Social Housing Reit Plc · LSE:SOHO
Social Housing Reit — Triple Point Social Housing REIT — H1 2018 Earnings Presentation
33 slides from Social Housing Reit's earnings presentation, Sep 17, 2018
Slide 1: Supported Housing in the UK: 2018 Interim Results Presentation
Supported Housing in the UK 2018 Interim Results Presentation for the period ended 30 June 2018 Boathouse, Lichfield
Slide 2: Agenda and Presentation Team
Agenda and Presentation Team Section Page Presentation Team Highlights 3 BEN Ben joined Triple Point in 2007 to lead the BEATON sourcing and execution of a broad spectrum of Co- Managing investments including renewable energy, long Partner leased infrastructure and property bridge lending. Company O
Slide 3: Highlights
Highlights Boathouse, Lichfield
Slide 4: Operational Highlights For H1 2018
Operational Highlights For H1 2018 Portfolio Gross Annualised Lease Income (£m) ▪ SOHO continues to invest in social housing assets in the UK, focused on 167 assets Supported Housing 116 assets 33.6% ▪ 51 new assets acquired in the period for an aggregate consideration of £46.4 million (excluding tr
Slide 5: Financial Highlights For H1 2018
Financial Highlights For H1 2018 Financial ▪ Total equity raised in the period of £47.5 million through C Share issue ▪ The Company’s unaudited NAV per share as at 30 June 2018: Ordinary Share NAV per share (p) ▪ Ordinary Share: 101.61p (EPRA NAV: 101.61p), increased by 0.77p since 31 Dec 2017 0.46%
Slide 6: Post Balance Sheet: Debt Financing
Post Balance Sheet: Debt Financing Debt Financing ▪ Private placement of loan notes in an amount of £68.5 million with a US life insurance company ▪ The Loan Notes are secured against a portfolio of specialist supported living assets throughout the UK, worth approximately £172.4 million, acquired in
Slide 7: Company Overview
cy Triple Point Social Housing REIT plc Company Overview
Slide 8: Acquisition Trajectory
Acquisition Trajectory ▪ As at 12 September 2018 SOHO had invested funds of £229.8m and total committed funds of £259.6m ▪ Since IPO SOHO has also rejected £260.1m of transactions that met the Company’s investment criteria but were rejected during due diligence Annual Results (Dec-17) Interim Result
Slide 9: Supported Housing Specialist
Supported Housing Specialist Investment Strategy Investment Focus: Supported Housing The Company invests in a diversified portfolio predominantly Moving out of Young adults Relief for family newly developed or repurposed Supported Housing properties residential care leaving home carers or hospital ▪
Slide 10: Portfolio Locations
Portfolio Locations Recent acquisitions: Carden Avenue, Sussex North East Properties: 33 % of funds invested: 16.4% Yorkshire Dallas Street, Nottinghamshire Properties: 11 % of funds invested: 7.2% North West Properties: 62 % of funds invested: 32.5% East Midlands Properties: 15 Wellingborough % of
Slide 11: Diversified Portfolio as at 30 June 2018
Diversified Portfolio as at 30 June 3018 Rental Income by AP (%) % of GAV by AP Inclusion Inclusion My Space My Space Falcon Falcon 9.1% 24.7% 6.3% 19.4% AHS AHS Westmoreland Westmoreland 9.2% Hilldale 7.6% Hilldale BeST BeST 11.8% 19.4% Wings Care Wings Care 8.2% 14.2% IKE IKE Chrysalis Chrysalis 1
Slide 12: Property Types
Property Types Property Types The assets we acquire typically fall under the New Build Purpose Built Adapted Properties following property types: New Build New build property built for supported living in the last 5 years Purpose Built Purpose built property (properties that were built for supported
Slide 13: Portfolio Rental Income Streams
Portfolio Rental Income Streams The assets within the portfolio will typically be subject to inflation-adjusted, long-term (from 20 years to 30 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers. As at 30 June 2018: Lease Term Maturity Profile % (Years) Contracted Rental Inc
Slide 14: Approved Provider's Role
Approved Provider’s Role Approved Providers ▪ The properties in the Current Portfolio are leased across 12 Approved Providers ▪ Prior to entering into a new lease Approved Providers must undertake appropriate due diligence to confirm the suitability and quality of the property ▪ Approved Providers m
Slide 15: The Regulator of Social Housing
The Regulator of Social Housing The Role of the Regulator ▪ The Regulator of Social Housing (“the Regulator”) is responsible for the regulation of the Social Housing sector via the Regulation Committee ▪ All APs are subject to regulation by the Regulator whose stated objectives are to promote the de
Slide 16: Triple Point's Relationship with Housing Associations
Triple Point’s Relationship with Housing Associations Triple Point undertake the following: • Site visit • Review of management information • Meeting with senior management • Regular office visits Ongoing • Review of governance and Board make Initial DD monitoring • Review of portfolio occupancy up
