Great Places Housing Group - Investor Presentation March 2018

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Great Places Housing Group - Investor Presentation March 2018
Great Places
      Housing Group
Investor Presentation
                      March 2018
                                 Tony Davison - Chair
                Matthew Harrison - Chief Executive
            Phil Elvy - Executive Director of Finance
                         Kal Kay - Director of Finance
Great Places Housing Group - Investor Presentation March 2018
Disclaimer
The information contained in this investor presentation (the         a result of relying on any statement in or omission from this       This information presented herein is an advertisement
“Presentation”) has been prepared to assist interested parties       Presentation or any other information and any such liability        and does not comprise a prospectus for the purposes of
in making their own evaluation of Great Places Housing Group         is expressly disclaimed. This Presentation includes certain         EU Directive 2003/71/EC (as amended) (the “Prospectus
Limited (“Great Places”). This Presentation in relation to a         statements, estimates and projections prepared and provided         Directive”) and/or Part VI of the Financial Services and
proposed offering of bonds of Great Places (the “Bonds”)             by the management of Great Places with respect to its               Markets Act 2000. This Presentation does not constitute or
is believed to be in all material respects accurate, although        anticipated future performance. Such statements, estimates          form part of, and should not be construed as, an offer to
it has not been independently verified by Great Places and           and projections reflect various assumptions by Great Places’        sell, or the solicitation or invitation of any offer to buy or
does not purport to be all-inclusive. This presentation and          management concerning anticipated results and have been             subscribe for, Bonds in any jurisdiction or an inducement to
its contents are strictly confidential, are intended for use by      included solely for illustrative purposes. No representations       enter into investment activity. No part of this Presentation,
the recipient for information purposes only and may not be           are made as to the accuracy of such statements, estimates           nor the fact of its distribution, should form the basis of, or
reproduced in any form or further distributed to any other           or projections or with respect to any other materials herein.       be relied on in connection with, any contract or commitment
person or published, in whole or part, for any purpose. Failure      Actual results may vary from the projected results contained        or investment decision whatsoever. Any purchase of the
to comply with this restriction may constitute a violation of        herein.                                                             Bonds should be made solely on the basis of the final offering
applicable securities laws. By reading this Presentation, you                                                                            circular to be prepared, which will contain the definitive terms
agree to be bound by the following limitations. Neither Great        The Bonds have not been and will not be registered under the        of the transactions described herein and be made public
Places nor any of its representative directors, officers, board      U.S. Securities Act 1933, as amended (the “Securities Act”), or     in accordance with the Prospectus Directive and investors
members, managers, agents, employees or advisers makes any           the laws of any state or other jurisdiction of the United States,   may obtain a copy of such final document from the National
representations or warranty (express or implied) or accepts          and may not be offered or sold within the United States, or         Storage Mechanism.
any responsibility as to or in relation to the accuracy or           for the account or benefit of, U.S. Persons (as such terms are
completeness of the information in this Presentation (and no         defined in the Regulation S under the Securities Act), absent       The distribution of this Presentation and other information
one is authorised to do so on behalf of any of them) and (save       registration or an exemption form, or in a transaction not          in connection with the Bonds in certain jurisdictions may
in the case of fraud) any liability in respect of such information   subject to, the registration requirements of the Securities         be restricted by law and persons into whose possession
or any inaccuracy therein or omission therefrom is hereby            Act and applicable state laws. This Presentation is made            this Presentation or any document or other information
expressly disclaimed, in particular, if for reasons of commercial    to and is directed only at persons who are (a) “Investment          referred to herein comes should inform themselves about
confidentiality information on certain matters that might be of      professionals” as defined under Article 19 of the Financial         and observe any such restrictions. Any failure to comply with
relevance to a prospective purchaser has not been included in        Services and Markets Act 2000 (Financial Promotion) Order           these restrictions may constitute a violation of the securities
this Presentation.                                                   2005, as amended (the “Order”) or (b) high net worth entities       laws of any such jurisdiction. This Presentation and any
                                                                     falling within Article 49(2)(a) to (d) of the Order (all such       materials distributed in connection with this Presentation
No representation or warranty is given as to the achievement         persons together being referred to as “relevant persons”).          are not directed to, or intended for distribution to or use by,
or reasonableness of any projections, estimates, prospects           Any person who is not a relevant person should not act or rely      any person or entity that is a citizen or resident or located in
or returns contained in this Presentation or any other               on this Presentation or any of its contents. Any investment         any locality, state, country or other jurisdiction where such
information. None of Great Places, Banco Santander S.A.              or investment activity to which this Presentation relates is        distribution, publication, availability or use would be contrary
(“Santander”), any of their respective directors, board              available only to and will only be engaged in with such relevant    to law or regulation or which would require any registration or
members, employees, affiliates, advisors and representatives         persons.                                                            licensing within such jurisdiction. Great Places does not accept
or any other person connected to any of them shall be liable                                                                             any liability to any person in relation to the distribution or
(whether in negligence or otherwise) for any direct, indirect                                                                            possession of this presentation in or from any jurisdiction.
or consequential loss or damage suffered by any person as

                                                                                                                                                                      Investor Presentation March 2018 | 02
Great Places Housing Group - Investor Presentation March 2018
1 | Highlights
• We own or manage over 19,000 homes across the North West and Yorkshire
• Good mix of properties by type and geography
• High demand across the entire property portfolio
• Impact of welfare reform has been well managed and mitigated
• Clear and uncomplicated organisational structure
• Strengthened governance structure, and experienced board
• Experienced executive team
• Strong development track record and good portfolio mix
• Increasingly financially robust
• Modest exposure to property sales
• Record turnover achieved in 2017
• Our most recent stability test has confirmed G1/V1 status
• Benchmarked strongly against our peers

Our refreshed three year Corporate Plan will be in place for April 2018 and will set out our short and medium term plans
and long term ambitions.

