Social Housing Reit Plc · LSE:SOHO
Social Housing Reit — Triple Point Social Housing REIT — FY2021 Earnings Presentation
34 slides from Social Housing Reit's earnings presentation, March 2022
Slide 1: Results for the year ended 31 December 2021
Results for the year ended 31 December 2021
Slide 2: Agenda
Agenda Contents Triple Point Social Housing REIT plc - Board Highlights 4 Change in Investment Policy 6 CHRIS PHILLIPS IAN REEVES CBE TRACEY FLETCHER-RAY PETER COWARD PAUL OLIVER Chairman Senior Independent Non-Executive Director Non-Executive Director Non-Executive Director Financial Overview 8 Dir
Slide 3: Will's case study
Will's case study Will, a 56-year-old wildlife Will lives at Brunswick Gardens lover and film fan, moved into in his own "peaceful" home, his apartment just before where he has made friends and Christmas 2020 his family can visit him. In his Having been in four different own words, his life now "is
Slide 4: 2021 Planning for the Future
2021 Planning for the Future + Anne-Britt Karunaratne Hired as Housing Refinanced short-term Investment into new Initiated retrofit Operations Director floating rate debt homes programme Previously Executive Director of £195m of long-term fixed price debt SOHO has acquired 44 properties Target: to m
Slide 5: Key Performance Indicators
Key Performance Indicators1 31 Dec 2020: 31 Dec 2020: 31 Dec 2020: 31.5% 108.27p 5.20p 0.99x 37.6% 106.42p 0.98x 31 Dec 2020: LTV target of 35-40% 5.18p Increase of 10.5% Deploying recent EPRA NTA per since IPO Dividend per Increased in line Look-through debt proceeds LTV3 All drawn debt fixed price
Slide 6: Proposed Changes to the Investment Policy
Proposed Changes to the Investment Policy We are proposing the following amendments Existing leases have performed well – Registered Providers to SOHO’s Investment Policy: evolving lease SOHO has delivered structures to cumulative total Removing SOHO’s minimum lease term accommodate • shareholder re
Slide 7: Pipeline
Pipeline £10m of SOHO's remaining capital can Derbyshire be deployed into opportunities with • Leased to an RP new to more flexible leases SOHO’s portfolio • NIY of 6.10% • Initial pipeline of flexible leases is in • 12-month construction period excess of £15m • 17 self-contained apartments • NIYs i
Slide 8: Financial Overview
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Slide 9: Statement of Comprehensive Income
Statement of Comprehensive Income £’000 31 December 2021 31 December 2020 % change • Rental income rose while total expenses remained Rental Income 33,117 28,393 16.6% stable Other Income - 535 • Ongoing charges ratio was 1.54% compared to 1.57% Total expenses (6,926) (6,607) 4.8% in 2020, and EPRA
Slide 10: Statement of Financial Position
Statement of Financial Position £’000 31 December 2021 31 December 2020 % change • Current available cash for deployment of £27.0m1 Investment property (IFRS valuation) 641,293 572,101 12.2% • Portfolio NAV of £486.1m and 120.68 pence per Asset held for sale 480 110 share, compared to £468.8m and 11
Slide 11: Cumulative Total Shareholder Return since IPO including Dividends
Cumulative Total Shareholder Return since IPO including Dividends • Delivered a total return of 31.1% to shareholders since inception, reflecting a 7.1% annualised return • SOHO has paid all target dividends in full since inception; target dividends are expected to continue to increase in line with
Slide 12: Portfolio Valuation
Portfolio Valuation Key Highlights Historical Portfolio Valuations • Portfolio valued at £642.0m on an IFRS basis, an uplift £800m £642.0m of 8.7% against total invested funds of £590.4m1 £571.5m £600m £471.6m • Blended weighted average net initial yield at £400m £323.5m purchase was 5.90% compared
Slide 13: Debt Overview
Debt Overview £263.5 million 2.74% 11.6 years 100% Aggregate debt Weighted average Weighted average % of drawn debt drawn cost of debt debt maturity fixed-priced • The Group secured £195.0m of long-term, fixed rated debt from Barings and MetLife • The £130.0m drawn portion of the Group’s existing RC
Slide 14: Diversified and Long-term Debt Maturity Profile
Diversified and Long-term Debt Maturity Profile £200m £160.0m1 £150m £100m £117.5m £50m £77.5m £50.0m £41.5m £27.0m £0m 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Loan Lender Facility Cost Maturity Amount Drawn Fitch Rating Commitment Floating Lloyds & NatWest RCF 202
Slide 15: Operational Overview
Operational Overview
Slide 16: Operational Themes
Operational Themes Working with RPs to address the Regulator’s comments Staffing challenges Post-COVID Direct engagement Regulator of Inflationary impact operational with the Regulator Social Housing on operating costs issues Recent publication Working with Emphasis on high of Social Care our Approv
