www.nottinghillhousing.org.uk
December 2012 Kate Davies Chief Executive Paul Phillips Finance Director Andrew Sugden Assistant Finance Director
Notting Hill Housing Trust Kate Davies Chief Executive Paul - - PowerPoint PPT Presentation
Notting Hill Housing Trust Kate Davies Chief Executive Paul Phillips Finance Director Andrew Sugden Assistant Finance Director December 2012 www.nottinghillhousing.org.uk Disclaimer For the purposes of the following disclaimer, references
www.nottinghillhousing.org.uk
December 2012 Kate Davies Chief Executive Paul Phillips Finance Director Andrew Sugden Assistant Finance Director
For the purposes of the following disclaimer, references to this presentation shall mean these presentation slides and shall be deemed to include references to any related speeches made by or to be made by the management of Notting Hill Housing Trust (NHHT), any questions and answers in relation thereto and any other related verbal or written communications. This presentation may only be communicated or caused to be communicated in the United Kingdom to persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or high net worth entities who fall within Article 49(2)(a) to (d) of the Order (all such persons being referred to as “relevant persons”). Any investment or investment activity to which this presentation relates is available only to relevant persons and will be engaged only with relevant persons. This presentation is being directed at you solely in your capacity as a relevant person (as defined above) for your information and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose, without the prior written consent of NHHT. The information in this presentation is confidential and subject to change without notice, its accuracy is not guaranteed, and it may be incomplete and is condensed. This presentation will be superseded by the final version of the prospectus or offering document relating to the proposed transaction and where there is a discrepancy between the information in this presentation and in the final offering circular, that contained in the final offering circular takes precedence. These presentation slides may contain certain statements, statistics and projections that are or may be forward-looking. The accuracy and completeness of all such statements, is not warranted or guaranteed. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. Although NHHT believes that the expectations reflected in such statements are reasonable, no assurance, representation or warranty can be given that such expectations will prove to be correct. There are a number of factors which could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Issuer. It is an advertisement and does not comprise a prospectus for the purposes of EU Directive 2003/71/EC and/or Part VI of the Financial Services and Markets Act 2000 of the United Kingdom or otherwise. The definitive terms of the securities described herein will be described in the final version of the prospectus. Investors should not subscribe for any securities referred to herein except on the basis of information contained in the final form of the offering circular. When available, the final offering circular will be made available to the public in accordance with EU Directive 2003/71/EC and/or Part VI of the Financial Services and Markets Act 2000.
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Introduction
Overview of Notting Hill Housing Group
Development Programme
Operational Review
Financial Review
Treasury Policies
Expected Issue and Security Summary
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Bridges Wharf, Battersea Harmony, West Middlesex Hospital Myddelton Street, Islington
roots in the Royal Borough of Kensington & Chelsea and the London Borough of Hammersmith & Fulham
value of £6.3 billion
financials and a measured approach to balance sheet management
financial strength
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Colville Square, W11 Park Village, Camden Earls Court Mansions, SW5
formed in 1963
with primary focus on general needs housing in London
experienced board
sector
and respond to Welfare Reform
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London which was acquired as part of Presentation Housing Association
3rd largest in the country (£58m)
development until 2015
£120m, increasing size to £300m
membership
Overview Recent Developments
Notting Hill Housing Trust (“NHHT”) The Issuer and major asset
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Touareg Trust Student accommodation Notting Hill Home Ownership Shared
Notting Hill Commercial Properties Investment vehicle (for build for sale
Notting Hill Market Rent Market rent Registered with the HCA with Charitable Rules Presentation Market Rent Market rent
NHHG Properties Units Social Rented 15,872 Shared Ownership Housing 4,406 Temporary Housing 2,298 Supported Housing 1,348 Student Accommodation 839 Market Rent 698 Intermediate Rent 54 Leasehold in Management 1,620
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Board Members Executive Management Team
Paul Hodgkinson (Chairman) Alex Phillips Sophie Warner Debra Yudolph Mohan Yogendran Sue Hunt Linde Carr Bukky Bird Kate Davies (Chief Executive) Paul Phillips (Finance) John Hughes (Development) Andy Belton (Operations) Andrew Muir (Corporate Services) Kath King (Asset Management) Alastair Moss
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As of 31 March 2012
Group Stock Map 27,135 properties under management
