Social Housing Reit Plc · LSE:SOHO
Social Housing Reit — H1 2025 Earnings Presentation
42 slides from Social Housing Reit's earnings presentation, September 2025
Slide 1: Interim Results Presentation
Interim Results Presentation For the six months to 30 June 2025 This presentation is intended for professional investors only and does not constitute investment advice or an offer to buy or sell securities. Investment involves risk, including potential loss of capital.
Slide 2: Agenda and presenting team
Agenda and presenting team Introduction Financial results Implementing the strategy Ben Green Nat Markham SUPR Primary 1 Principal CFO #405268 Optimising the portfolio Potential value to come Q&A Michael Carey Adrian D’Enrico Managing Director Managing Director 2
Slide 3: Investing in UK residential property
Investing in UK residential property Adapted properties Essential Uncapped inflation- housing vulnerable social infrastructure linked income adults SUPR Primary 1 #405268 £71m Specialised Supported SOHO annual Highly-diversified portfolio Housing (“SSH”) taxpayer saving(1) (1) Annual Impact Report,
Slide 4: Restoring investor confidence
Restoring investor confidence Fix immediate Long-term Well positionedSUPR Primarytenant 1 and solution for AP for EPS growth #405268 portfolio credit risk challenges Pioneer Court, Stoke-on-Trent Approved Provider (“AP”) is a housing association, Local Authority or other regulated organisation in re
Slide 5: Delivering on our key initiatives
Delivering on our key initiatives RENTAL SUPR Primary 1 COSTS EARNINGS INCOME #405268 Increasing Reducing Growing Sunnyside Road, Telford Past performance is not indicative of future returns. 5
Slide 6: Financial results
Financial results SUPR Primary 1 #405268 Nat Markham CFO Oak House, Birmingham 6
Slide 7: Financial highlights – six months to 30 June 2025
Financial highlights – six months to 30 June 2025 91.4% 16.5% 22% Rent EPRA Cost Adjusted Collection Ratio Earnings Growth SUPR Primary 1 #405268 3.3p 5.62p 1.2x Adjusted FY25 Target Adjusted EPS(1) Dividend Dividend Cover(1) Past performance is not indicative of future results. Shrubbery Avenue, Wo
Slide 8: Net rental income up by 4% year on year
Net rental income up by 4% year on year Six months to Six months to 30-June-25 30-June-24 Change £million £million Net rental income 19.8 19.1 +4% Admin, management fees & other expenses (3.4) (3.8) Finance expense (3.7) (3.8) SUPR Primary 1 EPRA earnings #405268 12.7 11.4 EPRA cost ratio 16.5% 18.7
Slide 9: Net rental income increased 19% vs H2 2024
Net rental income increased 19% vs H2 2024 Net rental income (£m) H2 2024 was impacted by My Space non-payment of rent SUPR Primary 1 #405268 19.1 19.8 16.6 Improving rent collection and annual uplifts driving increase H1 2024 H2 2024 H1 2025 9
Slide 10: Total overheads decreased by 11%
Total overheads decreased by 11% Six months to Six months to 30-June-25 30-June-24 Change £million £million Net rental income 19.8 19.1 Admin, management fees & other expenses (3.4) (3.8) (11)% Finance expense (3.7) (3.8) SUPR Primary 1 EPRA earnings #405268 12.7 11.4 EPRA cost ratio 16.5% 18.7% Adj
Slide 11: Investment management fee materially reduced
Investment management fee materially reduced Six months to Six months to 30-June-25 30-June-24 £million £million Investment Management fees 1.6 2.3 Legal and professional costs 1.0 1.1 Directors’ fees 0.2 0.2 Non-recoverable property costs 0.3 (0.1) SUPR Primary 1 Other administrative costs #405268
Slide 12: EPRA cost ratio normalised
EPRA cost ratio normalised Six months to Six months to 30-June-25 30-June-24 £million £million Net rental income 19.8 19.1 Admin, management fees & other expenses (3.4) (3.8) Finance expense (3.7) (3.8) SUPR Primary 1 EPRA earnings #405268 12.7 11.4 EPRA cost ratio 16.5% 18.7% Adjusted EPRA earnings
Slide 13: Adjusted EPRA Earnings per share up by 22%
