Social Housing Reit Plc · LSE:SOHO
Social Housing Reit — FY2024 Earnings Presentation
50 slides from Social Housing Reit's earnings presentation, March 2025
Slide 1: Full Year Results Presentation
Full Year Results Presentation SUPR Primary 1 #405268 For the 12 months to 31 December 2024 PROFESSIONAL INVESTORS ONLY
Slide 2: Agenda and presenting team
Agenda and presenting team Introduction Financial results The sector Ben Green Adrian D’Enrico SUPR Primary 1 Principal Managing Director Our portfolio #405268 Case studies Strategic outlook Q&A Michael Carey Natalie Markham Managing Director CFO 2
Slide 3: Atrato Partners appointment
Atrato Partners (“Atrato”) appointment Appointed as AIFM effective from 1st January 2025 Fee SUPR now Primary 1 based on market capitalisation #405268 Material cost savings of c.£1.9m p.a.(1) Operational team and data transferred successfully (1) Cost-saving calculation based on the FY2024 managemen
Slide 4: Atrato Group
Atrato Group Future-focused, alternative Multi-disciplinary investment management platform social housing team leadership Fund Management Asset Management Ben Green Steve Windsor Natalie Markham Principal Principal CFO SUPR Primary 1 Adrian D’Enrico Michael Carey #405268 £2.6bn Managing Director Man
Slide 5: We take a different approach to SSH
We take a different approach to SSH This is operational, residential real estate SUPR Primary 1 Real estate fundamentals are key #405268 Resident occupancy drives income 5
Slide 6: How we can restore investor confidence
How we can restore investor confidence Proactive and SUPR PrimaryOpen 1 and Restructuring decisive asset #405268 transparent income to management disclosure enhance security Beach Road, Littlehampton 6
Slide 7: Financial results
Financial results SUPR Primary 1 #405268 Great North Road, Doncaster 7
Slide 8: Financial highlights – year to 31 December 2024
Financial highlights – year to 31 December 2024 93% 5.4p 0.99x Adjusted Rent Adjusted dividend collection EPS cover(1) SUPR Primary 1 #405268 £626m 99p 38% Portfolio EPRA NTA Net loan to value per share value(2) Past performance is not indicative of future results. Hirstlands Drive, Wakefield All fi
Slide 9: Net rental income up by 2%
Net rental income up by 2% Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million Net rental income 35.9 35.2 +2% Admin, management fees & other expenses (8.4) (8.2) Finance expense (7.5) (7.5) SUPR Primary 1 EPRA earnings #405268 20.0 19.5 Adjusted EPRA earnings 21
Slide 10: 3% increase in EPRA earnings
3% increase in EPRA earnings Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million Net rental income 35.9 35.2 Admin, management fees & other expenses (8.4) (8.2) Finance expense (7.5) (7.5) SUPR Primary 1 EPRA earnings #405268 20.0 19.5 +3% Adjusted EPRA earnings
Slide 11: 16% increase in adjusted EPRA earnings
16% increase in adjusted EPRA earnings Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million Net rental income 35.9 35.2 Admin, management fees & other expenses (8.4) (8.2) Finance expense (7.5) (7.5) SUPR Primary 1 EPRA earnings #405268 20.0 19.5 Adjusted EPRA ear
Slide 12: Dividends covered on a cash basis
Dividends covered on a cash basis Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million Net rental income 35.9 35.2 Admin, management fees & other expenses (8.4) (8.2) Finance expense (7.5) (7.5) SUPR Primary 1 EPRA earnings #405268 20.0 19.5 Adjusted EPRA earnings
Slide 13: Gross rental income impacted by Parasol
Gross rental income impacted by Parasol Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million Gross rental income 39.1 39.8 -2% Expected Credit Loss (“ECL”) (3.3) (4.6) Other income 0.1 - SUPR Primary 1 Net rental income #405268 35.9 35.2 Administrative and other e
Slide 14: Net rental income impacted by My Space arrears
Net rental income impacted by My Space arrears Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million Gross rental income 39.1 39.8 Expected Credit Loss (“ECL”) (3.3) (4.6) Other income 0.1 - SUPR Primary 1 Net rental income #405268 35.9 35.2 +2% Administrative and
Slide 15: Overheads and finance costs consistent
Overheads and finance costs consistent Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million Gross rental income 39.1 39.8 Expected Credit Loss (“ECL”) (3.3) (4.6) Other income 0.1 - SUPR Primary 1 Net rental income #405268 35.9 35.2 Administrative and other expens
Slide 16: Targeting material cost reduction
Targeting material cost reduction Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million Gross rental income 39.1 39.8 Management fees (4.7) (4.7) Admin, management fees & other expenses (3.7) (3.5) Termination fees (3.3) - SUPR Primary 1 EPRA costs #405268 (11.7) (
Slide 17: Improved dividend cover
Improved dividend cover Twelve months to Twelve months to 31-December-24 31-December-23 Change £million £million EPRA earnings 20.0 19.5 Amortisation of finance costs 0.3 0.3 Net decrease/(increase) in lease incentive debtor 1.0 (1.5) Adjusted earnings 21.2 18.3 +16% SUPR Primary 1 Adjusted earnings
Slide 18: Statement of financial position
Statement of financial position As at As at 31-December-24 31-December-23 Change £million £million Portfolio valuation 624.7 675.5 -8% Trade and other receivables 16.0 8.1 Cash and cash equivalents 27.5 29.5 Total assets 658.8 713.0 SUPR Primary 1 Current liabilities (6.1) (2.7) #405268 Non-current
Slide 19: EPRA NTA per share bridge
EPRA NTA per share bridge 5.1p 113.8p (13.5p) 99.1p EPRA NTA per share (5.5p) (0.8p) SUPR Primary 1 #405268 31-Dec-2023 EPRA earnings Revaluation Dividends paid Termination fees and 31-Dec-2024 non-cash items Past performance is not indicative of future results 19
Slide 20: One of the sector's leading debt profiles
One of the sector’s leading debt profiles % fixed 100% Average maturity 8.6 years 2.79% Facility size Average debt cost SUPR Primary 2.40% 1 2.74% #405268 Debt facilities £263.5m £117.5m 2.92% £77.5m 3.22% £41.5m Fitch Rating A- £27.0m FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 Matu
Slide 21: The sector
The sector SUPR Primary 1 #405268 Delph Court, Bradford 21
Slide 22: What is Specialised Supported Housing (SSH)?