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Average gross cost per social rented unit - £92,500
Borough Units Share of Total Hammersmith & Fulham 4,688 17% Kensington & Chelsea 4,281 16% Hounslow 2,688 10% Lambeth 2,593 10% Ealing 2,283 8%
Top five locations of NHHG assets (61% of all stock)
Bramham Gardens, Kensington & Chelsea, SW5 Fabrik, Brixton, SE5
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2010 - Acquisition of Presentation 5,000 10,000 15,000 20,000 25,000 30,000 2006 2007 2008 2009 2010 Leasehold in management Supported Housing Student Accommodation Intermediate Rent Market Rent Leased Housing Temporary Housing Shared Ownership Social Rented
2008 2009 2010 2011 2012 30,000 25,000 20,000 15,000 10,000 5,000 Leasehold in Management Supported Housing Student Accommodation Intermediate Rent Market Rent Leased Housing Temporary Housing Shared Ownership Social Rented
Great Eastern Quays, E6
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control/ownership and 66% have planning permission in place
£3.4m per annum
homes p.a. but may increase to 1,500 (including commercial development)
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rent and 32 shared ownership
Bridges Wharf, Battersea, SW11
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Measure 2011 2012 Comments Homes completed 895 1,580 High levels of completions to meet HCA 2011 cut off for "old" grant rate on a lot of schemes Sales time to completion (weeks) 7.8 14 31 March a peak - falling steadily ever since - now 9 weeks Rent collection rate 98.9% 100% Rent collection rates improving Rent losses due to voids 1.98% 1.60% Voids improving Customer satisfaction 67% 74% Customer satisfaction up from 58% to 74% over two years, but still a way to go
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Issue Description NHHT Impact Under occupation Limits benefit payments to working age households deemed to be under-occupying We estimate that about £1.2m of income (1.2%) is at risk Benefits cap (From April 2013) The maximum benefit payable to a non working household will be £26,000 pa We estimate that amount at risk is about £0.6m Universal credit Housing benefit will be paid to tenants – phasing in from 2013 to 2017 Additional training to housing
withstand a doubling of arrears Affordable rent Ability to charge higher rents Capped rents at £244pw The social rented housing business has an expected 2012/13 turnover of £97m (28%
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4% 49% 23% 24%
Social housing rent via Housing Benefit from tenants of working age Social housing rent via Housing Benefit from tenants not of working age Social housing rent not from Housing Benefit Other turnover
Small proportion of turnover impacted by Universal Credit
debit/standing order and 26% by swipe cards
hope to replicate this upon implementation of Universal Credit
Myddelton Street, Islington
£47.7m
remains low at 42% versus G15 average of 45%
available of £225m (at 31 March 2012)
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Year Ending 31 March 2012 Historical 5-Year Performance
96%
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Group highlights - five year summary 2011 2010 2009 2008 For the year ended 31 March Restated Statistics Operating Surplus (£m) 40.9 29.7 19.1 30.8 Housing Assets at Cost (£m) 2,226 2,130 1,279 1,223 Operating Margin 16% 14% 12% 16% Rent losses (void and bad debts as % of rent and service charges receivable) 1% 4% 4% 4% Rent arrears (gross arrears as % of rent and service charges receivable) 12% 14% 10% 11% Gearing (total loans as % housing properties at cost) 37% 38% 34% 27% 2012 47.7 2,404 22% 2% 11% 42% Surplus after Interest and Tax (£m) 9.8 8.1 5.9 19.8 31.6
661 London Road, Hounslow
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NHHG Debt Maturity Profile
Summary of NHHG Debt Position at 31 March 2012
21 years
4.03%
0.58%
£1,008m
£225m
£16m
Loan Covenants
Strong interest rate management is optimised with the use of derivatives Maintain prudent level of variable rate debt (greater flexibility for sales receipts) Circa 7,000 unencumbered properties remain in NHHT after bond issue
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Latest NHHG Debt Position NHHT Debt Mix Position
62%
28%
10% Facilities (£m) Drawn (£m) Undrawn (£m) Group 1,244 997 247 NHHT Only 832 672 160
Nevern Square, Earl’s Court, London
Notting Hill Housing Trust
£250 million
Aa3 (negative outlook)
Secured on 1,927 properties Secured investors rank senior to Social Housing Grant
105% EUV-SH, 115% MV-ST
Compliance certificates, accounts, meetings on request
General Corporate purposes
Barclays, Goldman Sachs and Lloyds Bank
Prudential Trustee Company Limited
Following completion of the roadshow (subject to market conditions)
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value as security for bondholders
within London
rent and supported housing units
vacant possession value
security
Number of Units Value for Bond Security Purposes Secured Amount EUV–SH 100 6.6 6.3 MV–T 1,764 359.7 312.8 Nil value 63 nil nil Total 1,927 366.3 319.1 Number of Units Social Rented 1,812 Supported Housing 32 Keyworker Rented 20 Nil value 63 Total 1,927
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properties in 5 core London locations
sector
borrowing capacity to invest in future high value housing development
credit rating from Moody’s at Aa3
possession basis
to political changes
Swanscombe in Holland Park W11
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