Throughout this year we have added (figures include under contract ) a number of ‘off market’ deals, the market for acquiring attractive freeholds has remained challenging. Opportunities are few and far between as the turnover on assets is low, this is a trend we now expect to be here to stay for the long term. Our strategy has proven resilient and income accretive in the face of significant macro challenges across the wider property market. Our portfolio strength has yet again been unpinned by strong tenant demand and low vacancy rates, this has positively influenced rent reviews, 12 month trailing gross rent review increases on a mean basis are 15 % higher, positively impacting rent on stream with a year on year increase of 8.3%, the portfolio is now 95% let with further lets in the pipeline on existing vacant stock. We have also purchased a significant number of occupied assets which will further add significant rent on stream.
Of late there has been a negative shift in sentiment towards commercial property yields as a result of various political and economic outcomes, we see no threat to our continued growth in rent roll and capital increasing initiatives. Across the wider property market there was no surprise in fact it was widely anticipated here that there would be turmoil and subsequent freezing of property funds as investors withdrew their money, post EU membership referendum vote, feeding the naysayers sentiment on a commercial property yield bubble. The fundamental structure of open ended real estate funds is flawed in its capital structure and more importantly the disparity and inverse relationship between short term investment and the paradigm of successful long term investment in real estate.
We will continue with our long term investment tenets and focus intently on continued rental growth within the current portfolio and look for further opportunities to create value.