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INCANS
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What is INCANS ?
Unlike traditional credit risk solutions INCANS, powered by Income Analytics, supports simple, credible reporting of portfolio income quality and tenant risk to investors and financiers with globally standardised measures and real-time monitoring and pricing of income risks.
INCANS enables investors to proactively measure, quantify and manage income risk with intuitive dashboards, tailored scenarios for tenant default and lease events, bond-equivalent rating scores, and a proprietary global tenant grading system, providing a common, standardized language across pan-regional teams and investment strategies.
Income Analytics Video
Understanding Tenant Default Risk with Income Analytics
Watch this 1 min video to better understand what INCANS is and how it can help address the rising concerns around tenant default.
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Key features - INCANS 2023
Key features of INCANS
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Real time and future focused analysis
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Intuitive dashboards show property level and portfolio lens
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Single bond-equivalent rating provides comparability across asset classes
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Offers a scientific approach to quantifying cashflow and tenant risk
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Facilitates modeling of lease events’ impacts on future cashflow and asset value
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Supports asset selection, due diligence, portfolio sustainability and investor relations
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INCANS in action
How are different investors using INCANS ?
Asset Management
During a Pan-European Core fund build-up it was possible to monitor individual tenant credit risk, but as the fund grew it was increasingly difficult to keep track (such as during lease negotiation) in order to inform proactive asset management. INCANS enables 24/7 monitoring of financial health and default probability of tenants, assets and the fund. The ReWind feature enables access to historical performance and alerts on score changes are available across the team. The Due Diligence application provided long-term probability of failure analysis for prospective assets and tenants.
Investor Relations
A European Fund Manager was launching a core fund vehicle and needed to demonstrate enhanced tenant and asset risk monitoring capability that would resonate with their investors. “[INCANS] is a great marketing tool to tell investors how we are monitoring.. income risk…and be able to message where our strengths are.”
Risk Management
A UK Portfolio Manager took significant time to consolidate individual tenant risk reports across a large portfolio. Covid-19 increased the burden of investor and lender income risk forecasting. INCANS provided accurate quantification of income risk, and the ability to forecast long-term probability of tenant failure. “[INCANS] is clear, well presented, a really useful analytics tool. It would take us weeks to produce something half as effective internally.”
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Featured content
Featured content
Real Estate’s Income Risk in the Wake of COVID-19
COVID-19 has weighed heavily on the financial positions of companies that hold leases for commercial real estate. Property investors can track the covenant quality of their tenants and translate it into a probability of default over the length of the lease.
How Does Income Risk Differ Across Industry Sectors?
The INCANS® Top 200 Averages calculate the % probability of tenant default for the top 200 companies in each of the 83 x SIC 2 industry code types across a particular geographic region. These scores are available to all MSCI INCANS clients.
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