Triple Point Social Housing REIT : Annual Results Presentation 2023 View document

2023 Annual Results Presentation

March 2024

AGENDA

Highlights

Max Shenkman

Financial Overview

Isobel Gunn-Brown

Operational Overview

Max Shenkman

Sustainability Overview

Gregory Banner

Outlook

Max Shenkman

Triple Point Social Housing REIT plc - Board1

Chris Phillips		Tracey Fletcher-Ray		Ian Reeves CBE		Cecily Davis		Peter Coward
Chairman		Senior Independent Director		Non-Executive Director		Non-Executive Director		Non-Executive Director

Triple Point Investment Management LLP - Presenting Today

Max Shenkman		Isobel Gunn-Brown		Gregory Banner
Partner & Head of Investment		Partner & Chief Financial Officer		Investment Director

Notes: (1) Tracey Fletcher-Ray was appointed as Senior Independent Director, succeeding Ian Reeves CBE, with effect from 7 March 2024.	2

OVERVIEW

Strong rental growth	Excess demand for Specialised	Central Government support
	Supported Housing	for residents

		Partnership approach,
Valuation resilience	100% long-term and	majority of lessees performing
	fixed-priced debt	in line with expectations

3

DELIVERING ON STRATEGIC INITIATIVES

April 2023		July 2023		September 2023
Initiated £5m share		Eco-Retrofit pilot		Sale of £7.9m portfolio of
		properties principally in
buyback programme1		programme commenced
		line with book value

January 2023		May 2023		August 2023		January 2024
2023 annual rent increases		Sustainability and Impact		Fitch reaffirms investment		New lease clause included
voluntarily capped at 7%		Committee established		grade rating2		in first leases

Notes: (1) In aggregate, between 19 April and 12 June 2023, the Company repurchased 9,322,512 ordinary shares at an average purchase price of 52.61 pence per share; (2) Fitch Ratings reaffirmed the Group's existing Investment	4
Grade, long-term Issuer Default Rating of "A-" with a stable outlook and a senior secured rating of "A" for the Group's existing loan notes.

RESILIENT PERFORMANCE

113.76p		£678.4m		5.46p		37.0%
EPRA NTA		Portfolio Value		FY23 Dividend Target		LTV
per Share		(Dec-22: £669.1m)		(FY22: 5.46p)		(Dec-22: 37.4%)
(Dec-22: 109.06p)
24.3 years		90.2%		0.85x		5.59%
WAULT		Rent Collection		Dividend Cover		EPRA Net
(Dec-22: 25.3 years)		(Dec-22: 91.8%)		(Dec-22: 0.89x)		Initial Yield
						(Dec-22: 5.46%)

5

INFLATION CORRELATED INCOME AND ADVANTAGEOUS CAPITAL STRUCTURE

100%		6.9%		64.6%		2.74% and 9.6 years
Leases linked to inflation or		Weighted average rent increase in		2024 annual rent uplifts now		All debt is fixed-price with a
Government policy1		2023; 6.7% in 2022		linked to the September 2023 CPI		long weighted average debt
				figure of 6.7%		maturity

Strong rental growth

Earliest debt maturity in mid-2028

10%

8%

6%

6.7%6.9%

£200m

£150m

£100m

4%
2.5%
2%		1.4%	1.1%	1.0%
0%
FY18	FY19	FY20	FY21	FY22	FY 23

£50m																		£117.5m
										£77.5m
£0m							£41.5m							£27.0m
2022	2023	2024	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036

Notes: (1) 100% of contracted rental income was either linked to CPI (92.5%) or RPI (7.5%), with only 4.9% containing a cap and collar structure. For 2023 all RP leases temporarily had rent increases capped at 7.0%. The new clause	6
provides for an increase in the annual rent payable to the Group amounting to the lower of CPI (or RPI where applicable), or the maximum rent increase allowed under prevailing policy to the extent that it applies to SSH rents.

HISTORICAL STRONG TRACK RECORD OF RENT COLLECTION

90.2% of rent due collected during the period, rent collection improved during H2 2023

25 out of 27 lessees with no material rent arrears

Creditor's agreements now in place with Parasol; My Space agreement expected in Q2

Historical Rent Collection

100%
80%
60%
100%	100%	100%	100%	100%	91.8%
					90.2%
40%
20%
0%
2017	2018	2019	2020	2021	2022	2023

7

VALUATION RESILIENCE UNDERPINNED BY GROWING DEMAND AND RENTAL GROWTH

£800m

£600m

Value
Portfolio	£400m
	£200m

£0m

		Portfolio Value (£m)		Blended IFRS Valuation NIY	5.71%
5.25%	5.49%	5.69%

£642.0m

£669.1m

£675.1m

£678.4m

31-Dec-21

31-Dec-22

30-Jun-23

31-Dec-23

6.00%

5.00%	NIY
4.00%	Valuation
3.00%	IFRS
2.00%
Blended
1.00%
0.00%

FY 2022

Strong rental growth followed by market driven outward yield

adjustment of

10-25bps. NIYs adjusted to reflect rent arrears for two RPs

H1 2023

Strong rental growth offset by further market driven outward yield movement of 15-25bps

H2 2023

Additional market (c.5bps) and rent arrears specific (c.40bps) outward yield movement offset by rental growth and certainty around 2024 rent increases1

Notes: (1) as at 6 March 2024, over 64.6% of the Group's 2024 annual rent increases are linked to the September 2023 Consumer Price Index figure of 6.7%.	8

DELIVERING NEW BEST IN CLASS PROJECTS WITH LEADING REGISTERED PROVIDERS

£2.8 million forward funding development, due to exchange in May 2024

First scheme following SOHO's partnership with Golden Lane Housing, a leading G1 V2 rated RP

SOHO's first project to target a 10% biodiversity net gain

9

FINANCIAL OVERVIEW