What is Specialised Supported Housing (“SSH”)? Homes for vulnerable adults who require support to live independently within the community Care needs typically include learning difficulties, physical disabilities or mental health conditions SUPR Primary 1 #405268 Specially designed or adapted to meet
Slide 23: Addressing SSH misconceptions
Addressing SSH misconceptions Misconception Reality Association with It's the same as temporary Long term 'homes-for-life' for homeless accommodation residents with specific care needs accommodation Long lease Passive income with Operational residential real estate investment value based on SUPR Pri
Slide 24: What makes a good SSH property?
What makes a good SSH property? Right Adapted Identified property homes demand SUPR Primary 1 #405268 Sustainable Specialist rents partners Carden Avenue, Brighton 24
Slide 25: Diversified portfolio of homes
Diversified portfolio of homes SUPR Primary 1 #405268 All assets displayed are currently held within SOHO’s portfolio 25
Slide 26: Homes adapted for individual residents' needs
Homes adapted for individual residents’ needs Access ramps Accessible wet rooms SUPR Primary 1 #405268 Ceiling track hoists Adjustable fixtures All adaptations displayed are within properties currently held within SOHO’s portfolio 26
Slide 27: Structurally under-supplied sector
Structurally under-supplied sector Demand for SSH is expected to increase(1) Supply shortage for SSH (England)(1) Fewer people anticipated to be living: ↑ 79% No. of residents in SSH 1- In registered care settings 29k SUPR Primary 1 2 In hospital settings #405268 66k 37k 3 With informal and family c
Slide 28: Our rents are on market, affordable and sustainable
Our rents are on market, affordable and sustainable Average rental levels Specially adapted homes £231 c.£230 Majority self-contained Not grant subsidised Rent level (per resident per week) £193 SUPR Primary 1 #405268 SOHO Average Privately Funded Supported Housing SSH Market(1) Average(2) Est
Slide 29: Replacement build costs exceed current valuations
Replacement build costs exceed current valuations +10% higher cost £1.7m High build costs restrict £1.5m new supply… Sunnyside, Telford SUPR Primary 1 Asset valuation(1) Replacement cost(2) #405268 Build cost inflation vs CPI, indexed from 2015(3) 141 Build Cost Inflation 134 ...and build costs grow
Slide 30: Cash flows ultimately derived from Government
Cash flows ultimately derived from Government Rent (£) Full Repairing and Insuring lease SUPR Primary 1 It is crucial to Approved #405268 mitigate AP Provider counterparty risk Rent (£) Rent (£) Local Authority Tenancy Agreement Inflation-linked income Contractual Agreement Residents 30
Slide 31: Role of the Approved Provider
Role of the Approved Provider Provide specialist, intensive housing management services SUPR Primary 1 Can access rents that are exempt from the Local Housing #405268 Allowance cap on behalf of vulnerable residents Are regulated entities, predominantly by the Regulator of Social Housing 31
Slide 32: Atrato approach to mitigating AP counterparty risk
Atrato approach to mitigating AP counterparty risk APs are not institutional-grade covenants Counterparty risk mitigated by Proactive asset Monitoring and SUPR Primary 1 De-risking the management using engaging proactively #405268 lease model data to make with APs via structuring timely decisions Mi
Slide 33: Our portfolio
Our portfolio SUPR Primary 1 #405268 Cowpen Road, Blyth 33
Slide 34: Portfolio highlights
Portfolio highlights 494 3,424 £42.6m Properties Lettable homes Contracted rent SUPR Primary 1 #405268 100% 71% Inflation linkage EPC C or above Leatham, Sunderland 34
Slide 35: A highly diversified nationwide portfolio
A highly diversified nationwide portfolio Property Type(1) Resident Cohort(2) 3% 1% 24% 36% 37% SUPR Primary 1 #405268 64% 34% Shared Learning Difficulties Self-contained Multi Diagnosis Mental Health Other Autism & Complex Needs Figures displayed on the map show the number of properties in each reg
Slide 36: 100% of income is inflation-linked