                                                                                                                  Investor Presentation March 2018 | 03
Great Places Housing Group - Investor Presentation March 2018
2 | Who we are

                 Investor Presentation March 2018 | 04
Great Places Housing Group - Investor Presentation March 2018
2.1 | Vision and Values
                                                                                                                      Our
About Great Places Housing Group                                                                                     values
                                                            Great           • We are fair, open
We have over 19,000 properties across the North
                                                           homes
                                                       Maximis
                                                                ing o          and accountable
West and Yorkshire. Our portfolio includes social       investme ur
rented homes, affordable rented homes, market        sustainab nt in        • We know, respect and
                                                              le homes
rent, shared ownership, homes for key workers,                                 care about our customers
and accommodation and services.
                                                                            • We appreciate the effort of
The key entities in the group are:                                             everyone who works here
• Great Places Housing Group – provider of               Gr                • We promote partnerships,
   central and corporate services such as finance,     commuenat               efficiency and value for money
   HR and Business Systems to all group members.      Bu       ities
                                                         ilding su
                                                     vibrant c ccessful,    • We passionately embrace
                                                               ommuniti
                                                                       es
• Great Places Housing Association – general                                  creativity, change and
   needs rented homes, resident services, and                                  innovation
   supported housing, now operating under our
   new ‘Independence and Wellbeing’ model to
   reflect a greater emphasis on empowering
   customers to live independently.
                                                            Great
                                                           people               Regulator for
                                                                                            rated
• Plumlife – property sales, managing our Shared    Providing
                                                               outs          social housing
   Ownership and market rent portfolio, and            custome tanding            us G1/V1 in
                                                               r serv
   leasehold services.                                   and supp ice          November 2017
                                                                  ort
                                                                                                            Participated
                                                                                                                         in the
• Cube Great Places – developing new market                                                                pilot IDA in 2
                                                                                                                           015
   homes for sale and rent.

                                                                                             Investor Presentation March 2018 | 05
Great Places Housing Group - Investor Presentation March 2018
2.2 | A brief history

1970s                             1970 | Manchester Methodist Housing Association (MMHA) is formed                   1975 | S alford Community Housing Association founded

1980s                              1980 | BME specialist Ashiana
                                           Housing Association set up
                                                                                           1986 | Selhal Housing Association established, incorporating Community Housing Association
                                                                                                   and stock from the YWCA

1990s                                                                   1995 | MMHA takes over First Peterloo

2000s                     2000 | Salford CHA becomes Space New Living
                                                                                       2001 | Longridge and Shaw Heath,
                                                                                               Knutsford, acquired by MMHA          2005 | MMHA merges with Selhal, creating
                                                                                                                                            Manchester Methodist Housing Group (MMHG)
                 2005 | Affordable home ownership
                         brand Plumlife established                                                                                                                 2007 | S pace New Living
                                                                2006 | Great Places Housing Group is formed with merger of MMHG and Ashiana                                joins Great Places
                         2007 | Wybourn and                                                                                                                                Housing Group
                                 Richmond Park,                2008 | Windmill Housing Association          2009 | Great Places is simplified so
                                 acquired in                           becomes part of MMHA                          that just one name is used
                                 Sheffield

2010s                      2011 | Large-scale Oldham PFI
                                   housing management contract won
                                                                              2012 | Debut bond issue of £200m            2013 | Repairs service
                                                                                                                           brought in house
                                                                                                                                                          2013 | Tony Davison becomes
                                                                                                                                                                  group chairman

                                             2015 | Launched our own materials               2015 | Developed 750          2017 | Great Places achieves a record turnover of £109.4m
 2013 | Matt Harrison                                                                                 properties - more
                                                      distribution centre to further
         becomes chief                                                                                 homes than
                                                      enhance the repairs service.                                                          2017 | Great Places head office
         executive                                                                                     ever before
                                                                                                                                                    moves to Christie Fields

                                                                                                                                                                 Investor Presentation March 2018 | 06
Great Places Housing Group - Investor Presentation March 2018
2.3 | Profit for purpose

                                     Great Places                                               Operating costs
                                                                                                per property
                                        makes                                                   reduced
                                                                                                by 6%
                                                                                                                   £100K more          Record

                                     profit for
                                                                                                                                               rs
                                                                                                                   cash collected    low arrea
                                                                                                                                        2.6 %
                                                                                                                   despite 1%
                                         a                                                                         rent cut
                    In 2 0 1

                                     purpose!

                                                                                  n g:
                                                                              lu di
                      6 -1

                                                                         in c
                               we
                                                                             ys
                          7

                                    g en                                 a                                        73 poorly
                                           erated e                 in w
                                                      fficiencies                                                 performing homes
                                                                                                                  disposed of,
                                                                                                                  generating
                                                                                                                  £5.1m
                Bringing sub-
                contractor work
                in-house to                                     Procurement
                save £350k                                      savings of                          32 market
                year-on-year                                    £330k                               sales worth
                                                                                                    £6m

  Our Distribution                             These all                                                                               Great Places is a profit-for-purpose organisation.
                                              contribute to                                                                            We aim to be as efficient as possible and remain a
  Centre has saved
                                              £2.2m of Building                                                                        top-quartile performer. However, we then choose to use
  £147k in material
                                              Greatness                                                                                a large chunk of our surplus to go far beyond our landlord
  costs, also improving
                                              savings                                                                                  obligations and realise our vision of Great homes,
  first-time-fix rates
                                              (2016/17)*                                                                               Great communities, Great people.
                                                                         * in 2017/18 we predict £4.9m

                                                                                                                                                                Investor Presentation March 2018 | 07
Great Places Housing Group - Investor Presentation March 2018
2.4 | Group structure

                                                           Great Places
                                                          Housing Group                                              Audit and
        Remuneration                                         Limited
        and Appraisal                                                                                               Assurance
                                                          Non-asset-owning
         committee                                         non-charitable RP                                        committee
                                                          Community Benefit
                                                                Society

                                                                                                                             Co-terminous
                                                                                    Plumlife Homes                                  board
                                 Great Places
                              Housing Association                                       Limited
                                                                                      100% subsidiary
                                  100% subsidiary
                                                                                       Asset-owning
                              Asset-owning, charitable
                                                                                     non-charitable RP
                                  RP, Community
                                                                                    Community Benefit
                                  Benefit Society
                                                                                          Society
                                                            Terra Nova
      Cube Great                                           Developments
     Places Limited                                           Limited                                    The Group structure comprises five
     Company limited by                                    Company limited by
   shares. Development of                                                                                 companies led by the group board
                                                          shares. Design & build
    properties for outright                                                                               supported by two committees and
                                                         contracts - development
     sale and market rent                                 of residential property                           managed by our Chief Executive
                                                               (VAT Shelter)                              (Matthew Harrison) and a team of
                                                                                                                        Executive Directors.