Slide 17: The Market
The Market Demand for Supported Housing Supply 15,640 Supported Housing can: annual shortfall in supported housing for • Government increased its housing spending vulnerable people of working age programme in October last year to £9 billion • enable people with learning disabilities to over the spen
Slide 18: Triple Point Adding Value Through Forward Funded Developments
Triple Point Adding Value Through Forward Funded Developments Forward Funded Status of the forward funded portfolio Portfolio: 14.3% of funds invested and 2018 2019 2020 committed during the period Bradford £3.0m have been on forward Hereford £3.1m funding deals Scunthorpe £1.3m Maximum Commitment N
Slide 19: Financial Results
Financial Results Eldon Lodge, Bradford
Slide 20: Highlights
Highlights Financial Highlights as at 30 June 2018 IFRS NAV: 101.61p (2017: 100.84p) £263 million £190 million EPRA NAV: 101.61p MARKET CAPITALISATION IFRS Valuation (2017: 100.84p) (2017: £208.75 million) (2017: £137.5 million) The IFRS NAV and EPRA NAV per share at 31 Market capitalisation of £263
Slide 21: Statement of Comprehensive Income
Statement of Comprehensive Income Six months ended Period ended 31 30 June 2018 December 2017 (unaudited) (audited) £’000 £’000 Revenue 4,744 1,027 Total expenses (1,873) (1,065) Gross profit 2,871 (38) Changes in fair value of investment properties 3,257 5,639 Operating profit 6,128 5,601 Net finan
Slide 22: Statement of Financial Position
Statement of Financial Position At 30 June 2018 At 31 December 2017 (unaudited) (audited) £’000 £’000 Investment property (IFRS valuation) 190,581 138,512 Trade and other receivables 2,411 12,002 Cash and cash equivalents 63,3461 58,185 Total assets 256,338 208,699 Non-current liabilities 1,154 1,15
Slide 23: Property Valuation
Property Valuation Acquisitions in the portfolio to date of £180.5 million (including purchaser costs) which have been valued by JLL for the interim accounts: • Average net yield on acquisition: 5.91% • Average JLL net yield valuation for interim accounts: 5.32% IFRS property valuation: Property por
Slide 24: Net Asset Value
Net Asset Value NAV Bridge 104 103.5 103 +1.63 -2.25 102.5 102 101.61p 101.5 +1.39 101 100.84p 100.5 100 99.5 99 98.5 98 Opening NAV Operating Profit + Net Financing Property Revaluation Dividends Closing NAV Income (inc. C Share Amortisation) Annual Results (Dec-17) Interim Results (Jun-18) The Val
Slide 25: Outlook
Outlook Brunswick House, Newcastle
Slide 26: Assets acquired across the UK so far in 2018
Since 30 June 2018 • Acquired a further 41 assets across the UK for an aggregate consideration of £46.9 million (excluding purchaser costs), including two forward funded acquisitions • Made further commitments of £4.2m relating to forward funding transactions and exchanges 92 assets acquired • The C
Slide 27: Appendix
Appendix Falcon St, Workington
Slide 28: Supported Housing Lease Dynamics
Supported Housing Lease Dynamics Inflation linked SOHO Typically 20+ lease income (£) years, FRI lease Rent (£) Rent (£) Service provision (£) LA Service charge (£) AP Care Care charge (£) provision (£) Tenancy agreement Care Care service Provider Tenant The Value of Home 28
Slide 29: Current Portfolio
Current Portfolio Wellingborough Purpose built dwellings to a high Long term inflation linked lease: specification: • 20-year (initial term), CPI linked, FRI Bespoke fixture and fittings, lease including: • Landlord has the option to renew in • Wet-room bathroom adaptions year 20 with alarm activati
Slide 30: Team and Infrastructure
Triple Point Team and Infrastructure JAMES CRANMER BEN BEATON Co-Managing Partner Co-Managing Partner 81 STAFF 17 IN SOHO TEAM FUND MANAGEMENT INVESTMENT COMPLIANCE LEGAL SERVICES ISOBEL GUNN-BROWN MAX SHENKMAN MICHAEL BAYER JUSTIN HUBBLE 6 STAFF 7 STAFF 1 STAFF 1 STAFF The Value of Home 30
Slide 31: Team Overview
Team Overview Team Update Multi-disciplined management team combine in house expertise with a wide network of trusted external specialists BEN JAMES MAX RALPH ISOBEL BEATON CRANMER SHENKMAN WEICHELT GUNN- Managing Managing Partner and Investment BROWN Partner Partner Head of Director Head of Investm
Slide 32: Board
Board Chris Phillips, Chairman • Current Non-Exec Chairman of Places for People, the UK’s leading registered social landlord, with over 150,000 properties • 35 years’ experience of real estate and listed companies experience • First Managing Director of Colliers Capital UK Ltd (Colliers commercial r
Slide 33: Important Information
Important Information 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 REI
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