Slide 17: Example Portfolio Properties
Example Portfolio Properties North West 76 Earlsway, Macclesfield 10 Homes Yorkshire Hirstlands Drive 20 Homes North West Alexandra Apartments 7 Homes West Midlands Lillydale Road 16 Homes 17
Slide 18: Geographically Diversified Portfolio
Geographically Diversified Portfolio Scotland Properties: 2 Units: 29 Funds Invested: 1.0% North West North East Properties: 104 Properties: 45 Units: 805 Yorkshire Units: 341 Funds Invested: 21.5% Properties: 60 Funds Invested: 8.3% West Midlands Units: 507 Properties: 83 Funds Invested: 14.2% Unit
Slide 19: Lessee Diversification
Lessee Diversification Key Highlights Rental Income by Approved Provider Inclusion • Leases with 24 Approved Providers (“APs”) who Falcon continue to strengthen operational depth Parasol Homes Hilldale • 4 new lessees introduced this year My Space Chrysalis • Active engagement with the Regulator to
Slide 20: Social Care White Paper
Social Care White Paper Projected demand for specialised housing forecast to increase by SOHO remains focused on helping meet excess demand Estimates predict 125,000 by 2030 that at least Focus on living as part of a community and promoting SOHO's homes provide independent community living 1.7 milli
Slide 21: Our Retrofit Approach
Our Retrofit Approach With the built environment Communication is key the whole way through the process… accounting for 40% of the UK’s carbon footprint, the housing sector must lead Before the works start the way in green initiatives. SOHO is leading from the front Whilst the works are going on Fol
Slide 22: Our Retrofit Approach
Our Retrofit Approach We look at the fabric of a property and then where energy is being used A retrofit needs to be fit for purpose - not a one size fits all project Roof Walls Windows All improvements will be tailor-made and Lighting consider the needs of the property and the Heating needs of the
Slide 23: EPC A property / Green Lease
EPC A property / Green Lease Solar 8 flat property located in Panels Telford, acquired in December 2021 Double Provides adapted homes for Glazing 8 adults with learning and physical difficulties Insulated Walls The property is highly energy efficient, with an A 92+ EPC rating ‘A’ B 81 -91 C 69 -80 T
Slide 24: ESG and Social Impact
ESG and Social Impact
Slide 25: The Good Economy Impact Report
The Good Economy Impact Report 25
Slide 26: ESG and Impact Embedded within SOHO's Mission
ESG and Impact Embedded within SOHO’s Mission We are a participant in the Working with consultants We have 4 impact goals which are equity Impact project – to better understand incorporated into our processes helping to devise a sector- the embodied carbon of our and are assessed on a bi-annual wide
Slide 27: Outlook
Outlook
Slide 28: Outlook
Outlook Focus on continued Engaging with our Rolling out retrofit Remain an attractive delivery of properties Shareholders on the programme on pilot partner and evolve with which provide our proposed changes to our schemes to ensure the long- the sector; allowing residents with homes in investment p
Slide 29: Appendix
Appendix
Slide 30: SOHO Board
SOHO Board Chris Phillips, Chairman Chris has extensive experience of real estate and listed companies. He was Managing Director of PB Securities, the UK subsidiary of Prudential Bache, for three years, before joining Lombard Odier as the Managing Director of its London broking business. He then joi
Slide 31: Investment Manager Team Overview
Investment Manager Team Overview 188 employees Social Housing Digital Infrastructure Energy Private Credit Venture HOUSING INVESTMENT FUND FINANCE RISK & DEBT LEGAL Max Shenkman Isobel Gunn-Brown Chris Lake Justin Hubble Partner & Head of Investment Partner & Head of Fund Finance Partner Partner & G
Slide 32: Key Terms
Key Terms UK listed REIT The Company London Stock Exchange Main Market, Premium Segment Management Triple Point Investment Management LLP as Investment Manager • the Group will only invest in social housing assets located in the United Kingdom • the Group will only invest in social housing assets wh
Slide 33: Glossary
Glossary Approved Provider a housing association, local authority or other regulated organisation in receipt of direct payment from local government including a care provider; Board the Directors of the Company from time to time; Company Triple Point Social Housing REIT plc (company number 10814022)
Slide 34: Disclaimer
Disclaimer This presentation, including any oral presentation, any question or answer session and any written or oral material discussed or distributed during the presentation meeting (together, "this presentation") is for general information only regarding Triple Point Social Housing REIT plc (the
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