                                                                                                                 Investor Presentation March 2018 | 08
Great Places Housing Group - Investor Presentation March 2018
2.5 | GPHG and Cube board members
       Tony Davison                             Jerry Green                             Brendan Nevin
       Chair                                    Chair of Audit & Assurance              member of the Audit &
       Appointed: 19 September 2013             Committee                               Assurance Committee
       Tony is a highly experienced             Appointed: 5 December 2013              Appointed: 11 September 2014
       businessman. Former Managing             Jerry uses his 20 years’ experience     Brendan has spent more than 30
       Director at company Bostik, he served    running a commercial property           years working in the housing and
       as a local councillor, Chair of          investment company to act as an         regeneration sector. He played a lead
       Governors of a College of Further        advisor to a number of funders          role in developing the Housing Market
       Education, a Governor of                 investing in the sector. A member of    Renewal (HMR) urban renewal
       Manchester Metropolitan University       the leadership board at Manchester      programme and his research and
       and is currently Chairman of Nantwich    Business School and a Trustee of        policy work is regularly published.
       Town Football Club. Tony is also a       Macclesfield Academy, he has held
       member of the Remuneration &             high-profile roles at Yates Group and
       Appraisal Committee at Great Places.     Gradus Group Ltd.

       Jenny Rayner                             David Robinson                          Celia Cashman
       Deputy Chair, Chair of Remuneration      member of the Remuneration              member of the Audit &
       & Appraisal Committee                    & Appraisal Committee (also a           Assurance Committee
       Appointed: 19 September 2013             Board member of Cube)                   Appointed: 11 September 2014
       Jenny has for 17 years been an           Appointed: 19 September 2013            Celia is a retired housing professional
       independent consultant and trainer       David is a member of the                who has spent almost 40 years
       on corporate governance, internal        Remuneration & Appraisal Committee.     working in a wide variety of housing
       audit and risk management.               He is the Chairman and former MD        and regeneration environments
       She formerly enjoyed a 21-year career    of specialist retailer Richer Sounds,   across the country. Her career history
       with ICI and Zeneca in a variety of      Managing Director of a privately        includes housing services director
       commercial management roles and          -owned property development and         posts in a number of large housing
       as a chief internal auditor. Jenny has   investment company and a Trustee of     associations, most recently at
       been a board member in the social        United Learning, one of the country’s   Yorkshire Housing, together with
       housing sector for over 10 years.        largest Multi Academy Trusts.           several years as a housing consultant.

                                                                                             Investor Presentation March 2018 | 09
Great Places Housing Group - Investor Presentation March 2018
2.5 | GPHG and Cube board members
       Jan Fitzgerald                           Matthew Harrison                          Samantha Young
       member of the Remuneration &             CEO and Executive Board Member            member of the Audit &
       Appraisal Committee                      Appointed: 11 April 2013                  Assurance Committee
       Appointed: 11 September 2014             Matthew joined Great Places in 1993       Appointed: 12 October 2017
       Jan draws on 30 years of experience      and led the organisation through          Sam has over 20 years experience
       working in housing and regeneration.     award winning development before          of working in the public and private
       She held several senior management       being appointed Chief Executive in        sectors at senior management /
       positions at Sheffield City Council,     April 2013. He has vast experience in     director level. She is an IT professional
       including director of community          development and urban regeneration        who has led major IT projects. Sam is
       services. Her high-profile work has      and has led on many iconic developments   an experienced non executive director
       seen her play a leading role in the      that have supported the growth of the     and currently sits on the Board of
       regeneration of the city’s Park Hill     business. He has also been involved       a company in the educational and
       and Norfolk Park.                        with a Local Strategic Partnership, has   technology sector. Sam is a member
                                                been a PFI Company Board Member           of the Audit and Assurance
                                                and has supported the NHF in a variety    Committee.
                                                of ways. He is currently a Board
                                                member of the Sheffield Housing
                                                Company and is a Non-Exec Board
                                                Member of another housing provider.

       Will Taylor                              Babar Ahmad
       Chair of Cube Great Places Limited       Cube Great Places Limited
       Appointed: 19 September 2013             Appointed: 12 October 2017
       Will is the Chair of Cube. He is an      Babar is a Chartered Surveyor with
       experienced businessman and              vast experience of acquiring
       chartered surveyor, and was a            residential and commercial land.
       former managing director of the          He has excellent knowledge of land
       Carrington Business Park in Trafford,    markets and the town planning
       part of the multinational Shell Group.   system and has delivered large
                                                regeneration projects including the
                                                only Legacy facility built outside
                                                of London for the 2012 Olympic
                                                Games.

                                                                                               Investor Presentation March 2018 | 10
2.6 | The Executive Team

Matthew Harrison                           Phil Elvy                                     Guy Cresswell                                    Pete Bojar
CEO and Exec Board Member                  Executive Director of Finance                 Executive Director of Customer                   Executive Director of Growth and
                                                                                         Services                                         Assets
Matthew joined Great Places in 1993        Phil has responsibility for ensuring Great    Guy is responsible for the customer-facing       Pete leads our Growth and Assets
and led the organisation through award     Places’ Finance, Business Systems,            side of our business, ensuring the               directorate, being responsible for our
winning development before being           Business Intelligence and Governance          organisation provides a great customer           affordable, market sales and market rent
appointed Chief Executive in April 2013.   functions provide high-quality, back office   experience. Alongside managing our               development programmes, sales, asset
He has vast experience in development      support to the rest of the Group. He is       neighbourhoods, he is also responsible for       investment, compliance and corporate
and urban regeneration and has led on      also in charge of making sure regulatory      our work in Independence and Wellbeing,          Health & Safety. He is a graduate of
many iconic developments that have         and statutory requirements are satisfied.     which supports our more vulnerable               Sheffield Polytechnic and has worked in
supported the growth of the business.      One of Phil’s key challenges is balancing     customers to develop life skills and achieve     housing since 1989, starting his career in
He has also been involved with a Local     the need for the long-term financial          their goals, and is an active member in a        housing management before moving into
Strategic Partnership, has been a PFI      viability and stability of Great Places       number of sector-related partnerships and        development in 1992. He is highly
Company Board Member and has               with risks posed by the Group’s strategic     forums. Guy has extensive experience in          experienced in regeneration and
supported the NHF in a variety of ways.    growth and development objectives.            all aspects of housing but his passion lies in   partnerships and has led some of Great
He is currently a Board member of the      He started his career in utilities and        health and housing, investment in                Places’ most successful, high-profile
Sheffield Housing Company and is a         has worked in the housing sector for          communities and regeneration, and the            schemes.
Non-Exec Board Member of another           nearly 20 years.                              importance of getting right the basics of
housing provider.                                                                        property management.

