Social Housing Reit Plc · LSE:SOHO
Social Housing Reit — Triple Point Social Housing REIT — H1 2022 Earnings Presentation
29 slides from Social Housing Reit's earnings presentation, September 2022
Slide 1: Results for the period ended 30 June 2022
Results for the period ended 30 June 2022
Slide 2: Agenda
Agenda Triple Point Social Housing REIT plc - Board Highlights – Max Shenkman Financial Overview – Jacinta Spedding CHRIS PHILLIPS IAN REEVES CBE TRACEY FLETCHER-RAY PETER COWARD PAUL OLIVER Chairman Senior Independent Non-Executive Director Non-Executive Director Non-Executive Director Operational
Slide 3: Melody and Angela's Case Study
Melody and Angela’s Case Study Melody Angela "I really love my home. “It’s changed my life, I’ve had mental health input for I’m so glad I came here. Mentally I feel so a long time and this is the first thing, being here, that much better.” is truly helping me move forward” 3
Slide 4: Key Performance Indicators
Key Performance Indicators1 111.80p 5.46p 1.00x 36.8% EPRA NTA Target Dividend Look-through Group LTV per Share per Share Dividend Cover (Dec-21: 108.27p) (FY21: 5.20p) (Dec-21: 0.99x) (Dec-21: 37.6%) £669.6m 96.1% 25.9 yrs 5.28% Portfolio Valuation 2022 Rent WAULT EPRA Net Collection Initial Yield
Slide 5: Homes Led Strategy Underpinned by Growing Demand
Homes Led Strategy Underpinned by Growing Demand Specialist Focus on Growing Resilient Homes Additionality Demand Valuations Adapted homes for 62% of properties are Additional demand is Specialised Supported people with care and new to the forecast to increase by Housing property support needs Speci
Slide 6: Cumulative Total Accounting Return
Shareholder Returns 99.3% 37.4% 7.6% 5.46p Total rent collection Cumulative total Annualised total FY22 Target since IPO accounting return accounting Dividend Guidance since IPO return Total Accounting Return since IPO including Dividends 40% 37.4% 140 NAV plus Cumulative Dividend Paid per 35% 135 C
Slide 7: Fixed Priced Debt and Inflation Protection
Fixed Priced Debt and Inflation Protection 11.1 years 2.74% c.80% Weighted average Weighted average Rental income debt maturity1 fixed coupon already uplifted in respect of FY2022 Current Drawn Debt Maturity Profile £200m £150m £100m £117.5m £50m £77.5m £50.0m1 £41.5m £27.0m £0m 2022 2023 2024 2025
Slide 8: Pipeline Value
Remaining Capital Allocated To New Homes £22.8 million Remaining Deployable Cash £86.6 million Identified pipeline over £100m £1.4m the next 3 months £80m £26.3m Pipeline Value £60m £40m £58.9m £22.8m1 remaining deployable cash 5.5% - 6.1% £20m Target Purchase NIYs £0m Sep-22 Oct-22 Nov-22 Pipeline
Slide 9: Financial Overview
Financial Overview
Slide 10: Statement of Comprehensive Income
Statement of Comprehensive Income Six months to Six months to Year ended % change £’000 30 June 2022 30 June 2021 31 December 2021 June 22 v June 21 14% Rental Income 18,208 15,931 33,117 14.3% Increase in Expected Credit Loss (474) - - - Rental Income Other Income 110 - - - Total expenses (3,874) (
Slide 11: Statement of Financial Position
Statement of Financial Position Six months to Six months to Year ended % change £’000 30 June 2022 30 June 2021 31 December 2021 June 22 v Dec 21 37.4% Investment property (IFRS valuation) 668,348 596,155 641,293 4.2% Total Shareholder Asset held for sale 640 500 480 33.3% Return Trade and other rec
Slide 12: EPRA NTA Reflecting Strong Valuation Uplifts
EPRA NTA Reflecting Strong Valuation Uplifts 116 114 -2.67p 112 +4.26p -0.14p -0.49p 110 +2.57p EPRA NTA per Share 108 106 111.80p 104 108.27p 102 100 98 EPRA NTA Adjusted EPRA Earnings Amortisation - Loan One-off Write-off - Loan Property Revaluation Dividends Paid EPRA NTA 31-Dec-21 Arrangement Fe
Slide 13: Continued Portfolio Valuation Growth
Continued Portfolio Valuation Growth £669.6 million 12.7% 5.28%1 Valuation uplift against Valuation yields have Portfolio Valuation total invested funds of remained stable over (Dec-21: £642.0m) £594.0 million the last two years Historic Portfolio Valuation £1,000m 6.00% 5.30% 5.27% 5.28% 5.25% 5.28
Slide 14: Secured Debt Overview
Secured Debt Overview Diversified Lender Base £263.5 million 11.6 years Aggregate debt Weighted average drawn debt maturity Loan Lender Facility Cost Maturity Amount Drawn Fitch Rating Commitment Floating Lloyds & NatWest RCF 20231 £50.0m £0.0m n/a SONIA + 1.850% Loan Notes I Fixed MetLife 2028 £41.