Adjusted EPRA Earnings per share up by 22% Six months to Six months to 30-June-25 30-June-24 Change £million £million Net rental income 19.8 19.1 Admin, management fees & other expenses (3.4) (3.8) Finance expense (3.7) (3.8) SUPR Primary 1 EPRA earnings #405268 12.7 11.4 EPRA cost ratio 16.5% 18.7%
Slide 14: 1.21x dividend cover
1.21x dividend cover Six months to Six months to 30-June-25 30-June-24 Change £million £million EPRA earnings 12.7 11.4 Non-cash items(1) 0.5 (0.6) Adjusted EPRA earnings 13.2 10.8 Adjusted earnings per share 3.3 pence 2.7 pence SUPR Primary 1 #405268 Dividends paid 10.9 10.7 Adjusted dividend cover
Slide 15: EPRA NTA per share bridge
EPRA NTA per share bridge 3.2p 99.0p EPRA NTA per share (2.8)p SUPR Primary 1 95.6p #405268 (4.0)p 31 December 2024 EPRA earnings Dividends paid Revaluation 30 June 2025 15
Slide 16: One of the sector's leading debt profiles
One of the sector’s leading debt profiles % Fixed 100% Average maturity 8.1 years 2.79% Facility size Average debt cost SUPR Primary 2.40% 1 2.74% #405268 Debt facilities £117.5m 2.92% £77.5m £263.5m 3.22% Fitch rating £41.5m £27.0m A- Reaffirmed June 2025 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY3
Slide 17: Implementing the strategy
Implementing the strategy SUPR Primary 1 #405268 Michael Carey Managing Director Claridge Court, Rushden 17
Slide 18: Delivering on FY24 Results key initiatives
Delivering on FY24 Results key initiatives Fix immediate Long-term Well positionedSUPR Primarytenant 1 and solution for AP for EPS growth #405268 portfolio credit risk challenges Cherry Tree Lane, North Walsham 18
Slide 19: Income is up 19%
Income is up 19% Proactive asset management & successful lease assignments SUPR Primary 1 99% of rent#405268 collected across the rest of the portfolio Potential to capture higher inflation through inflation-linked leases 19
Slide 20: Costs are down
Costs are down £1.1 million annual management fee saving(1) SUPR Primary 1 #405268 Comprehensive cost review undertaken EPRA Cost Ratio materially reduced to 16.5% (1) Management fee saving calculated by comparing the fees paid to Atrato in H1 2025 with the hypothetical fees that would have been inc
Slide 21: Adjusted earnings are up 22%
Adjusted earnings are up 22% Dividend cover has increased from 1.0x to 1.2x SUPR Primary 1 #405268 We increased the dividend target by 3% We have returned to a progressive dividend policy 21
Slide 22: Delivering on FY24 Results key initiatives
Delivering on FY24 Results key initiatives Fix immediate Long-term Well positionedSUPR Primarytenant 1 and solution for AP for EPS growth #405268 portfolio credit risk challenges Cherry Tree Lane, North Walsham 22
Slide 23: Resolving historic Approved Provider challenges
Resolving historic Approved Provider challenges Parasol to My Space to Westmoreland Inclusion 31% of rent received 75% of rent received Progress on pass-through post- during H1 25 SUPR Primary 1 CVA #405268 Properties expected to Assignment to Next Steps revert to FRI terms at Inclusion Group 90% of
Slide 24: Mitigating future credit losses
Mitigating future credit losses Getting the Taking strong, Leveraging tenant property SUPR Primary 1 decisive action #405268data for proactive fundamentals when tenant asset management right challenges arise 24
Slide 25: Decisive, proactive action taken with Pivotal
Decisive, proactive action taken with Pivotal Challenge Financial difficulties and regulatory involvement Assignment SUPR Primary 1 to alternative AP in progress ahead of any Progress #405268 further business deterioration Both properties expected to be assigned later this year(1) Next Steps No loss
Slide 26: Delivering on FY24 Results key initiatives
Delivering on FY24 Results key initiatives Fix immediate Long-term Well positionedSUPR Primarytenant 1 and solution for AP for EPS growth #405268 portfolio credit risk challenges Cherry Tree Lane, North Walsham 26
Slide 27: Mitigating Approved Provider risk