                                                                                                                                                    Investor Presentation March 2018 | 11
3 | Our properties and our customers

                                       Investor Presentation March 2018 | 12
3.1 | Property profile
                                                                                                                                  Bedroom profile (as at 31st March 2017)
The colours show the number of
properties owned or managed by                                                                                                                    1      2       3        4      5+       Total
Great Places in each local authority area                                                                                                                                       205 10,796
                                                                                                                                    House      63 4,279 5,017 1,232
                                                              Lancaster                                                             Flat    3,967 2,575    35     0               0 6,577
         1 - 250                                                                                                                    Bungalow 163 423       14     5               0    605
                                                                                                                                    Other                                              930
         250 - 500                                                                                                                  Total   4,193 7,277 5,213 1,237             205 18,908
                                                                          Ribble Valley                           Bradford        Other includes shared accommodation
                                                     Wyre
                                                                                            Pendle                                Leeds
         500 - 1,000
                                       Blackpool             Preston
                                                   Fylde                              Burnley
         1,000 - 2,000                                                        Hyndburn
                                                           South Ribble
                                                                                   Rossendale
         2,000+                                                            Blackburn
                                                                Chorley
                                                                                             Rochdale
                                                                           Bolton Bury
                                                                                                     Oldham

                                                                     Wigan        Salford
                                                                                             Tameside
                                                            St Helens                 Manchester
                                                                                                                             Sheffield
                                                                            Trafford          Stockport                                      Rotherham
                                                                   Warrington                                 High Peak

                                                                                                                                  Chesterfield
                                                                                      Cheshire East
                                                           Cheshire West

52%        of our homes are focused
in the urban centres of Manchester,
Salford, Sheffield and Oldham

                                                                                               Stoke

                                                                                                                                                             Investor Presentation March 2018 | 13
3.2 | Housing assets - owned and managed

Housing properties           As at 31    As at 31    As at 31   A history of steady growth
owned / managed             Mar 2015    Mar 2016    Mar 2017
                                                                20,000                                                                                                                 £110
                                                        3.3%    18,000                                                                                                                 £100
                                            3.4%
                                                        5.0%    16,000                                                                                                                 £90
                                3.6%        6.1%                                                                                                                                       £80
                                                                14,000
         Over
                                3.9%                    5.6%
                                3.3%        4.5%                                                                                                                                       £70
        79% ing                                         7.0%    12,000
                                6.3%        6.7%                                                                                                                                       £60
                                                                10,000
   social hous
                                                                                                                                                                                       £50
                                                        8.3%     8,000                                                                                                                 £40
        stock                   9.2%        8.6%
                                                                 6,000                                                                                                                 £30
                                                                 4,000                                                                                                                 £20
                               13.4%                                     2005   2006   2007   2008   2009      2010   2011      2012   2013      2014      2015     2016     2017
                                           15.5%      17.9%
                                                                                                      Properties (Left scale)          Turnover £m (Right scale)
 PFI properties
 Homes managed, but
 owned by third party                                           Operating surplus £m (including sale of fixed assets)
 Leasehold                                                       £35m
 Shared ownership                                                £30m
 Supported housing (incl.
 Sheltered, Extra Care)                                          £25m

 Affordable rent housing                                         £20m
 General needs housing         60.2%       55.5%      52.9%      £15m

TOTAL                         17,515      18,409      18,908     £10m
Properties under               1,029         743         341      £5m
development
                                                                  £0m
Homes owned (but                  56          56          56
managed by a third party)                                                   2011          2012              2013             2014             2015                2016              2017

                                                                                                                                                     Investor Presentation March 2018 | 14
3.3 | Post Grenfell
• We own 6 tall buildings (over 6 storeys / 18m)
• We also manage 8 tall buildings on behalf of others
• None of the tall buildings that we own or manage have any ACM material
• Only one of our tall buildings, Broad Road pictured below, is used as security for the bond
• We are working closely with GM Fire and Rescue Service
• Changes made to the fire evacuation policy at one building
• Tenant vulnerabilities assessed and individual PEEPs (personal exit evacuation plan) developed
• Sprinklers installed at 3 sites with deck access fire safety risk (these were not as a result of Grenfell)
• Review of fire safety at all medium rise properties
• Provision of £1.2m for sprinkler costs for all other tall buildings added into 2018-19 budget

                                    Bowland                                            Broad                                             The
                                     House                                             Road                                              Vibe

                                                                                                               Investor Presentation March 2018 | 15
3.4 | Demand
• Over 120,000 households (4%) in the North West are
   on local authority waiting lists (source HCA figures April
   2016), including 85,000 in Greater Manchester alone.                                             Social        Average           Average                Average
                                                                                                  Housing           Social           Market          Local Housing
• In 2016/17, around 8,000 new dwellings were built                                                Units            Rent              Rent             Allowance
   in Greater Manchester. During that year, Great Places
   built 300 within Greater Manchester and 625 in total. In             March 2014                  9,428           £83.50          £121.73                 £110.83
   addition in South Yorkshire 4,750 homes were built of                March 2015                  9,205           £87.05          £125.55                 £110.64
   which 100 were built by Great Places, while in Lancashire,                                                       £89.29          £125.47                 £112.32
                                                                        March 2016                  9,095
   a further 4,500 were built of which Great Places
   contributed close to 200. (GP figures are just for                   March 2017                  8,853           £88.54          £125.85                 £112.01
   grant-funded build). All of Cube’s market sales were in              January 2018                8,647           £87.74          £127.89                 £111.93
   Greater Manchester.
                                                                      Source: Great Places data
• 64% of Great Places properties are let on first offer.

