Gresham House Energy Storage Fund Plc GBP · LSE:GRID
Gresham House Energy Storage Fund Plc GBP — Residential Secure Income — H1 2020 Earnings Presentation
20 slides from Gresham House Energy Storage Fund Plc GBP's earnings presentation, May 18, 2020
Slide 1: Residential Secure Income plc
Residential Secure Income plc Aims to generate secure inflation-linked returns while accelerating the development of socially and economically beneficial new housing Unaudited Interim Report and Accounts for the six months to 31 March 2020 18 May 2020
Slide 2: Important Legal Notice
IMPORTANT LEGAL NOTICE THIS PRESENTATION IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY, BY ANY MEANS OR MEDIA TO US PERSONS IN OR INTO, THE UNITED STATES, AUSTRALIA, SOUTH AFRICA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE
Slide 3: Presentation Team
PRESENTATION TEAM Ben Fry Managing Director, ReSI Capital Management Alex Pilato Chief Executive, ReSI Capital Management Mark Rogers Managing Director, ReSI Capital Management 3
Slide 4: Contents
CONTENTS Half-year highlights 5 COVID-19 impact 6 2020 Unaudited Interim Results 7 Our portfolio 8 Potential future portfolio growth 9 Successfully driving shared ownership homes 10 Shareholder returns 11 Debt overview 12 Personnel & management changes 13 Outlook 14 Appendix 15 4
Slide 5: Half-Year Highlights
HALF-YEAR HIGHLIGHTS ▪ Defensive portfolio with rental income primarily supported by residents’ pensions or housing welfare subsidy systems, including leases to local authorities ▪ 99% of April rent collected, following 99% in Q1 ▪ Successfully delivering shared ownership homes, with 88% of Resident
Slide 6: COVID-19 Impact
COVID-19 IMPACT ▪ Moved swiftly to protect our residents, staff and delivery partners, whilst aiming to safeguard shareholder value ▪ Portfolio’s defensive qualities evidenced during period of economic stress with 99% of rent collected in April 2020 ▪ ReSI's rental income is primarily supported by r
Slide 7: 2020 Unaudited Interim Results
2020 UNAUDITED INTERIM RESULTS 115.0 1.5 1.3 110.0 (2.1) 2.8p recurring income 105.0 (2.5) 100.0 108.6 106.9 95.0 90.0 Net Asset Value at Net income Valuation change Valuation Change Dividends paid Net Asset Value at 30/09/2019 (inflation linked) (one off) 31/03/2020 7
Slide 8: Our Portfolio
OUR PORTFOLIO ReSI’s investment strategy aims to deliver a secure income stream from a residential social housing portfolio benefitting from: Local Shared 31 March 2020 Retirement Total ▪ Below market rents’ rate ensuring on-going demand; authority ownership ▪ Diverse income stream from tenants with
Slide 9: Planned Portfolio Growth
PLANNED PORTFOLIO GROWTH 5.0p dividend Path to full dividend cover (pence per share impact): FY19 recurring earnings 2.9 → Recurring operating income excludes profits from first tranche profits and valuation movements → 0.5p from ReSI’s existing shared ownership homes (of Totteridge + Clapham B6 inc
Slide 10: Successfully Delivering Shared Ownership Homes
SUCCESSFULLY DELIVERING SHARED OWNERSHIP HOMES ▪ £43m purchase of 93 apartments from Crest Nicholson and Metropolitan Thames Valley, completed in January 2019 and January 2020 Location Totteridge Place, Barnet Buyer profile: Clapham Park, Lambeth 88% of units sold or in progress Size 93 apartments (
Slide 11: Shareholder Returns
SHAREHOLDER RETURNS Dividend Valuation gains NAV shareholder return ▪ Total dividends of 2.5p declared for ▪ £1.0m/0.4% decrease in fair value of properties ▪ NAV shareholder return of 0.8p per share the year to date, in line with 5.0p during the period (2019: £5.2m increase) for the year (March 201
Slide 12: Debt Overview
DEBT OVERVIEW ▪ Investment grade debt ensures asset quality ▪ £111m of fixed-rate debt with average cost of 3.3%. Weighted average life of 19.3 years with ▪ Low and certain cost of funding expands investment £78m not due for repayment until 2043 opportunities to those with lower yields with improved
Slide 13: Personnel & Management Changes
PERSONNEL & MANAGEMENT CHANGES ReSI Capital Management Limited joined Gresham House plc ▪ Brings benefit of robust central platform that includes distribution, investor relations, compliance, reporting and risk capabilities ▪ Allowing team to focus on origination, delivering full occupancy on the sh
Slide 14: Outlook
OUTLOOK ▪ UK housing crisis likely to become more acute as a result of the pandemic coupled with increased demand for social housing in an anticipated recessionary environment ▪ Defensive quality of portfolio, illustrated by 99% rent collection for April, underpinning 5.0p annual target dividend ▪ G
Slide 15: Appendices
APPENDICES
Slide 16: Introduction
INTRODUCTION Residential Secure Income plc - Summary ▪ Residential Secure Income plc (ReSI) is a UK REIT listed on the main market of the London Stock Exchange providing a highly scalable, long-term investment opportunity that aims to generate secure, inflation-linked returns from a highly defensive
Slide 17: Portfolio Overview
PORTFOLIO OVERVIEW Assets Overview Social impact1 ▪ Affordable home ownership through part buy, part rent ▪ £2.71 social impact ratio over 25 years Shared ownership ▪ Shared owners purchase a c.25% stake in a property and ▪ Shared ownership opens the door to home ownership 166 homes - £65m pay a bel
Slide 18: Portfolio Returns
Portfolio Overview PORTFOLIO RETURNS Retirement Local authority Shared ownership Total Value £211m £35m £34m £277m Social Impact £354m £168m £109m £631m Units 2,224 289 93 2,606 LTV 45% 41% N/A- unleveraged 36% Interest cost 3.46% 2.56% N/A- unleveraged 3.34% Net yield on value 4.7% 5.4% 2.9% 4.6% N
Slide 19: Unaudited Statement of Comprehensive Income
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME 6 months to 31 6 months to 31 March 2020 March 2019 Variance £’000s £’000s Gross rental income 10,226 9,637 1.3p Adjusted earnings per share Property operating expenses -4,059 -3,871 Mar 2019: 1.2p First tranche property sales 6,147 0 Profit after tax per
Slide 20: Unaudited Statement of Financial Position
UNAUDITED STATEMENT OF FINANCIAL POSITION 31 March 2020 30 September 2019 Variance £’000s £’000s 106.9p Net Asset Value per share Investment property (Savills valuation) 276,850 260,630 6.2% Sep 2019: 108.6p Finance lease asset* 29,532 29,532 IFRS Net Asset Value per share. A decrease of 1.7p or 1.6
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