HOMES INTERIM RESULTS PRESENTATION Period ending 31 December 2017 - - PowerPoint PPT Presentation

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HOMES INTERIM RESULTS PRESENTATION Period ending 31 December 2017 - - PowerPoint PPT Presentation

Mar 06, 2023 25 likes •242 views

INLAND HOMES INTERIM RESULTS PRESENTATION Period ending 31 December 2017 March 2018 Half-year highlights Growth in housebuilding operations continues Significant progress being made on partnership pipeline Strong forward sales

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SLIDE 1

March 2018

INLAND HOMES

INTERIM RESULTS PRESENTATION Period ending 31 December 2017

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SLIDE 2

March 2018

Half-year highlights

▪ Growth in housebuilding operations continues ▪ Significant progress being made on partnership pipeline ▪ Strong forward sales position of £38.9m supported by government initiatives ▪ Land bank up 6.3% to 7,372 plots in the period ▪ Revenue* up 26% Y/Y driven by plot and unit sales ▪ Adjusted EPRA NAV per share +1.5% to 97.63p in the period ▪ Interim dividend +30% to 0.65p

Inland Homes PLC - Interim Results 2017

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Tiptree, Essex * Revenue includes value of land sold via a corporate disposal

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SLIDE 3

March 2018

A strategy focused on growth

Inland Homes PLC - Interim Results 2017

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▪ Increase size of land bank ▪ Diversify portfolio with increased number of sites ▪ Add value through planning and development to drive EPRA NAV per share

Growth

▪ Focus on South and South East ▪ Allow 12-24 months to secure planning ▪ T arget challenging and complex brownfield sites – 100% success rate on planning ▪ Sites with short-term income generation preferable

Target specific sites

▪ Secure valuable planning permissions ▪ Capture profits from land sales, speculative development and partnership housing

Maximise value

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SLIDE 4

March 2018

Returns on land dependent on level of risk

Brownfield ▪ Challenging sites, e.g environmental and ecological issues ▪ Well located sites with good transport links ▪ Allow 12-24 months to secure planning ▪ Preferred sites of 100-400 plots ▪ Sites with initial income generation preferred, e.g. short-term leases ▪ ASP of homes approximately £300k

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Greenfield ▪ T arget local authorities without 5 year land supply ▪ Control sites by way of options with minimal up front payment ▪ Planning process includes zoning component ▪ Allow 2-5 years to secure planning ▪ Exercise price at a discount to market value, typically 20% ▪ T

  • tal investment at period end of £7m

Unallocated Greenfield

Return On Capital Employed Initial Risk Capital

Illustrative returns on brownfield and greenfield land

Allocated Greenfield Unallocated Brownfield Allocated Brownfield

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SLIDE 5

March 2018

South and South-East focused portfolio

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Under construction 8% Strategic sites 37% Other 55%

Status of land bank

Houses 43% Flats 57%

T

  • tal land bank split by type
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SLIDE 6

March 2018

Balanced and growing pipeline

< 24 Months 8% 2 - 5 Years 33% > 5 Years 59%

Unit completion timescale

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1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Total Group share Total Group share Total Group share 2015 2016 2017 Land Portfolio

Plots without planning permission Plots with planning permission

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SLIDE 7

March 2018

Lower risk partnership housing to balance business model

▪ Cash received upfront on disposal of land with profit realised ▪ Steady cash income stream over development period ▪ Lower development margin but with lower risk ▪ Forward orders secured ▪ No sales, marketing and funding costs ▪ No construction finance required ▪ Housing market risk avoided ▪ Currently, three partnership projects in progress with further three under negotiation ▪ T arget order book this calendar year £100m

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Whitley Gardens, Southall

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March 2018

Sites in the pipeline

Wilton Park, Beaconsfield

  • Outline planning submitted for 350 homes

and commercial within a parkland setting

  • Delivery of relief road is significant of

which first phase has been constructed

  • Estimated gross development value of

£350m

  • Potential for further residential and

commercial as included in Local Authority’s Preferred option list Cheshunt Lakeside, Hertfordshire

  • Outline planning submitted by Inland for

the 31 acre site comprising 1,853 apartment-led mixed use development

  • Regeneration includes new local plaza,

senior accommodation, office, retail, leisure and a two form entry primary school

  • Inland has a 50% interest in 18 acres of

the site upon which 1,317 apartments are located

  • Ability to buy out JV partner

Appletree Farm, Cressing

  • Inland controls this 13.5 acre site within

the green belt via an option

  • The site has been identified by Braintree

District Council in their emerging Local Plan for residential development

  • Two detailed planning applications will

shortly be submitted for 65 apartments and 88 houses

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March 2018

Developments under construction

Lily’s Walk, High Wycombe

  • Former gas works, 3.5 acres site with

planning for 239 residential units and 16,000 sq ft of commercial

  • Highly contaminated brownfield site
  • One and two bedroom apartments with

prices ranging from £250k to £350k

  • Forward sales of £5.5m
  • Gross development value of £75m

Witley Gardens, Southall

  • Former one acre industrial site adjacent to

the Grand Union Canal

  • Planning secured for 57 apartments
  • Land sold to Registered Provider for £6m