• Our average relet time is 22 days and we have achieved
   year on year improvement since reporting 33 days in
   March 2014.
                                                                                                                                        “Across the region nearly
                                                                                                                                        44,000 too few homes were
                                                            The development                                                             built between 2011 - 2015 to
Understanding the                                           programme has been                                                          keep pace with demand”
demographics affecting our                                  designed to deliver the type                                                Source: NHF Hometruths 2016/17

market allows the group to                                  of properties needed and as            Our tenancy turnover is 8.0%.
be confident that there is                                  identified by market research          Based on current general needs
strong demand for its current                               and our knowledge of local             tenancies, the average length
property portfolio.                                         demographics.                          is close to 8 years. c30% of
                                                                                                   tenants have been with us over
                                                                                                   10 years and over 50% for
                                                                                                   more than 5 years.

                                                                                                                                        Investor Presentation March 2018 | 16
3.5 | Tenant profile

Long term trend of improving arrears performance
6.0%
                                                                                       Pensioners claiming partial
                                                                                       housing benefit                           4%
5.0%                                                                                   Pensioners not claiming
4.0%                                                                                   housing benefit                            6%
3.0%                                                                                   Pensioners claiming full
                                                                                       housing benefit                            8%
2.0%
1.0%
                                                                                       Working age on full
                                                                                       housing benefit*                          19%
                                                                                       Working age claiming partial
                                                                                                                                 20%
0.0%
                Dec          Dec           Dec              Dec    Dec          Dec    housing benefit
                2012         2013          2014             2015   2016         2017
                                                                                       Working age not claiming
        Current Arrears %     Arrears excluding HB%
                                                                                       housing benefit                           44%
                                                                                       * These are the tenants most at UC risk

                                                                                       Knowing our customer profile helps to predict our Universal Credit exposure
Average relet times (days)
 29
 27                                                                                    Analysis of tenant age and arrears
 25                                                                                    25%                                                                                                6%
                                                                                       20%                                                                                                5%
 23                                                                                                                                                                                       4%
                                                                                       15%
 21                                                                                                                                                                                       3%
                                                                                       10%
 19                                                                                                                                                                                       2%
                                                                                        5%                                                                                                1%
 17                                                                                                                                                                                       0%
            27.1                    23.9                 22.1         22.2              0%        16-24            25-34          35-44       45-54          55-64            65+
 15
         March 2015           March 2016              March 2017   2017/18 Q3                      Proportion of tenants (LH scale)       Average Arrears (RH scale)
        National       North West

                                                                                                                                                      Investor Presentation March 2018 | 17
3.6 | Welfare reform

Number of tenants impacted by under-occupancy penalty                   Only                                % of rent from
2,000
1,800                                                                   59                                  Housing Benefit

                                                                        tenants
1,600
1,400                                                                                                       Housing Benefit
1,200
1,000                                                                   currently affected by
                                                                                                            46.3%
  800                                                                                                       Non Housing Benefit
                                                                        the benefit cap with
  600
  400                                                                   arrears of c£20k                    53.6%
  200
    0                                                                   (as at 31st March
     Apr
    2013
                        Dec
                        2013
                                     Dec
                                     2014
                                             Dec
                                             2015
                                                        Dec
                                                        2016
                                                                 Dec
                                                                 2017
                                                                        2017)

  Number of UC claims                                                                       Universal Credit arrears
                                                                                            (as at 31 March 2017)
   800
   700                                                                                      Universal Credit
   600
   500
                                                                                            £220k
   400                                                                                      Other arrears

   300                                                                                      £1,582k
   200
   100
        0
        Dec                           Dec                 Dec                  Dec
        2012                          2015                2016                 2017
               Number of UC claims

                                                                                                                                  Investor Presentation March 2018 | 18
4 | Development

                  Investor Presentation March 2018 | 19
4.1 | Business Planning
                                                                                                                                                                     Multi scenario
                                                                                                                                                                  stress testing
                                                                                                                                                                                  he
                                                                                                                                                                  to ensure fin lps
                                                                                                                                                                                ancial
                                                                                                                                                                       resilience

    Business plan
    and budget                                                                                                           A+ rating confirmed                               A3 rating confirmed
    2017/2018
                                            people.
    Great homes. Great communities. Great

                                                                                                                   Operating margin
Assumptions                                                     Year 2    Year 3    Year 4    Year 5   Years      35%
                                                               2018/19   2019/20   2020/21   2021/22   6-30

Consumer Price Inflation (CPI)                         WAS                                                        30%
                                                                2.50%     2.25%     2.00%     2.00%    2.00%
Consumer Price Inflation (CPI)                        STRESS    5.00%     5.00%     1.50%     1.50%    1.50%
                                                                                                                  25%
Building inflation                                     WAS     CPI+1.5% CPI+1.5% CPI+1.5% CPI+1.5% CPI+1.5%
Building inflation                                    STRESS   CPI+5.0% CPI+5.0% CPI+5.0% CPI+5.0% CPI+1.5%
                                                                                                                  20%
Major Repairs inflation                                WAS       CPI       CPI       CPI       CPI      CPI
Major Repairs inflation                               STRESS   CPI+5.0% CPI+5.0% CPI+5.0% CPI+5.0%      CPI       15%
Earnings inflation                                     WAS     CPI+1.0% CPI+1.0% CPI+1.5% CPI+1.5% CPI+1.5%               2010/11       2011/12   2012/13   2013/14      2014/15      2015/16    2016/17    2017/18
                                                                                                                           Actual        Actual    Actual    Actual       Actual       Actual     Actual     Actual
Earnings inflation                                    STRESS   CPI+2.5% CPI+2.5% CPI+2.5% CPI+2.5% CPI+1.5%                      Great Places        Moodys peer group             Golden rule

