide range of investment styles and strategies in both commercial and alternative real estate sectors. She holds an MA in geography from the University of California, Los Angeles and an MSc in Econometrics and Forecasting from London Guildhall University (now part of London Metropolitan University).

Manreet Randhawa, Fund Manager, UK Diversified Funds, Nuveen Real Estate

Manreet is a director with fund manager responsibilities on a segregated mandate on Nuveen Real Estate's U.K. Property platform. She works across all sectors and sits within the diversified team. In her current role she undertakes investment management, transactions, investor updates, strategy development, liquidity management and is responsible for portfolio analysis.

Since joining the company in 2010, Manreet has been involved in several key projects including the merger of the Old Mutual Property platform into the Janus Henderson U.K. Property platform. Manreet was also involved in the growth of the mandate from £800m to £4.2bn, including the fund’s successful sale in 2022.

Manreet graduated with a B.Sc. (Hons) in Geography from King's College London and a Master's in Real Estate from the University of Reading. Manreet also holds a certificate in Sustainable Real Estate: Creating a better built environment from the University of Cambridge’s Institute of Sustainability leadership.

Matthew Richardson, Co-Founder & Chief Executive Officer, Income Analytics Ltd
Matthew Richardson is the Co-Founder & Chief Executive Officer at Income Analytics Ltd. He has more than 35 years experience of working in the European, US and Asian property markets.

Matt was previously Director of Research - European Real Estate, at Fidelity International in London. He joined Fidelity in March 2007 and was responsible for establishing the award winning research, strategy and risk management processes for their European real estate funds. Prior to joining Fidelity, he was Head of Property Finance at Experian Business Strategies in the UK. Between 2000 and 2003, he was Executive Director at Freeman Publishing Inc, delivering business information solutions to the property sector.

Between 1996 and 2000, Mr Richardson was founder and Managing Director at Property Market Intelligence Limited in Hong Kong. Prior to that, he held a variety of roles, including Director Asia Operations at Dow Jones Teleres; Regional Research Director - Asia Pacific at Brooke Hillier Parker (now CBRE); Manager, Central London Research Team at Hillier Parker (now CBRE) and Senior Analyst at MSCI IPD in the UK.

Matt is a visiting lecturer at Oxford Brookes University in the UK and has also lectured at the London Business School, Maastricht University, London School of Economics, UCL and Cambridge University in recent years. He is a regular speaker and panellist at industry events.

6/19/2024 8:30 AM - 10:00 AM
GMT Daylight Time
Savills (UK) 33 Margaret Street LONDON, W1G 0JD UNITED KINGDOM

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