National H Home melessness Property F Fund AG AGM th July 2 18 th 18 2017
Agenda 1) 1) Introductions & & Admini nistrative Matters - In Introductions & & Di Disclosure of of Co Conflicts ts - AG AGM Pr Procedures & Rules 2) 2) Revie iew of of NH NHPF Performance to to Da Date - In Investment O Objective - Fu Fund Stru ructure re - Cu Current t Investo tors - Pe Performance to Date - No Nominations Ta Target - Po Portfolio Valuation 3) O ) Out utlook f for NH NHPF - So Social Impact - Re Related Fut utur ure Ini nitiatives 4) 4) AO AOB
AGM Procedures & Rules Go Governin ing document: Limited Partnership Agreement (Schedule 2) Attendees: The Partnership (ie Limited Partners and the General Partner) At Meet Meetings: s: first AGM within 18 months, no more than 15 months between subsequent se: (i) provision of information only (not direction or advice); and (ii) voting on Pu Purpose: resolutions Quor Quorum um: two Partners, present or by proxy, one of whom the General Partner irman: General Partner representative, unless resolutions to be passed, in which case Ch Chair Limited Partner representative; minutes signed by Chairperson are record of decisions Vo Voting: by show of hands unless poll requested, each Partner voting its number of Capital Contributions ons: Ordinary Resolution 50%, Special Resolution 75% Pa Passi ssing of of resol olut ution No resolutions are being put forward for approval at this meeting
Investment Objective Ta Target fu fund nd size of f £6 £60m m - £1 £100m Invest in Properties Cu Curre rrently £3 £32.5 mi million (first t close e Dec Dec 15, , sec econd close e Feb eb 2017) Bu Building a UK UK wi wide po portfolio (e (excluding Lo London) In Initial ar areas as of of Bri Bristol, Ox Oxfo ford & Mi Milton Ke Keynes Cu Curre rrently co commit itted to to 18 187 pr prope perties of of an an in init itia ial ta target of of 19 195 2 elemen elements to to th the to tota tal re return rn ov over th the 7 ye year fu fund nd Targeting IRR of 6% 1. Ca Cash yie yield of of c 3% on once fu fund nd is is in invested (o (over 2 ye years) 2. Sh Share in in ca capit ital ap appreciat ation at at th the en end of of th the fu fund nd de delivering to tota tal IR IRR of of ar around nd 6% Cu Curre rrent ne net in init itia ial yie yield of of 3.2% ve versus in init itia ial ta target of of 3.6% fo for fi first th three ar areas as, and and fl floor of of 3.0% (e (except pt MK MK wh where fl floor lo lower ered ed to to 2.5% by by sp speci cial re resolution) Ex Expanding in into ot other ar areas as wh which is is ex expec ected ed to to en enhance ne net in init itia ial yie yield cl close ser to to fu fund nd ta target of of 4% Impact To To br break do down ba barriers in in ac access to to Pr Private Re Rented Se Sect ctor fo for th those on on th the jo journey ou out of of ho homelessne ness 1. 1. Im Improving housi sing opportunities s 2. 2. Pr Progressi ssing towards s work 3. 3. Im Improving resi silience ce against st homelessn ssness ss Fo Four urth social impact report for RLPF F (London) showing continue ued progress towards this goal. The first th t social imp mpact t report t for NHPF will be available July/Au August t 2017. * * Cu Current nt data ta as of of 22 June ne 2017
Fund Structure Other Local No Nomination of Investors Authorities tenants te ts & payment t of plac of acement fee In Investment Charity Property Fund Partner Use of Us prope pro pert rty (5 year l (5 y lease) • Pr Predictable pi pipe peline of su suitabl ble pro prope pert rties s for r th the Ch Charity ty Partn tner (St t Mu Mungo go’s in existi ting g areas) • Standard lease in place with Charity Partner taking on risk of bad debts / voids etc. St • In Investors ob obtain ain a a yie ield an and cap apit ital al ap appreciat iation ion on on their ir in investment • Lo Local Au Authori rities s who invest st also so gain ri rights s to nominate tenants s into the se serv rvice • Id Identical s structure t to s successful a award w winning R RLP LPF (Lo (London f fund) w ) which i is n now d distributing pro profits
Current Investors Second Close (Feb 2017) First Close (Dec 2015) £1m £5m £200k £5m £0.5m £5m £0.5m £250k £15m Project S Snowball L LLP £125k High N Net W Worths + £30m £2.5m = £32.5m portfolio
