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
STRATEGIC:
Overhead as % of capital value
Policy impact:
Capital supply
TACTICAL:
Total return
Capital growth
Income return
Activity
Investment
management
OPERATIONAL:
Operating cost as % of g.i.**
Operating costs per property
Voids as % of OMV*
Gross income growth %
Property
management
Facility 0%
management€ 0
Consumers/ households/ end users
Transformation
function
Letting
Benchmark – headline figures
Measure
Totals
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
Per property
Headline figures
Structure as % of total capital value by tenure – all property
Direct property performance
Total return– standing investments
English Social Housing Property Benchmark
Total return (March 2012)
14.9
Residential total return across Europe (December 2011)
Switzerland
Direct property performance
Percentage
Total return per sector/ segment – standing investments
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
18.0
14.6
14.9
14.6
14.6 14.3
12.9
14.9
11.2
*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules
Direct property performance
Income return – standing investments
English Social Housing Property Benchmark
Income return (March 2012)
2.1
Percentage
Residential; income return across Europe (December 2011)
Switzerland
Direct property performance
Income return per sector/ segment – standing investments
3.0
2.8
2.7
2.6
Percentage
2.5
2.0
1.5
1.0
2.0
2.0
2.1
1.4
1.2
0.8
0.5
0.0
*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.
Direct property performance
Percentage
Income return per tenure – standing investments
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
4.3
3.8
1.7
2.0
*’Regulated, affordable and market rent’ is left out of the analysis due to compliance with IPD’s confidentiality rules
Direct property performance
Total operating costs per sector – held properties
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
*For some markets certain measures are available but not included in Market Data publications and therefore not shown in
this analysis
Direct property performance
Breakdown 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 performance
Percentage
Operating 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.
Direct property performance
Percentage
Ranking: operating costs as % of gross income – held
properties
*December 2011
Direct property performance
Rent passing/ Market rent £ per m2 - standing investments
140
120
100
80
60
40
20
0
123
127
99
73
54
67
79
65
Rent passing per sqm
115
110
111
67
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 performance
Income potential: rent passing as % of market rent by
tenure – standing investments
100
90
80
70
60
50
40
30
20
10
0
92.73
58.48
57.68
Rent passing as % market rent - benchmark
51.23
Rent potential - benchmark
*Regulated, affordable and market rent is left out of the analysis due to compliance with IPD’s confidentiality issues
Policy impact in 2012
Policy impact – only residential – standing investments
Direct property performance
Capital growth – standing investments
English Social Housing Property Benchmark
Capital growth (March 2012)
12.6
Residential: capital growth across Europe (December 2011)
Switzerland
Direct property performance
Capital growth – standing investments
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.