HALF-YEAR RESULTS PRESENTATION Six months ended 31 December 2018 BREATHING LIFE INTO LAND
Business Model ▪ Identify and acquire high quality brownfield land in South and South-East of England ▪ Add value by securing planning permission – 100% track record ▪ Generate value from land holdings through these activities Inland Homes plc – Half year results December 2018 2
Land Sales ▪ Focus on brownfield and strategic sites ▪ Purchases of brownfield sites unconditionally and without planning consent ▪ Strategic sites secured by way of discount to market value options ▪ Focus on South and South-East in areas of high housing demand ▪ Balanced risk/reward returns profile: ▪ Disposal of land to other developers ▪ Deals with Housing Associations for Partnership Housing ▪ Disposal of land to investors and provision of planning and development services for management fees Inland Homes plc – Half year results December 2018 3
Private Housebuilding ▪ Objective is to construct a balanced mix of Houses and Apartments ▪ Target market: first-time buyers and first movers ▪ Help to Buy used widely ▪ Direct delivery provides greater control over pressurised construction supply chain ▪ Excellent in-house construction team ▪ Selected developments carried out through joint ventures ▪ Vertically integrated model enables monetisation of greater proportion of development value Centre Square (formerly Lily’s Walk), High Wycombe Inland Homes plc – Half year results December 2018 4
Partnership Housing ▪ Housing Associations and PRS operators attracted to Inland’s ability to provide land and construction of homes ▪ Partnering with industry-leading players ▪ Crystallise value and cashflow on land disposal ▪ Construction working capital provided by partner ▪ De-risks market exposure Inland Homes plc – Half year results December 2018 Abbey Wharf, Alperton 5
Medium-term objective Medium-term strategy to re-balance revenue contribution across operating activities by growing private housebuilding and Partnership Housing businesses 4% Revenue by segment 5% 15% 20% June Medium- 40% term 2018 48% 28% 40% Land sales Partnership Housing land sales and construction Private Housebuilding Other Inland Homes plc – Half year results December 2018 6 6
Financials Chapel Riverside, Southampton
Progress in first half and positive start to the year Financial overview EPRA NAV 1 Interim dividend Gross margin Revenue PBT 2018: 103.57p per share 2018: 28.6% 2018: £51.0m 2018: £5.5m +6.1% 2018: 0.85p +30.8% (H1 2017: 18.6%) (H1 2017: £61.2m) (H1 2017: £5.4m) (H1 2017: 97.63p) (H1 2017: 0.65p) Strategic & Operational overview High quality site Persuing significant Successfully Private housing Private homes acquisitions; both Partnership units sold under construction extended debt outright and under Housing contracts; facilities at 2018: 81 2018: 1,057 +88.8% option Order book up 326% (H1 2017: 96) (H1 2017: 560) improved terms Plots +6.1% to 7,291 to £140m 2 1 On an undiluted basis 2 Including Dagenham transaction (see slide 27) Inland Homes plc – Half year results December 2018 8
Segmental results Revenue by segment Profit Net Revenue Gross Profit before tax Assets 9% £m £m £m £m 22% Land 4.8 0.5 (0.7) 33.3 40% 29% Private Housebuilding 20.2 2.5 1.7 89.1 Partnership Housing 15.0 1.7 1.4 5.6 Land sales Housebuilding Contract income Mngt fees/Other Other 1 11.0 9.9 2.8 19.4 Gross profit by segment 3% Total 51.0 14.6 5.5 147.4 17% 28.6% 12% 68% 1 Includes management fees and income/assets from investment property Inland Homes plc – Half year results December 2018 9 9
Net debt December December June 2018 2017 2018 Debt maturity – facilities 1 (£m) £m £m £m 2025 Net debt 96.6 69.8 79.7 2024 Cash + headroom 54.8 61.8 72.5 2023 Gearing - IFRS 65.5% 51.8% 56.0% 2022 - EPRA 45.4% 35.6% 38.6% 2021 2020 2019 0 10 20 30 40 50 60 ▪ Agreed new four-year £65m RCF with HSBC 1 Following refinancing of RCF facility (including £20m accordion) on improved terms Inland Homes plc – Half year results December 2018 10