Deployment Performance to Date KPI 18 months trading (Dec 2015 - June 2017) Total number of properties approved by the 296 Investment Committee (IC) (109 units lost before or after instructing solicitors - 37% attrition rate in line with expectations. Main reasons: Before instruction - being outbid; During conveyancing - vendor withdrawal) Total fund committed £33.4m (103% of current fund size) Calculated over-commitment of funds to allow for anticipated attrition rate Number of properties 187 (143 acquired / 44 conveyancing) Nominations to Local Authorities (LA’s) 133 (versus target of 143) Committed Acquisitions £ Current Property Type (all areas)
Nominations Target • No Nominations Agr greement betwe ween St Local,Authority,Nominations Mungo Mu go’s and each Local Auth thority ty 160 • Ta Target t to d deliver 1 195 p 5 properties 140 (B (Bristol 7 75 / O 5 / Oxford 50 50 / M / MK 7 70) 120 100 • 18 month period from May 2016 18 16 to 80 Oc October 2017 17 60 40 • Slightly behind in all areas in first 3 Sl 20 mo months s (May to July 2016) due to 0 co conveyanci cing proce cess (now rectified). A re A sl slight dip p acro ross ss the Christm Ch tmas period due to to con ontrac actor or an and sol olic icit itor or av avail ailab abil ilit ity. Target Actual • Cu Currentl tly at t 133 nominati tions versus ta targe get t 143. • Currentl Cu tly on tr track to to deliver 93% of no nomina nations ns to LAs prior to raising ng furth fu ther investm tment t (Bristo tol 71/ Oxfo ford 46/ MK 65) 46 * * Cu Current nt data ta as of of 22 June ne 2017
Annual Fund Valuation • JLL continue to provide the annual Fund valuation NHPF Valuation 2016/17 • Given scale and maturity of the Purchase Price Book Value Vacant Posession Market Value Fund, valuation methodology £25.0 has moved to a more industry £21.5 standard “Market Value” £19.7 approach taking into account £20.0 £18.7 £18.7 leases in place at the valuation date. This represents a 4.4% discount to the equivalent £15.0 “Vacant Possession” valuation at the same date £10.0 • Vacant possession values are £1m higher than purchase price £5.0 or 5.1%. With market value equating to purchase price after taking into account the £0.0 discount outlined above 2016/17 • Refurbishment costs are £1.95m or 9% book value with transaction costs representing £850k or 4%
Social Impact What we measure ? 1. Improving housing opportunities 2. Progressing towards work 3. Improving resilience against homelessness When do we report on this ? Annual report • • First report for NHPF due July/August 2017 which will cover the financial year 2016/17 RLPF1 published the third social impact • report last summer, and fourth due July/ August 2017
Social Impact Tenants housed Up until the end of the financial year 2017 Up 17, the NHP HPF ha has provided ho housing ng for 102 02 ho househo holds, of wh whom two wo have since moved on. Of the remaining hundred, forty-si six are re in Bri rist stol, twenty-fo four in Mi Milto ton Keynes and th thirty ty in Oxfo ford. To d To date (e (end o of J Jun une 2 2017), ), t this n num umber h has i increased t to 1 133 h hous uses a and 3 313 t tenants.
Social Impact Routes to NHPF properties 77% of tenants were previously in temporary accommodation. This figure is lower in Oxford (63%), compared to 83% in the other two areas. Bed & Other Breakfast (7) Family / Hotel (7) (1) Private Rent (8) 100 Temporary Accommodation (77) Da Data t taken f from f first N NHPF S Social Im Impact R Report
Key Achievements 1) Of Offer ering stable e and suitable e accommodation to one e hundred ed househ eholds, most of of whom om are singl gle mot others with youn oung g children mov oving g from om un unsui uitable co conditions, typica cally in temp mporary ac accommodat ation 2) 2) He Help lping th the new te tenants ts to to settl ttle in well and d susta tain th their te tenancies. 100% of te tenants ts have eith ther conti tinued d to to sta tay in th the property ty or moved d on positi tively in th the first t year of th the Fu Fund nd 3) 3) In Inte tensive su support given en to ten enants s to hel elp them em set settle e in, , with 1700 actions s re recorde rded d on tenant monitori ring systems by the Real Lettings team last year. r.
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