Genesis’ property portfolio

Portfolio comprises 33,000 properties. 27,000 are owned and the remainder managed on behalf of other landlords

– work in 88 local authorities– 50 per cent of Genesis activity is located

within five local authorities– 14 additional local authorities cover 30% of

portfolio

Tenure split– 3 in 5 homes are social and affordable rent– 1 in 5 are leasehold and shared ownership– supported housing (1 in 6) and

intermediate/market rent (1 in 12)

Genesis stock

Tomorrow’s housing association

The sector as a whole will need to:

• Be astute in managing their assets

• Be able to develop without grant funding

• Offer a range of products and services to a diverse customer base

• Come up with ideas rather than wait for the regulator

• Demonstrate clear ROI to investors and other stakeholders

• In short, act as commercial businesses.

An innovative example

The English Social Housing Property Index• Developed by IPD* in conjunction with Genesis, Helena Partnerships, LMH,

Spectrum, Gallions, Circle and Orbit

Aims• Demonstrate the economic performance of housing association property assets

through the creation of a return-based performance benchmark/ index• Demonstrate the economic sacrifice or social dividend or policy impact of

accepting below-market level returns

Benefits for participants• Detailed portfolio analysis• Input to risk analysis/ management• Aids selection of properties for investment/ disposal

*IPD = Investment Property Databook

Key elements of IPD performance measurement standard

• Benchmarking social housing portfolios

• Looks at value and allows prospective investors and housing associations to make informed investment decisions

• Performance measurement and reporting on a continuous and regular basis

• Primary focus on activities related to investing in developing and managing property

• Adoption of generally accepted definitions underlying these activities

• Measurement on activity based costing basis

• Measurement of cash flows on accrual basis

• Comprehensive measurement – all property related activities

• Measurement on basis of external value – gross OMV

• External valuation of cash flows and values

€ 00%

STRATEGIC:

Overhead as % of capital valuePolicy impact:

TACTICAL:Total returnCapital growthIncome returnActivity

OPERATIONAL:Operating cost as % of g.i.**Operating costs per propertyVoids as % of OMV*Gross income growth %

Capital supply

00000000Investment management

Transformation function

LettingFacility

managementProperty

management

Consumers/ households/ end users

Benchmark – headline figures

Measure Totals Per property

Number of participants 5

Number of schemes (year end) 1821

Number of units (year end)* 67,311

Total sqm *year end) 4,357,122

Gross income £347.3m £4,668**

Rent passing (year end)* £287.8m £4,276*

Market rent (year end)* £527.4m £7,835*

Operating costs £230.9M £3,241**

Market value (year end) £5.7bn £74,196*

Vacant possession value*** £9.6bn £118,613*

*standing investment and part transaction schemes** standing investments*** where vacant value is known

Headline figures

Structure as % of total capital value by tenure – all property

Direct property performanceTotal return– standing investments

Switzerland

English Social Housing Property BenchmarkTotal return (March 2012) 14.9

Residential total return across Europe (December 2011)

Direct property performanceTotal return per sector/ segment – standing investments

House

Bungalow

Flat w

ith lif

t

Flat w

ithout li

ft

Sheltere

d housin

g

Oth

er housin

g with

share

d

Unattrib

uted h

ousing

Land

Houses

Flats

Oth

er housin

g

Oth

er

All pro

perty0.02.04.06.08.0

10.012.014.016.018.020.0

14.614.9

12.9

14.6

11.2

14.6 14.3

18.014.9

Pe

rce

nta

ge

*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules

Direct property performanceIncome return – standing investments

English Social Housing Property BenchmarkIncome return (March 2012) 2.1

Residential; income return across Europe (December 2011)

Switzerland

Per

cen

tag

e

Direct property performanceIncome return per sector/ segment – standing investments

House

Bungalow

Flat w

ith lif

t

Flat w

ithout li

ft

Sheltere

d housin

g

Oth

er housin

g with

share

d

Unattrib

uted h

ousing

Land

Houses

Flats

Oth

er housin

g

Oth

er

All pro

perty0.0

0.5

1.0

1.5

2.0

2.5

3.02.6

2.8

2.0

1.20.8

2.7

1.4

2.0 2.1

Pe

rce

nta

ge

*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.

Direct property performanceIncome return per tenure – standing investments

Shared o

wnership

Regulate

d rent

Social r

ent

Afford

able re

nt

Inte

rmedia

te re

nt

Mark

et rent

Unattrib

uted

0.00.51.01.52.02.53.03.54.04.55.0

4.3

1.7

3.8

2.0

Pe

rce

nta

ge

*’Regulated, affordable and market rent’ is left out of the analysis due to compliance with IPD’s confidentiality rules

Direct property performanceTotal operating costs per sector – held properties

*For some markets certain measures are available but not included in Market Data publications and therefore not shown in this analysis

Houses Flats Other housing Total

As % of gross income 61.2 80.0 76.7 70.1

£ per m2 36.96 63.30 103.59 51.65

£ per property 3,959 3,614 3,086 3,241

Direct property performanceBreakdown of operating costs – held properties

Maintenance costs (responsive and planned)

Letting costs

Property management

Fixed costs

Other costs

Total

As % of gross income

44.5 0.1 23.4 0.9 1.9 70.8

£ per m2 2.43 0.04 17.10 0.68 1.40 51.65

£ per property

2035 2 1073 43 88 3,241

Direct property performanceOperating costs as % of gross income by tenure – held properties

*’Regulated, affordable and market rent’ is left out of the analysis due to compliance with IPD’s confidentiality rules.

Per

cen

tag

e

Direct property performanceRanking: operating costs as % of gross income – held properties

*December 2011

Per

cen

tag

e

Direct property performanceRent passing/ Market rent £ per m2 - standing investments

House

Bungalow

Flat w

ith lif

t

Flat w

ithout li

ft

Sheltere

d housin

g

Oth

er housin

g

Unattrib

uted h

ousing

All pro

perty0

20406080

100120140

5467 65

73 7967

99111

123 127110 115

Rent passing per sqm market rent per sqm

*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.

Direct property performanceIncome potential: rent passing as % of market rent by tenure – standing investments

Shared o

wner...

Regulate

d

Social

Afford

able

Inte

rmedia

te

Mark

et rent

Unattrib

uted

0

10

20

30

40

50

60

70

80

90

100

58.48 57.68

92.73

51.23

Rent passing as % market rent - benchmark*Regulated, affordable and market rent is left out of the analysis due to compliance with IPD’s confidentiality issues

Policy impact in 2012Policy impact – only residential – standing investments

English Social Housing Property BenchmarkCapital growth (March 2012) 12.6

Residential: capital growth across Europe (December 2011)

Direct property performanceCapital growth – standing investments

Switzerland

House

Bungalow

Flat w

ith lif

t

Flat w

ithout li

ft

Sheltere

d housin

g

Shared fa

cilitie

s

Unattrib

uted h

ousing

Land

All segm

ents0.02.04.06.08.0

10.012.014.0

Direct property performanceCapital growth – standing investments

*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.