100% of income is inflation-linked Annual indexation basis(1) Average rental growth(2) 7.9% 4% 4% 6.8% 4% SUPR Primary 1 #405268 6.7% 6.9% 3.3% 2.3% 2.5% 1.7% 4.3% 88% 1.0% 2.5% 1.4% 1.1% 1.0% FY18 FY19 FY20 FY21 FY22 FY23 FY24 CPI CPI + 1% RPI RPI + 1% Average rental growth CPI (12-month average) P
Slide 37: Sustainable occupancy levels above 80%
Sustainable occupancy levels above 80% 84% 85% 86% SUPR Primary 1 #405268 2022 2023 2024 Resident Occupancy(1) Northowram, Calderdale (1) “Resident Occupancy” represents the number of residents living in SOHO’s properties against the total number of homes available 37
Slide 38: Improving rent collection profile
Improving rent collection profile SOHO rent collection Westmoreland have paid 72% of 92% 90% 93% Parasol contracted rent since transfer Option to assign leases SUPR Primary 1 agreed as part of My Space CVA #405268 Proactive asset management will prevent any material reduction in rent collection Incr
Slide 39: Relative value vs other living sectors
Relative value vs other living sectors SOHO valuation movement Current living sector relative value(1) 5.49% 5.71% 6.22% 8% £669.1m £678.4m £626.4m 7% Net Initial Yields 6.22% SUPR Primary 1 6% #405268 5% 4% 3% Dec-22 Dec-23 Dec-24 BTR Affordable PBSA Care Homes SSH Portfolio value Net Initial Yield
Slide 40: Homes-for-life delivering better resident outcomes
Homes-for-life delivering better resident outcomes “I’m much more confident” “I require less 1:1 support” SUPR Primary 1 “This makes me feel independent” #405268 “I really like living here” “My mobility has got better” Actual resident responses gathered by The Good Economy and included within the So
Slide 41: SSH delivers significant taxpayer savings
SSH delivers significant taxpayer savings Supported housing options (cost per week)(1) £3,500 £71.6 million Cost per resident per week SUPR Primary 1 £1,760 #405268 estimated annual saving £1,569 to the taxpayer generated Care by SOHO (2) package £1,338 cost Housing £231 cost In-patient facility Res
Slide 42: Case studies
Case studies SUPR Primary 1 #405268 Ebdon Lane, Sunderland 42
Slide 43: Case study 1: Purpose-built individual apartments
Case study 1: Purpose-built individual apartments Location Yorkshire Property type Self-Contained Units 16 Rent1 £382 Occupancy 100% EPC rating B SUPR Primary 1 #405268 Care hours 100+ per week Tenant Cohort Mental Health What makes a good SSH property? Right property Adapted homes Identified demand
Slide 44: Case study 2: High level of acuity
Case study 2: High level of acuity Location West Midlands Property type Shared Units 3 (1 occupier) Rent1 £750 Occupancy 100% EPC rating C SUPR Primary 1 #405268 Care hours 3 to 1 care Tenant Cohort Multi-diagnosis What makes a good SSH property? Right property Adapted homes Identified demand Sustai
Slide 45: Case study 3: Wrong property, wrong location
Case study 3: Wrong property, wrong location Location South-West Property type Shared Units 2 x 6-unit schemes Rent1 £217 Occupancy 0% EPC rating D SUPR Primary 1 #405268 Care hours n/a Tenant Cohort n/a What makes a good SSH property? Right property Adapted homes Identified demand Sustainable rents
Slide 46: Strategic outlook
Strategic outlook SUPR Primary 1 #405268 Shibdon Bank, Newcastle 46
Slide 47: Restoring investor confidence
Restoring investor confidence Fix immediate Long-term Well SUPR Primary 1 positioned tenant and #405268 solution for AP for EPS growth portfolio issues counterparty risk Sorogold, St Helens 47
Slide 48: Q&A
Q&A SUPR Primary 1 #405268 Clock Tower Park, Liverpool 48
Slide 49: Disclaimer
Disclaimer THIS DOCUMENT IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR GENERAL INFORMATION ONLY REGARDING SOCIAL HOUSING REIT PLC. INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE SHARES ON THE BASIS OF INFORMATION CONTAINED IN THIS PRESENTATION OR IN RELIANCE ON THIS PRESENTATION.
Slide 50: Appendix - SOHO key terms
Appendix - SOHO key terms UK listed REIT The Company London Stock Exchange Main Market Management Atrato Partners Limited as Investment Manager Effective from 1 Jan 2025, the management fee will be based on market capitalisation cash based on the following tiers: Management • 1.25% up to £150 millio