Portfolio

Diversification Score

Score portfolio diversification across sector, geography, tenant and lease expiry.

Intermediate

Introduction

Who this is for: Portfolio investors assessing concentration risk across several dimensions.

Why it matters: Diversification is not just about owning more properties. Ten offices in one city let to firms in one sector is a concentrated portfolio however many buildings it contains. Real diversification means exposure that does not all move together.

Typical scenario: An investor with eight assets checking whether the portfolio is genuinely diversified.

Common mistakes:
  • Counting properties rather than measuring exposure by value.
  • Diversifying by building while remaining concentrated by tenant covenant or sector.
  • Ignoring lease expiry clustering, which concentrates risk in time rather than space.

Inputs

Sector Exposure

sectors

%

Geographic Exposure

regions

%

Tenant & Lease

tenants

%
%

Analysis

The portfolio scores 57/100 — moderately diversified. Sector 53, geography 40, tenant 76, lease expiry 60. The strongest dimension is tenant; the weakest is geography, which is where additional diversification would have most effect.

This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.

Create a free account to keep this analysis, compare it against other projects, and pick up where you left off on another device.

Create free account →

Sensitivity Analysis

Export

Live Results

Diversification Score

57.00x

Rating

Moderately diversified

Weakest Dimension

Geography

Strongest Dimension

Tenant

70% of value sits in one region. Regional economies move together — this is one of the most common hidden concentrations in property portfolios.
40% of income expires in a single year. That clusters risk in time: a weak letting market in that year affects most of the portfolio at once. Staggering renewals is usually the cheapest diversification available.
55% in one sector means sector-specific shocks hit most of the portfolio.
Sector Score53.00x
Geography Score40.00x
Tenant Score76.00x
Expiry Profile Score60.00x