Mitigating Approved Provider risk Mitigate the risk of rental income not flowing through to SOHO Rent (£) Rent (£) Rent (£) Restructure to get greater protection SUPR Primary 1 Approved #405268 for SOHO’s income stream Provider Rent (£) Local Authority Legal advice received Rent (£) Consulting with
Slide 28: Optimising the portfolio
Optimising the portfolio SUPR Primary 1 #405268 Adrian D’Enrico Managing Director Topcliffe Lane, Leeds 28
Slide 29: Stable, income-generating portfolio
Stable, income-generating portfolio 492 3,412 86% Properties Lettable Resident homes occupancy SUPR Primary 1 #405268 £43.2m 74% Contracted EPC C rent or above(1) Leatham, Sunderland All information as at 30 June 2025. Figures displayed on the map show the number of properties in each region within
Slide 30: Upgrading energy efficiency
Upgrading energy efficiency 74% of homes already compliant A 1% Below expected 2030 target 2025-28 ~60% D or Programme Funded by below ECO4 grant 26% timeline B 33% SUPR Primary 1 #405268 £2.5 million Expected to be C SOHO NTA accretive 40% contribution Beach Road, Littlehampton All information as a
Slide 31: Uncapped, inflation-linked income
Uncapped, inflation-linked income CPI Inflation(1) 6% 100% inflation linkage All rents reviewed annually 5% Forecast 4.0% 4% 3% SUPR Primary 1 Uncapped rental uplifts 2% #405268 86% of rental income(1) 1% Supported by Government policy Commitment of CPI+1% until 2036 (1) Source: ONS CPI UK inflation
Slide 32: SSH offers material relative value within living
SSH offers material relative value within living Living Sector Yields 8% 7% SOHO NIY (Jun-25) 6.42% Net Initial Yields 6% SUPR Primary 1 #405268 5% 4% 3% BTR Affordable PBSA Care Homes JLL Monthly Yield Sheet – August 2025 and internal research. 32
Slide 33: 97% of properties are performing
97% of properties are performing Portfolio Assessment Outcome 5 5 assets have operational solutions identified and being progressed 475 17 SUPR Primary 1 12 #405268 12 properties do not meet our investment criteria and are expected to be sold Performing (97% of properties) Identified solutions (1% o
Slide 34: Optimise the portfolio for growth or sale
Optimise the portfolio for growth or sale Capital allocation discipline guided by cost of capital analysis Portfolio sales & share buybacks remain under consideration SUPR Primary 1 #405268 Buyers’ market makes acquisition opportunities attractive Acquisitions enhance portfolio & diversify counterpa
Slide 35: Optimising portfolio property quality
Optimising portfolio property quality SUPR Primary 1 #405268 Brooke Street, Chorley 35
Slide 36: Potential value to come
Potential value to come SUPR Primary 1 #405268 Ben Green Principal Bolston Road, Worcester 36
Slide 37: Potential value to come
Potential value to come Earnings SUPR Primary 1 Capital Growth #405268 Upside Fountain Court, Walsall 37
Slide 38: Q&A
Q&A Ben Green Nat Markham Principal SUPR CFO Primary 1 #405268 Michael Carey Adrian D’Enrico Managing Director Managing Director Princes Avenue, Kent 38
Slide 39: Statement of financial position
Statement of financial position As at As at 30-June-25 31-December-24 £million £million Portfolio valuation 610.2 624.7 Trade and other receivables 6.9 6.6 Cash and cash equivalents 25.1 27.5 Total assets 642.2 658.8 SUPR Primary 1 Current liabilities #405268 (3.1) (6.1) Non-current liabilities (263
Slide 40: Uncapped, inflation-linked income
Uncapped, inflation-linked income Annual indexation basis(1) Inflation uplift structure(2) RPI + 1% (4%) RPI (4%) CPI + 1% (4%) Capped (14%) SUPR Primary 1 #405268 CPI (88%) Uncapped (86%) Figures provided are % of rent roll. (1) Rent reviews in the lease are with the Approved Provider. (2) 14% of l
Slide 41: SOHO key terms
SOHO key terms UK listed REIT The Company London Stock Exchange Main Market Management Atrato Partners Limited as Investment Manager Management fee structure is calculated on market capitalisation based on the following tiers: • 1.25% up to £150 million; Management • 1.00% between £150 million to £3
Slide 42: 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.