PRELIMINARY RESULTS PRESENTATION Year ended 30 June 2016 DELIVERING - PowerPoint PPT Presentation

PRELIMINARY RESULTS PRESENTATION Year ended 30 June 2016 DELIVERING VALUE THROUGH HOUSEBUILDING AND BROWNFIELD DEVELOPMENT OCTOBER 2016

01 Our business 01 • AIM listed with market cap of £125m • Land regeneration and residential development business in Who we are Southern England • 100% track record in obtaining planning consents St Johns, Chelmsford • Identify brownfield land opportunities with strategic angles • Acquire brownfield sites unconditionally; secure options over strategic greenfield or greenbelt land Strategy • Add value by navigating through complex planning system • Sell consented plots; develop lower cost homes; control substantial land bank; generate rental income Applewood, Boreham • Increase net land bank and underlying NAV • Expand housebuilding operations Business objectives • Increase rental income • Joint ventures with major landowners and financial partners Carter’s Quay, Poole

02 Group highlights Operational Financial  Robust set of results  EPRA net asset value of 86.63p per share and adjusted EPRA net asset value of 91.54p per share  Strengthened management team  Profit before tax of £32.9m (2015: £34.0m) including revaluation  Land bank increased to 6,681 plots (2015: 5,176 plots) of which surplus of £18.0m (2015: £14.5m) 1,163 have planning consent; Strategic land with over 1,600 plots  Housebuilding revenue of £51.5m (2015 : £66.1m) across 17 sites and over 330 acres  Revenue from plot sales of £43.3m (2015 : 39.6m)  147 private units (2015: 248) sold at average price of £337,000  Gross margin on housebuilding increased to 21.9% (2015 : 20.9%) (2015: £264,000) after increased costs due to failed contractor  Forward sales of £22.5m  165% increase in rental income to £2.1m (2015: £0.8m)  Sold 425 residential plots (2015: 440)  Revaluation gain of £18.0m, principally on investment properties  321 units under construction at Wilton Park, Beaconsfield  Our marketplace unaffected to date by Brexit decision  30% increase in net asset value to £116m  First major joint venture with a Local Authority (Southampton City  29% increase in proposed final dividend of 0.9p (2015 : 0.7p) Council)  Strong balance sheet with cash balances of £16.7m (2015:  Acquisition of substantial regeneration project in Cheshunt, £21.4m) Hertfordshire in a joint venture  Improved borrowing facilities

03 Financial highlights: strong results delivered across all operating metrics 2016 2015 Change Comments £101.9m £114.2m -10.8% Revenue Lower number of private units sold Gross margin 29.0% 30.1% Profit before tax (including valuation gain) £32.9m £34.0m -3.4% Profit before tax (excluding revaluation gain) £14.9m £19.6m -23.8% Increased profit in previous year due to change in accounting policy Earnings per share 14.23p 14.67p -3.0% Investment properties £51.7m £34.0m +52.1% Revaluation of residential properties at Wilton Park Investment & loans to JVs £11.3m £4.7m +136% Increase in number of JV projects Inventories £146.8m £121.0m +21.3% Other financial liabilities £22.4m £23.5m -3.4% £15m deferred consideration outstanding on Wilton Park Net debt £54.6m £34.9m +56.4% Increased investment in sites and work in progress Net gearing 47.0% 39.2% +19.9% NAV per share 57.5p 43.9p +31.0% Impact of revaluation of investment properties and profits EPRA NAV per share 86.6p N/A N/A Reflection of unrealised value within projects Adjusted EPRA NAV per share 91.5p N/A N/A Reflection of unrealised value within projects

04 Revenue & gross profit analysis Revenue by segment - Revenue by segment - 2016 2015 2% Land sales  147 private units sold (2015: 248 units) 2% 6% 1% 3% Land sales 35% Housebuilding 42%  32% (2015: 31%) of private sales undertaken with Help to Housebuilding Contract Buy Contract Rental and  Average selling price of £337,000 (2015: £264,000) other 51% Rental and 58% other Hotel  80% of housebuilding revenue from sale of houses (2015: 42%)  Overall gross margin 29.0% (2015: 30.1%) Gross profit by segment - Gross profit by segment - 2016 2015  Gross margin of 21.9% (2015: 20.9%) on housebuilding  Forward sales of £22.5m -2% 6% 3% Land sales Land sales 8%  425 building plots sold for £43.3m (2015: £39.6m) Housebuilding Housebuilding 49% 55%  Significant increase in rental income with current Contract Contract 37% annualised amount of £2.6m 40% Rental and Rental and other other

