Last week, the BRXS investors of the Landlust property in Amsterdam received their first interest payout, consisting of the property’s net rental income for the first quarter of 2022! A total net rental income of €2.881 was distributed to all investors, corresponding to annualised return of 5.2% on their investment.
Transparency is an important part of our platform so every quarter we share a detailed overview of all the financials for each investment property. We found it a good idea to share such an example on our blog as it provides a good look at how investing with BRXS works and how returns are calculated.
How BRXS works: When you buy a brxs note in a property, it gives you the right to receive a 1) quarterly interest payment consisting of the rental income and 2) the repayment of your investment including the potential appreciation of the property at the end of your investment.
With BRXS you are able to easily invest in real estate, benefit from rental income and property appreciation while avoiding all the burdens of being a landlord.
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Now, let's dig into how net rental income is calculated and distributed:
The net rental income is the total rental income minus all costs such as maintenance, city taxes, insurance and mortgage payments. The Landlust property has been rented out since the first day (12th January 2022) and here is a detailed overview of all the income and expenses in the first quarter:
So the total net income of €2.881 is what was distributed to all investors and corresponds to an annualised return of 5.2% on their investment.
We are slightly above the estimated rental income with these results and it may be even higher in the future because the maintenance reserves of the property are very strong (€7.173) and no major maintenance is expected in the next few years.
Now what about appreciation?
As an investor in a Brxs property, you will also receive your share of the potential gains made when the property is sold. Regarding the Landlust property, we cannot (yet) put a specific figure on a possible increase in value because we have not had a recent official valuation carried out (we do this at the end of each year and not quarterly).
But we can look at the real estate market developments in the Netherlands:
The investment services of BRXS Properties are provided by Brxs Properties B.V, registered with the Dutch Chamber of Commerce in Amsterdam under number KvK Number: 89185188 and has its headquarters at Singel 542, 1017 AZ Amsterdam. BRXS Properties does not fall under the supervision of the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten - AFM). BRXS Properties relies on a Dutch law exemption to the obligation to publish an approved prospectus. This exemption applies when the issuer of the notes offers notes up to a total offer consideration of less than EUR 5 million. BRXS Properties complies with all requirements in relation to the exemption from the prospectus obligation and always strives to operate with full transparency to all of its investors.
Het is belangrijk om voor jezelf te bepalen of de beleggingsopties die op het BRXS Properties platform worden aangeboden bij jou passen. Het is daarom raadzaam om zowel de risico's als de kansen goed af te wegen. Beleggen brengt risico's met zich mee, zoals marktrisico, rendementsrisico, verhandelbaarheidsrisico en leegstandsrisico. De waarde van je belegging kan zowel dalen als stijgen. Je kan een deel of alle beleggingen die je via BRXS Properties doet, verliezen. In het verleden behaalde resultaten zijn geen betrouwbare indicator voor toekomstige prestaties. Brutohuur, rente en potentiële waardevermeerdering kunnen lager zijn dan voorzien.
About the AFM banner
Brxs does not fall under the supervision of the AFM as it relies on an exemption from publishing a full prospectus. BRXS complies with all legal requirements, issues a full information document per investment property that is shared with AFM and always operates in full transparency with all of its investors.
BRXS is applying for a full AFM license in 2023 as it extends its activities.