Social Housing Reit Plc · LSE:SOHO
Social Housing Reit — Triple Point Social Housing REIT — H1 2021 Earnings Presentation
31 slides from Social Housing Reit's earnings presentation, Sep 3, 2021
Slide 1: Supported Housing in the UK
Supported Housing in the UK Results for the period ended 30 June 2021 3 September 2021 1
Slide 2: Content
Content Key highlights Triple Point Social Housing REIT plc Board Highlights 4 Financial Overview 7 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 Overview 13 Dire
Slide 3: SOHO at a glance
SOHO at a glance Earlsway Significant unmet demand for Specialised Supported Housing Macclesfield Long-term inflation-linked leases which generate resilient rental income 100% of inflation-linked dividend targets met, providing investors with a cumulative total shareholder return of 26.5% since IPO1
Slide 4: Key Performance Indicators
Key Performance Indicators1 458 £33.5m £596.3m 5.28% Properties Annualised Rental Income Portfolio Valuation (IFRS) Blended Net Initial Yield (31 December 2020: 445) (31 December 2020: £32.1m) (31 December 2020: £571.5m) (31 December 2020: 5.27%) Providing 3,214 homes for vulnerable Includes exchang
Slide 5: £195m Sustainability-linked Private Placement
£195m Sustainability-linked Private Placement • On 26 August 2021, the Group secured £195m of long-term, fixed rated debt from Barings and MetLife • The debt has a weighted average all in fixed rate of 2.634% and a weighted average term of 13 years • The £130m drawn portion of the Group’s existing R
Slide 6: Fitch ‘A’ / ‘A-’ Investment Grade Rating
Fitch ‘A’ / ‘A-’ Investment Grade Rating • The Group obtained an investment grade Long-Term Issuer Default Rating of ‘A-‘ • Both the existing £68.5m and new £195m loan notes were provided with a senior secured rating of ‘A’ • Fitch referred to the following positives in their rating note: • Communit
Slide 7: Financial Overview
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Slide 8: Statement of Comprehensive Income
Statement of Comprehensive Income For six months ended Year ended Key highlights £’000 30 June 2021 30 June 2020 31 December 2020 • Both the ongoing charges ratio has reduced to 1.53% (Dec-20: 1.57%) and the EPRA Cost ratio has reduced to Rental Income 15,931 13,372 28,393 21.52% (Dec-20: 23.27%) Ot
Slide 9: Statement of Financial Position
Statement of Financial Position Key highlights £’000 As at: 30 June 2021 30 June 2020 31 December 2020 • Asset held for sale at Dec-20 has since been sold and one further asset held for sale at period end has since had an Investment property (IFRS valuation) 596,155 511,016 572,101 accepted offer As
Slide 10: Fund Trajectory
Fund Trajectory Cumulative return since IPO including dividends 30% 130.00p 26.5% 25% 125.00p NAV plus Cumulative Dividend Paid per Share Cumulative Total Shareholder Return 20% 120.00p 15% 17.57p 115.00p 14.98p 12.39p 10% 9.81p 110.00p 7.27p 4.75p 5% 106.42p 106.42p 105.00p 105.37p 105.34p 2.25p 10
Slide 11: Property Valuation
Property Valuation KeyKey Highlights highlights IFRS valuation as at 30 June 2021 £650m • The Company has invested a total of £553.6 million1 in Specialised Supported Housing since inception £625m £640.0m which has been valued by JLL as at 30 June 2021 £600m • IFRS Property Valuation: Independently
Slide 12: Debt Overview
Debt Overview Summary of facilities Summary of existing facilities as at 30 June 2021 LTV 31.5% 37.7% Loan Notes RCF As at 30 June 2021: Aggregate debt drawn Lender MetLife (Tranche A) MetLife (Tranche B) Lloyds & NatWest Facility Size £41.5 million £27.0 million £160.0 million £198.5m £263.5m Drawn
Slide 13: Operational Overview
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Slide 14: Investment Highlights
Investment Highlights £12.1m Announced Acquisitions £14.0m Announced Acquisitions £195m Private Placement Acquired 7 Supported Housing properties, Acquired 10 Supported Housing properties, The Group secured £195m of long-term, comprising 68 units exchanged contracts on a further 2 properties, sustai
Slide 15: Pipeline
Pipeline KeyKey Highlights highlights Meaningful Meaningful investment investment opportunities opportunities • Strong 12-month pipeline in excess of £150m • Majority of pipeline is made up of individual recently SSH PORTFOLIO adapted or developed properties Assets 22 • We have entered into exclusiv
Slide 16: Geographically Diversified Portfolio
Geographically Diversified Portfolio % of Funds Region Properties Units Invested1 North West 100 797 22.3 West Midlands 81 527 16.6 East Midlands 56 421 12.1 2 Scotland Yorkshire 40 328 10.9 South East 58 261 9.4 45 North East 100 North West London 26 196 9.2 North East 45 351 8.8 40 Yorkshire South
Slide 17: Lessee Diversification
Lessee Diversification Key highlights Market value by lessee • As at 30 June 2021, SOHO had 22 Approved Provider Inclusion Falcon (“AP”) lessees most of whom are specialist Parasol Homes Hilldale Registered Providers that focus on managing 5.0% 31.9% My Space BeST Specialised Supported Housing prope
Slide 18: ESG & Social Impact
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Slide 19: The Good Economy Impact Report
The Good Economy Impact Report 19
Slide 20: ESG and Impact Embedded within SOHO’s Mission
ESG and Impact Embedded within SOHO’s Mission Work specification updated to Template lease now includes help make properties more ‘green’ clauses to drive resilient to the physical ongoing environmental effects of climate change improvements (e.g. flooding, heatwaves) Triple Point is a Group Higher
Slide 21: Green Sky Thinking: A Sector-First Retrofit Initiative
Green Sky Thinking: A Sector-First Retrofit Initiative Key highlights • SOHO is launching a sector-first initiative to bring its whole portfolio up to an EPC of ‘C’ or above • Buildings are the 2nd largest source of emissions in the UK1 • Environmental regulations for landlords are rapidly tightenin
Slide 22: Years on from Winterbourne View
10 Years on from Winterbourne View The current situation1 • May 2021 marks 10 years since the Winterbourne View abuse scandal • Since then, the government has tried to accelerate the move to community- based care • The government wants to reduce the number of people with long-term care needs in hosp
Slide 23: Outlook
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Slide 24: Outlook
Outlook Focus on deploying Focus on ESG and Impact Investment into energy Continued active remaining debt funding performance against efficiency to ensure long engagement with into high quality income clearly defined metrics term sustainability of the lessees producing properties and goals portfolio
Slide 25: SOHO at a glance
SOHO at a glance Parklands Significant unmet demand for Specialised Supported Housing Barnsley Long-term inflation-linked leases which generate resilient rental income 100% of inflation-linked dividend targets met, providing investors with a cumulative total shareholder return of 26.5% since IPO1 Fo
Slide 26: Appendix
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Slide 27: 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 28: Investment Manager Team Overview
Investment Manager Team Overview BEN BEATON JAMES CRANMER Managing Partner Managing Partner 167 STAFF 32 INVOLVED WITH SOHO ASSET & FUND INVESTMENT LEGAL & COMPLIANCE MANAGEMENT MAX SHENKMAN ISOBEL GUNN-BROWN JUSTIN HUBBLE 12 STAFF 13 STAFF 4 STAFF 28
Slide 29: 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 30: 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 31: 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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