Summarised balance sheet 05 Assets by segment - 2016 Assets by segment - 2016 2015 Comments 2015 (£m) (£m) Land 9% Land 0% Housebuilding 13% Investment 51.7 34.0 Revaluation uplift on residential Housebuilding Contracting Properties properties at Wilton Park 21% 43% Contracting 18% Investments 49% Joint Ventures 11.3 4.7 Increased investment in JV projects Investments Investment Associate 1.0 - 25% interest in Troy Homes Ltd Investment 7% properties 4% properties Other 0% Other 0% Inventories 146.8 121.0 20% 16% Hotel Hotel Cash & cash 16.7 21.4 equivalents Borrowings <1 (40.1) (43.9) year Investment property - Investment property - Borrowings > 1 (31.1) (12.4) ZDPs and Barclays RCF 2016 2015 year Deferred (22.4) (23.5) £15m due on Wilton Park, 10% consideration Beaconsfield 24% 2% Development Equity land Development attributable to 116.0 88.8 land Residential shareholders Residential Commercial 57.5p 43.9p NAV 76% 88% Adjusted EPRA 91.5p N/A NAV

06 100.0 120.0 140.0 160.0 180.0 200.0 20.0 40.0 60.0 80.0 0.0 Main drivers of EPRA NAV Growth 89.1 Jun-15 17.1 Land sales 11.3 Housebuilding 1.7 Rental income Revaluation of 18.0 investment properties (0.8) Contracting EPRA net asset value Provision for (1.1) doubtful debts (6.3) Overheads (7.1) Interest (3.5) Tax (2.8) Dividends 1.2 Other movements Unrealised value in 67.9 inventories 184.7 Jun-16

Land bank

07 Land Portfolio  Strategic focus on South East commuter and high growth locations  Strong and visible pipeline of opportunities, both within land bank and housing developments  Delivery of first time buyer and mid-tier price range homes into high-demand areas in the South East and Outer London Boroughs

Visible and growing pipeline of future opportunities 08 Land Bank Plots owned / managed (number) 8,000 7500 7,000 6,681 7000 6,681 6500 6,000 1,805 6000 5,176 1,163 5,000 5500 5,176 49 1,303 5000 3,734 4,000 114 1,200 4500 2,589 1,329 3,734 3,000 4000 1,811 2,306 1,942 3500 66 2,000 942 347 1,344 1,318 3000 605 1,124 380 5,518 307 2,306 1,000 2500 1,942 1,318 1,215 1,057 1,086 1,048 2000 3,976 1,057 - 1500 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 1,215 2,416 1000 Plots controlled or terms agreed without consent (including strategic options) 1249 500 Plots controlled or terms agreed with consent or resolution to grant planning consent 727 Managed or held within joint ventures without consent (contracted or terms agreed) 0 Managed or held within joint ventures with consent (contracted or terms agreed) FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Owned or contracted without planning consent Owned or contracted with planning consent or resolution to grant planning consent Plots Without Planning Permission Plots With Planning Permission Total total “Significant brownfield and strategic land bank with visible pipeline of opportunities”

9 100% record of obtaining planning permission Visible pipeline of assets moving through the planning cycle Planning status of residential plots Strategic To be progressed Pre-application discussions Planning applications submitted Target plots for consent by 30 June Ownership status No. of plots No. of sites No. of plots No. of sites No. of plots No. of sites No. of plots No. of sites 2017 Managed or held in joint ventures (contracted or terms agreed) - - 968 2 616 3 1,005 3 1,171 Owned or contracted 35 2 46 1 982 8 96 3 714 Plots controlled or terms agreed 1,314 16 - - 111 1 345 3 89 Grand Total 1,349 18 1,014 3 1,709 12 1,446 9 1,974 Planning status of plots in land bank Planning status of commercial space To be progressed Pre-application discussions Planning applications submitted Planning applications Ownership status No. of sites Sq ft No. of sites Sq ft No. of sites Sq ft submitted, Strategic, 1446 Managed or held in joint ventures 1349 (contracted or terms agreed) 1 80,000 2 62,764 3 131,675 Owned or contracted - - 6 141,527 - - Plots controlled or terms agreed - - - - 1 53,820 To be Grand Total 1 80,000 8 204,291 4 185,495 progressed, 1014 Pre- application discussions, 1,709

Wilton Park, Beaconsfield, Buckinghamshire 10  114 acres  Estimated GDV in excess of £250m  Development Brief adopted in 2015 for 350 homes  Access road from Pyebush roundabout to be opened soon  Short term rental income in excess of £1.4m p.a.  Planning application expected to be submitted by 31 December 2016  Site included in Local Authority’s Preferred Option list for Green Belt release