                                                                                                               Sources: Moody’s, Issuers’ data

                                                                                                                                                                              Investor Presentation March 2018 | 20
4.2 | Development Track Record

  1000

   900

   800
                                                                                        730
                                                    705
   700
                                        626                                                                          625
   600                                                                        576
                                                                    520

   500                         481                                                                462
                     442

   400     360

   300

   200

   100

     0
         2007/08   2008/09   2009/10   2010/11     2011/12         2012/13   2013/14   2014/15   2015/16           2016/17

                                                 Units developed

                                                                                                   Investor Presentation March 2018 | 21
4.3 | A mixed development portfolio

                                                                                     Shared ownership sales                  2014/15     2015/16        2016/17
                                                                                     Units                                        50          115            193
                                                                                     Average 1st tranche % sold                46.8%        46.3%         46.3%
                                                                                     Average proceeds                           £72k         £74k           £68k
                                                                                     Total sales value                        £3.6m        £8.5m         £13.2m
                                                                                     Profit per unit                          £13.3k       £10.1k          £6.2k

                                                                                     Voluntary disposals                     2014/15     2015/16        2016/17
                                                                                     Units                                        99           75             68
                                                                                     Profit per unit                          £21.1k       £24.5k         £30.4k

                                                                                                                  ted
    Great Stone Gardens, Manchester                The Firs, Salford                                   ent of ren                     Outright sale
                                                                                        Developm                using a                             s schemes
                                                                                          s in g  is a ppraised                        are required
                                                                                                                                                     to meet
                                                                                      hou                               nd
    Mixed tenure with Affordable rent: 10 units    Private rented scheme: 15 units             a r N P V a pproach, a                 a target sale
                                                                                       40 ye                      hemes                             s margin
    Shared Ownership: 26 units                     Shared ownership: 15 units
                                                                                          a re d   O w nership sc                          hurdle rate.
                                                                                       Sh                            rst
    Outright sales: 32 units                                                                             ider the fi
                                                   Development cost: £1.8m                 also cons                   .
                                                                                                          ale results
    Development cost: £3.8m                                                                   tranche s
                                                   (PRS element)
    (outright sale element)                        Gross yield: 7.59%
    Proceeds: £5.5m
    Margin: 32%
                                                                                                                         Private rented scheme
                                                                                                                         appraisals required to
Mixed tenure development helps to diversify risk                                                                          meet gross and net
                                                                                                                              yield targets.

                                                                                                                                Investor Presentation March 2018 | 22
5 | Financial analysis and transaction overview

                                        Investor Presentation March 2018 | 23
5.1 | Financials
                                                                                                                                                                         rnover
                                                                                                                                                               Record tu           h
                                                                                                                                                                       nt cut; wit
                                                                                                                                                            despite re              t
 For the year ended 31 March                           *2015           2016       2017                                  Maintained                                      in outrigh
                                                         £m             £m         £m
                                                                                                                         £60m                                increases      first
                                                                                                                                                                 sales and
 Income Statement                                                                                                     investment                                  tranche s
                                                                                                                                                                            ales
 Total turnover                                           89.5        103.9      109.4                                in new homes
 Operating surplus#                                       30.6          33.8      34.0
                                                                                              Increases
 Surplus for the year after tax                           11.3          12.4      12.7    operating       in                              £14m
                                                                                                    surplus &
                                                                                           surplus af                                  investment
                                                                                                      ter tax                              in existing
 Statement of Financial Position
                                                                                                                                           properties
 Housing properties at cost                           1,092.6       1,139.4     1,174.7
 Depreciation                                         (124.4)       (134.6)     (147.3)
 Investment properties                                    12.7          13.9      15.5
 Other fixed assets                                        6.5           6.4      10.0      Turnover                    £ ‘000s        %
 Fixed assets                                           987.4       1,025.1     1,052.9     Social housing lettings   84,328         77%
 Investments                                              10.2           9.9        9.2
                                                                                            First tranche shared
                                                                                            ownership sales
                                                                                                                       13,168        12%
 Net current assets                                       25.0          28.4      45.8      Developments for sale      6,053         6%
 Total assets less current liabilities                1,022.6       1,063.4     1,107.9
                                                                                            Supporting people          2,307         2%
 Creditors due after one year                           517.7         550.2      591.7      Properties owned but
                                                                                            managed by other           1,348         1%
 Social housing grant                                   475.1         473.7      467.6      organisations
 Reserves                                                 29.8          39.5      48.6      Other                       2,214        2%
                                                      1,022.6       1,063.4     1,107.9

* 2015 restated after FRS102
# operating surplus includes the surpluses from the disposals of fixed assets
                                                                                                                                                     Investor Presentation March 2018 | 24
5.2 | Financial analysis and ratios

 For the year ended 31 March                                                                                                 2013*    2014*      2015*         2016         2017

 Statistics and key ratios

 Surplus % (Surplus for the year as % of turnover)                                                                            9.3%    10.7%      12.9%        11.9%        11.6%

 Interest cover (operating surplus, add back surplus/deficit on sale of property in normal course of business, add back       178%     186%       185%        212%         236%
 depreciation, impairment and gift aid) / (net interest payable)

 Interest cover (As above, but with major repair capitalisation limited to 40% of total major repair expenditure)             156%     170%       169%        202%         214%

 Gearing (Total borrowings less cash at bank and in hand)/ (Housing properties at cost less properties under construction)   41.5%    40.5%      44.0%        44.0%        43.1%

 Social Housing Letting interest cover (Surplus on social housing lettings / net interest paid (in cash flow statement)        1.6x     1.1x       1.3x         1.3x         1.2x

 Operating Margin before interest % (Operating surplus / turnover excluding grant amortisation)                                28.8     30.0       34.1         28.9         30.0

 Recurrent cash interest cover (Operating surplus plus depreciation and impairment / net interest in cash flow statement)      2.3x     1.7x       1.8x         2.1x         2.0x

 Debt to revenue (Loans less fees plus finance leases / turnover)                                                              4.8x     4.8x       5.0x         5.2x         4.8x

 Assets under management                                                                                                     16,498   16,785    17,515       18,409       18,908