Generating value for shareholders Recurring profit before tax EPRA NAV per share p Dividend growth p £m 25.0 120 2.5 103.57 102.28 2.2 20.3 19.3 96.22 92.34 18.1 20.0 100 2.0 15.7 1.7 80 15.0 1.3 1.5 60 43.92 1.0 10.0 7.5 7.3 0.85 1.0 6.1 5.5 40 5.4 0.65 4.6 0.6 0.5 5.0 3.0 0.4 0.5 0.3 20 - 0.0 0 0.0 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 June June June June Dec 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2015 2016 2017 2018 2018 FY HY Total Interim Inland Homes plc – Half year results December 2018 See slides 29 and 30 for income statement and balance sheet 11
Land Cheshunt Lakeside, Hertfordshire
Land Plots without planning permission Plots with planning permission ▪ Land bank increased by 6% to 7,291 plots 8,000 7,372 7,291 6,522 6,428 7,000 2,048 ▪ Planning received for 60 unit site at 2,328 6,000 1,939 2,042 Meppershall, Beds 5,000 4,000 3,000 5,243 5,044 4,583 ▪ Planning permission on Cheshunt Lakeside 4,386 2,000 and Wilton Park expected shortly 1,000 0 Total Group share Total Group share 2017 2018 ▪ Acquisition of site at Dagenham (see slide 27 Status of Strategic for detail) planning With sites planning 34% 28% ▪ Acquired options over two strategic sites during the period with potential for 170 homes Pre-application discussions 5% Planning applications To be progressed submitted 26% Inland Homes plc – Half year results December 2018 13 7%
Planning update: Wilton Park Relief road under construction ▪ Revised proposal submitted to Council in January 2019 including 79 affordable Current planning units – 30% of 264 net increase in unit application numbers ▪ Planning decision expected in the current financial year ▪ GDV estimated at £350m with potential for further uplift ▪ New relief road currently being constructed to our boundary ▪ Formal adoption of new Local Plan for “East of Beaconsfield (1,700 homes – including 40% affordable) expected 2020 Additional landholding (see slide 26 for plan) Inland Homes plc – Half year results December 2018 14
Planning update: Cheshunt Lakeside Resolution to grant planning permission expected to be received during current financial year for the 28 acre site comprising 1,853 apartment-led mixed-use development We have a 50% interest in 20 acres of the site containing 1,343 apartments Regeneration includes commercial, retail, leisure and education space as well as a new local plaza Estimated gross development value of £650m Inland Homes plc – Half year results December 2018 15 Cheshunt Lakeside, Hertfordshire
Strategic land 522 acres across 35 sites with potential for 3,079 homes Strategic landholdings held in capital efficient manner 86% of sites held under discount to market value options 30 sites of 469 acres and 2,763 plots Eight sites in planning process Inland Homes plc – Half year results December 2018 16 Holmer Green, Buckinghamshire
Other activities Managed sites Aston Clinton, Buckinghamshire ▪ £9.2m net management fees for planning and development services Master Brewer, Hillingdon ▪ Facilitated purchase on behalf of investor ▪ Major residentially led mixed-use scheme New initiatives 1 ▪ Rosewood Housing (registered provider) ▪ - first affordable unit now let ▪ Hugg Homes (modular housing) ▪ 22 units in situ and fully let ▪ 32 units pre-let and being manufactured ▪ Annual rent by year end: £500k 1 See slide 28 for more detail on Rosewood Housing and Hugg Homes Aston Clinton, Buckinghamshire Inland Homes plc – Half year results December 2018 17
Housebuilding St. John’s, Chelmsford
Housebuilding in progress H1 H1 H2 2019/ 2017/18 2018/19 2018/19 2020 Completions Homes for sale - Group 96 79 35 371 - 50% JVs - 2 45 150 96 81 80 521 Partnership equivalent units 32 63 163 313 Total homes delivered 128 144 243 834 +12.5% Private ASP (£'000) 322 238 n/a n/a Help to Buy contribution 58% 64% n/a n/a Inland Homes plc – Half year results December 2018 19
Housebuilding in progress - continued December December Change Total land holdings split by type 2018 2017 % Units under construction Homes for sale - Group 864 517 - 50% JVs 193 43 Flats Houses 54% 88.8 1,057 560 46% Partnership equivalent units 496 220 Total homes under construction 1,553 780 99.1 Inland Homes plc – Half year results December 2018 20
Partnership Housing Witley Gardens, Southall
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