with a construction contract for £10.5m

  • Construction 46% complete
  • Build margin 17%

Chapel Riverside, Southampton

  • Development Agreement with

Southampton City Council over 9 acres of water fronted brownfield site

  • Planning secured for 457 residential

apartments and 60,000 sq ft of commercial

  • Complex site which involves a major

archeological dig, sea defences and relocation of settlement tanks

  • Gross development value of £49m
  • HCA funding agreed for the development

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SLIDE 10

March 2018

Private housebuilding in progress

Inland Homes PLC - Interim Results 2017

10 H1 2017 H1 2016 Change % Open Outlets 9 6 50.0 Net reservation rate 0.81 0.58 28.4 Private reservations (homes) 141 64 120.3 Forward order book (£m) 38.9 31.8 18.9 Private completions (homes) 96 87 10.3 Private ASP (£'000) 322 319 0.9 Affordable completions (homes) 34 14 142.9

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SLIDE 11

March 2018

Stable market environment

▪ Continuing to see good demand for properties under £400k ▪ Strong net reservation rate in 2018 at an average of 1.0 unit per active site ▪ Pricing remains firm, supported by the strong reservation rate ▪ Partnership housing market is robust with

  • ngoing discussions on a number of sites

▪ Strong appetite from housebuilders and RP’s for consented land

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St John’s, Chelmsford

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March 2018

Financial summary

Inland Homes PLC - Interim Results 2017

12 H1 2017 H1 2016 Change % Revenue (£m) 61.2 48.6* 26.0 Profit before Tax (£m) 5.4 5.0 8.5 Diluted EPS 2.08p 1.78p 16.9 Dividend 0.65p 0.5p 30.0 EPRA NAV per share 97.63p 92.34p 5.7 Gearing 51.8% 66.1% EPRA Gearing 35.6% 42.0%

* Includes value of land sold via a corporate disposal

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March 2018

Income statement

Inland Homes PLC - Interim Results 2017

13 H1 2017 H1 2016 Change %

£m £m

Revenue 61.2 48.6* 25.9 Cost of sales (49.8) (35.7) 39.5 Gross profit 11.4 12.9

  • 11.6

Administrative expenses (5.0) (4.1) 22.0 Operating profit 6.4 8.8

  • 27.3

Net finance cost (1.6) (3.6)

  • 55.6

Profit before tax and share of profits from associates and JVs 4.8 5.2

  • 7.7

Share of profit of associates and JVs 0.6 (0.2) Profit before tax 5.4 5.0 8.0

*Includes value of land via a corporate disposal

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March 2018

Revenue analysis

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* Revenue and gross profit includes value of land sold via a corporate disposal

  • 10

10 20 30 40 50 60 70 Dec 2017 Revenue Dec 2017 Gross profit Dec 2016 Revenue* Dec 2016 Gross profit*

Land sales Housebuilding Contract income Rental income Other

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March 2018

Balance sheet

Inland Homes PLC - Interim Results 2017

15 H1 2017 H1 2016 Change % Investment properties (£m)

53.6 52.1 2.9

Investment in associate and JVs (£m)

27.8 24.7 12.6

Stock and WIP (£m)

137.1 148.1

  • 7.4

Land debtors (£m)

16.8 10.0 68.0

Land creditors (£m)

  • 23.8
  • 22.1

7.7

Other (£m)

  • 6.9
  • 15.8
  • 56.3

Net borrowings (£m)

  • 69.9
  • 78.4
  • 10.8

Net assets (£m)

134.7 118.6 13.6

Adjusted EPRA NAV (£m)

196.3 186.5 5.3

Adjusted EPRA NAV per share (p)

97.63 92.34 5.7

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SLIDE 16

March 2018

Debt liquidity

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5 10 15 20 25 30 35 40 2018 2019 2020 2021 2022 £ m

Debt maturity as at 31 December 2017

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March 2018

Movement in NAV

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190 191 192 193 194 195 196 197 198 199 200 Jun 17 Profit for period Change in unrealised profit Other Dec 17

EPRA NAV £m

194.4 4.4 (2.3) (0.2) 196.3

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March 2018

Summary and outlook

▪ Residential market for core operating areas remains strong ▪ Transformation into volume private and partnership housebuilding on track ▪ Cross-party political environment remains supportive to housebuilding and to increase housing numbers

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March 2018

Appendices

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Inland Homes PLC - Interim Results 2017 Church Road, Ashford

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March 2018

Key metrics as at 31 December

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  • Note. 2016 Revenue includes value of land sold via a corporate disposal
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March 2018

Joint ventures

Project Helix

▪ Platform to acquire sites between £7-20m ▪ 357 units on one site ▪ 20% equity from Inland ▪ 15% priority returns for both

  • parties. Minimum 40% to Inland

with enhanced returns thereafter ▪ Inland’s investment - £3.1m

Delamare Road, Cheshunt

▪ 1,319 units ▪ 50:50 JV with leverage ▪ Inland’s investment - £10.7m ▪ 50% share of profits ▪ Management fee to Inland

Bucknalls Lane, Garston

▪ 100 units ▪ 50:50 JV with landowner ▪ Inland’s investment - £4.6m ▪ 50% share of profits ▪ Management fee to Inland

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