 Housing assets £m                                                                                                           £971.5 £1,003.2 £1,092.6 £1,139.4 £1,174.7

 Net capital expenditure % (Movement in Housing properties at costs / turnover excluding grant amortisation)                 39.9%    45.9%      45.8%        41.4%        24.3%

Source: GPHG statutory accounts and Moody’s                                                                                                        * Restated following FRS102

                                                                                                                                               Investor Presentation March 2018 | 25
5.3 | Moody’s and Fitch ratings

 Moody’s ratings                                                                   Fitch ratings

    AA3

     A1
                                                                                     AA-

     A2

     A3

                                                                                      A+
    Baa1

    Baa2

            Oct    May       Nov     Jan     Dec       July    Feb    Sep   Dec              Oct    Apr      May     Oct   Nov         July         July
           2012    2013      2013   2015     2015     2016    2017   2017   2017            2012   2013      2014   2014   2015       2016         2017

             Credit rating      Baseline Credit Assessment

Despite sovereign and sector downgrades, Great Places has improved its Moody’s baseline credit assessment.

                                                                                                                             Investor Presentation March 2018 | 26
5.4 | Sector scorecard

                                                                                                                                                                                                                                                  Great Places
 Business health                                                                                                      Development
                                                                                                                                                                                                                                                  Family Group
            Operating margin (%)                   Operating margin SHL (%)         EBITDA MRI (%)                               Development (No.)          Development (% of stock)                           Gearing (%)
                                                                                                                                                                                                                                                  Sector median
                                                                        31.64                    227.96
                              30.31                                                                                                                                                                                          41.60

                                                                                                                                                                                    1.10

                                                                                                                                                   40.00
           28.60              28.17                 35.20               31.56   141.94           185.00                        625.00              223.00    3.80                   1.80               52.40                 42.16

 Operating efficiencies

                          Headline Social Housing cost per unit (£)                                       Rent collected (%)                                                Overheads as % of adjusted turnover

                                                             3,315.00                                                           99.71                                                                             12.30

                      3,066.00                                3,200.00                         100.70                           99.71                                7.50                                      13.30

 Outcome delivery                                                                                                     Asset management

           Customer satisfaction (%)                Investment: communities       Investment: housing                                   ROCE (%)                    Repairs ratio                        Occupancy rate (%)

                              86.60                                                                                                                                                 0.68
                                                                                                                                                    4.00                                                                     99.50

                                                                                                  0.69

                                                                         0.01
           86.10              84.90                  0.06                0.02    1.06             0.77                          3.10                3.80     0.42                   0.72               99.57                 99.25

Source: Extracted directly from the Sector scorecard pilot outcomes

Our Family Group:
(21 plus Great Places: Accent, Accord, Chevin, Cobalt, EMH, Equity, ISOS, Johnnie Johnson, Irwell Valley, Leeds Federated, Longhurst,
Mosscare, Muir, Nottingham Community, Orbit, Regenda, Riverside, South Yorkshire, Stonewater, Symphony, Yorkshire)

                                                                                                                                                                                                                      Investor Presentation March 2018 | 27
5.5 | Regulator of Social Housing (RSH) Unit costs

Entity                                   Social Housing Cost       Management          Service Charge   Maintenance    Major Repairs           Other Social
                                                   CPU (£k)           CPU (£k)               CPU (£k)      CPU (£k)        CPU (£k)           Housing Costs
                                                                                                                                                  CPU (£k)

Great Places HA                                        3.07                  1.02               0.35           0.56             0.85                       0.28
Sector Level Data
Upper Quartile                                         4.33                  1.15               0.60           1.11             0.96                       0.51
Median                                                 3.30                  0.94               0.37           0.93             0.68                       0.24
Lower Quartile                                         2.93                  0.74               0.24           0.78             0.49                       0.10
Quartile                                                2nd                      3rd             2nd           Best             3rd                         3rd

North West Median                                      3.34                  0.95               0.35           0.94             0.78                       0.32
Position compared to NW Median                        Better               Worse               Same           Better          Worse                     Worse

                                  ey
                       ks are a k
  Major wor                       ces
                                                 Supported H
                                                                ousing is a
    r io r it y  f o r Great Pla              key cost driv
                                                            er; having a h
  p                                  e
          e  d   t o  im proving th              proportion w              igh
   lin  k                                                        ithin our
            a li t y o f o ur homes             stock should
       qu                                                       make us
                                                 comparative
                                                                ly more
                                                      expensive

                                                                                                                               Investor Presentation March 2018 | 28
5.6 | Treasury strategy

 As at 31st March                                      2017                                                    Debt repayment profile (excluding bond)
 Maturity                                              £’000   The Treasury Strategy (July 2017) specifies a
                                                               minimum of 75% fixed rate debt AND a               £50m
 Within one year                                       4,817
                                                               minimum £20m cash held.
 Between one and two years                             9,929                                                      £40m
 Between two and five years                           30,357   Fixed and hedged borrowings
                                                                                                                  £30m
 After five years                                 499,617      is split:
 TOTAL                                            544,720      Bond                                               £20m
 Fixed including cancellable                      470,402      43%
                                                    (86%)                                                         £10m
                                                               Embedded
 Variable                                             74,318
                                                       (14%)
                                                               30%                                                   £0
                                                                                                                       2018               2026              2036                          2047
                                                               Free standing derivative
 Own name Bond issue
 Post 2007 facilities
                                                  201,676
                                                  310,117
                                                               27%
 Other legacy debt                                 32,927                                                      Hedging maturity profile

                                                                                                                  £30m
As at 31 December 2017
                                                                                                                  £25m
 £632m        Total facilities
                                                                                                                  £20m
 £527m        Total facilities drawn
                                                                                                                  £15m
 £105m        Total available
              (includes £55m of revolving facility)
                                                                                                                  £10m
The tap issue including the retained element is
                                                                                                                   £5m
expected to cover the funding requirement of
the group for at least 4 years.                                                                                      £0
                                                                                                                       2019               2026               2036                          2046

                                                                                                                                                         Investor Presentation March 2018 | 29
5.7 | Valuation and security for the bond
Current and proposed bond stock
        1 - 50
                                                         Lancaster
        51 – 250