Slide 15: Fitch Reaffirmed Investment Grade Rating
Fitch Reaffirmed Investment Grade Rating “A-” (IDR) “A” (Senior Secured) Long-term demand for Local authorities pay housing Comfortable liquidity profile A net debt/EBITDA ratio SSH benefit and separately other with readily available cash in of under 9.0x and costs for care on behalf of SSH addition
Slide 16: Operational Overview
Operational Overview
Slide 17: Operational Themes
Operational Themes Inflationary Proposed Cap on Rent Cost Pressures Rent Increases Collection Utilities, maintenance Govt consulting on social 96.1%1 of rent and staffing costs are housing rent cap. collected. increasing. Impact on RP operating Operational support margins will need to be provided to
Slide 18: Continued Regulatory Engagement
Continued Regulatory Engagement Update Focus Going Forward 9 of SOHO’s lessees Continued Risk sharing in Further have been deemed regulatory focus future and existing improvements in non-compliant on the sector leases governance No new Ongoing direct Compliance with Stress testing and judgements iss
Slide 19: Further Lessee Diversification
Further Lessee Diversification Diversified Lessee Base1 26 Inclusion Approved Providers Parasol Homes SOHO has leases with Falcon Hilldale My Space Chrysalis BeST AHS 29.1% Highstone Care Housing Association 3 Blue Square New lessees to SOHO Sunnyvale within identified Sandwell pipeline IHL Wings Ca
Slide 20: Delivering Additional Homes Throughout the UK
Delivering Additional Homes Throughout the UK Bringing Additionality to the Sector 37.6% New SSH stock Existing SSH stock 62.4% Adapted and New Build Properties 33.2% New Build Purpose Built 57.7% Adapted 9.2% 20
Slide 21: The Good Economy Impact Report
The Good Economy Impact Report 21
Slide 22: Improving Energy Efficiency Through Retrofit Programme
Improving Energy Efficiency Through Retrofit Programme Property EPC Ratings Tailored 0.0% investment 0.1% 0.4% into existing homes 7.0% 31.5% Nationwide 22.5% A B contractor C selected D E F G Reduced bills and energy consumption 38.4% 22
Slide 23: Outlook
Outlook Supporting Forming Delivering our Deploying remaining Approved Providers partnerships with retrofit programme capital into good as they navigate the new Approved to ensure the homes with a focus current inflationary Providers using new portfolio’s long-term on additionality challenges lease
Slide 24: Appendix
Appendix
Slide 25: 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 26: Investment Manager Team Overview
Investment Manager Team Overview 216 employees Social Housing Digital Infrastructure Energy Private Credit Venture HOUSING INVESTMENT FUND FINANCE RISK LEGAL Max Shenkman Isobel Gunn-Brown Chris Lake Justin Hubble Partner & Head of Investment Partner & Head of Fund Finance Partner Partner & General
Slide 27: 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 28: 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 29: 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
Triple Point Social Housing REIT — H1 2022 Earnings Presentation on 6ix