Building up: Rising non-residential property yields are expected to support revenue growth

The industry generates revenue primarily from the fees that industry operators charge for managing property portfolios, which is calculated as a percentage of net asset value. Firms also charge entry and exit fees when investors purchase or sell units, which are also included in industry revenue. Therefore, industry revenue is directly affected by changes in net asset value. The industry expanded during the first three years of the past five-year period as non-residential property prices trended upwards and rental yields increased. Fund flows into the industry also improved. These factors positively influenced net asset values and industry more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Revenue declined in 2016-17 as economic uncertainty caused investors to withdraw funds
  • The automatic enrolment scheme, introduced in 2012, has supported funds flows from pensions
  • Non-residential property yields are anticipated to continue to rise, supporting industry revenue growth
  • Industry Report - Industry Investment Chapter

    The level of investment required is determined by comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs indicate a high level of investment in depreciable assets such as buildings and equipment, and high capital intensity. Conversely, comparatively high wage costs indicate high labour intensity.The industry has a very low level of capital intensity, with an estimated capital-to-labour ratio of 1:39.44 in 2017-18. This indicates that for every £1.00 spent on capital, an estimated £39.44 will be spent on labour. The industry is reliant on highly skilled investment managers in order to generate attractive returns for investors. As a result, they command very high salaries. Mea...purchase to read more.

    Additional Insights for the Property Unit Trusts Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Property Unit Trusts Industry are

  • Having a good reputation
  • Highly trained workforce
  • Having a clear market position
  • IBISWorld analysts also discuss how external factors such as residential property index and Business confidence index in the Property Unit Trusts industry impact industry performance..

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    What's in this report

    What is the Property Unit Trusts Industry?

    This industry comprises property unit trusts, which have an open-ended share capital structure where units can be bought and sold directly through the fund manager. Property unit trusts hold, maintain and manage property portfolios for investment purposes. Unit trusts, real estate investment trusts and open-ended investment companies are excluded from the industry.

    Industry Products
  • Diversified portfolios
  • Retail portfolios
  • Office portfolios
  • Industrial portfolios
  • Industry Activities
  • Fund management
  • Asset investment
  • Portfolio structuring
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • residential property index
  • Business confidence index
  • Gross national savings rate
  • House price index
  • Total online expenditure

  • Current Performance
  • Industry trends
  • Fund flows dry up
  • Tax advantages and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Property yields
  • Investor interest
  • Potential disruptions
  • Margins improve
  • Table: Property Unit Trusts Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Property Unit Trusts Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance
  • Pension Funding
  • Consumers

  • Key Selling Industries
  • Estate Agents
  • Financial and Insurance Activities
  • Legal Activities

  • Products & Services
  • Diversified portfolios
  • Retail portfolios
  • Office portfolios
  • Industrial portfolios
  • Other
  • Chart: Property Unit Trusts Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Pooled nominees
  • Individual investors
  • Other
  • Chart: Major Market Segmentation for the Property Unit Trusts Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Property Unit Trusts

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Property Unit Trusts Industry

  • Industry Globalization
    Standard Life Investments Ltd, M&G Real Estate Limited,
  • Table: Standard Life Investments Ltd - financial performance
  • Table: M&G Real Estate Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Property Unit Trusts Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Property Unit Trusts Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Closed-Ended Fund
  • Collective investment schemes where all the shares the fund issues are issued at the outset. Any subsequent trading of the shares occurs between investors.
  • Net Asset Value
  • The value of a trust's assets less the value of its liabilities.
  • Open-Ended Fund
  • Collective investment schemes where shares can be issued and redeemed at any time through investors buying or selling shares directly from the fund.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Property Unit Trusts market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Property Unit Trusts:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Property Unit Trusts market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Property Unit Trusts, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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