        251 - 1,200
                                                                     Ribble Valley                           Bradford
                                                Wyre
                                                                                       Pendle
                                  Blackpool             Preston
                                              Fylde                              Burnley
                                                                         Hyndburn
                                                      South Ribble
                                                                              Rossendale
                                                                      Blackburn
                                                           Chorley
                                                                                        Rochdale
                                                                      Bolton Bury
                                                                                                Oldham

                                                                Wigan        Salford
                                                                                        Tameside
Current and proposed                                   St Helens                 Manchester
bond stock                                                             Trafford
                                                                                                                        Sheffield
                                                                                                                                        Rotherham
                                                                                         Stockport       High Peak
                                                              Warrington
General Needs

3,856                                                                                                                        Chesterfield
Shared Ownership
                                                                                 Cheshire East
                                                      Cheshire West
340
Supported, older
people and agency
managed

725
                                                                                          Stoke

                                                                                                                                            Investor Presentation March 2018 | 30
5.8 | Valuation and security

                               Total           No. of Market value   No. of    Existing      Loan       Nil   Current      Unit
                           number of            units   subject to    units use social supportable   value       loan      loan        Current                    Current
                               units         (MV-ST)      tenancy (EUV-SH)     housing        (£m)   units      (£m)      value
                                                                                                                                    nominal amount            security valuation
                                                             (£m)           value (£m)                                  (£000s)      £200m                      £241.5m
Proposed bond security and valuation table
Current bond                    4,140          3,084     £220.71      911      £52.06       £241.5    145     £201.6     £58.3
                                                                                                                                  Currently redesignating stock with a loan
Redesignating                     781           690         £46.90      88      £3.93        £44.5       3               £57.0    supportable value of almost: £45m
Total                           4,921          3,774     £267.62      999      £55.99       £286.0    148     £201.6     £58.1
                                                                                                                                  In the unlikely event that property
                                                                                                                                  securing all the bond is not in place at
Total security and valuation table as at 31 December 2017
                                                                                                                                  closing, cash will be placed in the sinking
Refinanced debt                 6,585          2,697     £199.58     3,726    £180.17       £341.6    162     £242.3     £53.2    fund. It is anticipated that any cash will be
(2007 £315m facility)                                                                                                             replaced by property within no more than
Bond                                                                                                                              6 months.
                                4,140          3,084     £220.71      911      £52.06       £241.5    145     £201.6     £60.5
Sub-total                      10,725          5,781     £420.29     4,637    £232.23       £583.2    307     £443.9     £56.0
(with security trustee)

Other debt                      3,147          1,022        £54.18   2,080    £106.29       £132.4      45    £80.00     £42.7
Unencumbered properties         1,869          1,553        £35.30     83       £3.81        £90.1    224                £54.8
TOTAL                          15,741          8,365     £510.31     6,800    £342.33       £805.4    576     £524.0     £53.9

                                                                                                                                              Investor Presentation March 2018 | 31
5.9 | Transaction structure
Issuer: Great Places Housing Group Limited

Borrower: Great Places Housing Association

Rating: A3 Moody’s, A+ Fitch
                                                               Bondholders
Tap Amount: £75m with £70m retained

Regulatory judgement: G1 / V1

Maturity date: 22 October 2042

Security: Social housing property
                                               Great Places    Great Places
                                                 Housing      Housing Group
Covenants: Asset cover ratios: 1.05x EUV-SH,   Association       Limited
                                                                                           Bond Trustee
1.15x MV-ST                                     (Borrower)       (Issuer)

Use of proceeds: General corporate purposes,
including funding the development programme

Bookrunner: Santander GCB

                                                 Security
                                                 Trustee                      Security

                                                                              Cash flows
                                       n
             h  is t a p  t ransactio
           T                             e
                 b r in g t h e total siz
          wil l
                 t h  e e x isting bond
            of                    5m
                   up to £34
                                retained)
             (inc. £70m

                                                                                            Investor Presentation March 2018 | 32
5.10 | Find out more
Great Places values its ongoing relationships with all of its stakeholders.
Find out more at the dedicated investor section of our website.

                                                                              Performance
                                                                              Update
                                                                              For the period covering
                                                                              1 October 2017 to 31 December 2017
                                                                              Great homes. Great communities. Great
                                                                                                                      people.

                                                                                                                                                                                        Perform
                                                                                                                                                                                        Update ance
                                                                                                                                                                                      For the
                                                                                                                                                                                      1 July 20period covering
                                                                                                                                                                                               17 to 30
                                                                                                                                                                                                        Septemb
                                                                                                                                                                                     Great hom
                                                                                                                                                                                              es. Great
                                                                                                                                                                                                                er 20
                                                                                                                                                                                                          communiti                         17
                                                                                                                                                                                                                      es. Great
                                                                                                                                                                                                                                  people.

                                                                                                                                           ance
                                                                                                                                Perfortm
                                                                                                                                Updaerieod coveringe 2017
                                                                                                                                         p             n
                                                                                                                                 For the 2017 to 30 Ju
                                                                                                                                 1 April                                at people
                                                                                                                                                                                 .
                                                                                                                                                                 es. Gre
                                                                                                                                                        muniti
                                                                                                                                                  at com
                                                                                                                                          mes. Gre
                                                                                                                                  Great ho

                                                                                                                                                                                                                           Investor Presentation March 2018 | 33
6 | Conclusion
• We own or manage over 19,000 homes across the North West and Yorkshire
• Good mix of properties by type and geography
• High demand across the entire property portfolio
• Impact of welfare reform has been well managed and mitigated
• Clear and uncomplicated organisational structure
• Strengthened governance structure, and experienced board
• Experienced executive team
• Strong development track record and good portfolio mix
• Increasingly financially robust
• Modest exposure to property sales
• Record turnover achieved in 2017
• Our most recent stability test has confirmed G1/V1 status
• Benchmarked strongly against our peers

Our refreshed three year Corporate Plan will be in place for April 2018 and will set out our short and medium term plans
and long term ambitions.

                                                                                                                  Investor Presentation March 2018 | 34
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