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Genesis’ property portfolio
Portfolio comprises 33,000 properties. 27,000 are owned and the remainder managed on behalf of other landlords
– work in 88 local authorities– 50 per cent of Genesis activity is located
within five local authorities– 14 additional local authorities cover 30% of
portfolio
Tenure split– 3 in 5 homes are social and affordable rent– 1 in 5 are leasehold and shared ownership– supported housing (1 in 6) and
intermediate/market rent (1 in 12)
Genesis stock
Tomorrow’s housing association
The sector as a whole will need to:
• Be astute in managing their assets
• Be able to develop without grant funding
• Offer a range of products and services to a diverse customer base
• Come up with ideas rather than wait for the regulator
• Demonstrate clear ROI to investors and other stakeholders
• In short, act as commercial businesses.
An innovative example
The English Social Housing Property Index• Developed by IPD* in conjunction with Genesis, Helena Partnerships, LMH,
Spectrum, Gallions, Circle and Orbit
Aims• Demonstrate the economic performance of housing association property assets
through the creation of a return-based performance benchmark/ index• Demonstrate the economic sacrifice or social dividend or policy impact of
accepting below-market level returns
Benefits for participants• Detailed portfolio analysis• Input to risk analysis/ management• Aids selection of properties for investment/ disposal
*IPD = Investment Property Databook
Key elements of IPD performance measurement standard
• Benchmarking social housing portfolios
• Looks at value and allows prospective investors and housing associations to make informed investment decisions
• Performance measurement and reporting on a continuous and regular basis
• Primary focus on activities related to investing in developing and managing property
• Adoption of generally accepted definitions underlying these activities
• Measurement on activity based costing basis
• Measurement of cash flows on accrual basis
• Comprehensive measurement – all property related activities
• Measurement on basis of external value – gross OMV
• External valuation of cash flows and values
€ 00%
STRATEGIC:
Overhead as % of capital valuePolicy impact:
TACTICAL:Total returnCapital growthIncome returnActivity
OPERATIONAL:Operating cost as % of g.i.**Operating costs per propertyVoids as % of OMV*Gross income growth %
Capital supply
00000000Investment management
Transformation function
LettingFacility
managementProperty
management
Consumers/ households/ end users
Benchmark – headline figures
Measure Totals Per property
Number of participants 5
Number of schemes (year end) 1821
Number of units (year end)* 67,311
Total sqm *year end) 4,357,122
Gross income £347.3m £4,668**
Rent passing (year end)* £287.8m £4,276*
Market rent (year end)* £527.4m £7,835*
Operating costs £230.9M £3,241**
Market value (year end) £5.7bn £74,196*
Vacant possession value*** £9.6bn £118,613*
*standing investment and part transaction schemes** standing investments*** where vacant value is known
Headline figures
Structure as % of total capital value by tenure – all property
Direct property performanceTotal return– standing investments
Switzerland
English Social Housing Property BenchmarkTotal return (March 2012) 14.9
Residential total return across Europe (December 2011)
Direct property performanceTotal return per sector/ segment – standing investments
House
Bungalow
Flat w
ith lif
t
Flat w
ithout li
ft
Sheltere
d housin
g
Oth
er housin
g with
share
d
Unattrib
uted h
ousing
Land
Houses
Flats
Oth
er housin
g
Oth
er
All pro
perty0.02.04.06.08.0
10.012.014.016.018.020.0
14.614.9
12.9
14.6
11.2
14.6 14.3
18.014.9
Pe
rce
nta
ge
*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules
Direct property performanceIncome return – standing investments
English Social Housing Property BenchmarkIncome return (March 2012) 2.1
Residential; income return across Europe (December 2011)
Switzerland
Per
cen
tag
e
Direct property performanceIncome return per sector/ segment – standing investments
House
Bungalow
Flat w
ith lif
t
Flat w
ithout li
ft
Sheltere
d housin
g
Oth
er housin
g with
share
d
Unattrib
uted h
ousing
Land
Houses
Flats
Oth
er housin
g
Oth
er
All pro
perty0.0
0.5
1.0
1.5
2.0
2.5
3.02.6
2.8
2.0
1.20.8
2.7
1.4
2.0 2.1
Pe
rce
nta
ge
*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.
Direct property performanceIncome return per tenure – standing investments
Shared o
wnership
Regulate
d rent
Social r
ent
Afford
able re
nt
Inte
rmedia
te re
nt
Mark
et rent
Unattrib
uted
0.00.51.01.52.02.53.03.54.04.55.0
4.3
1.7
3.8
2.0
Pe
rce
nta
ge
*’Regulated, affordable and market rent’ is left out of the analysis due to compliance with IPD’s confidentiality rules
Direct property performanceTotal operating costs per sector – held properties
*For some markets certain measures are available but not included in Market Data publications and therefore not shown in this analysis
Houses Flats Other housing Total
As % of gross income 61.2 80.0 76.7 70.1
£ per m2 36.96 63.30 103.59 51.65
£ per property 3,959 3,614 3,086 3,241
Direct property performanceBreakdown of operating costs – held properties
Maintenance costs (responsive and planned)
Letting costs
Property management
Fixed costs
Other costs
Total
As % of gross income
44.5 0.1 23.4 0.9 1.9 70.8
£ per m2 2.43 0.04 17.10 0.68 1.40 51.65
£ per property
2035 2 1073 43 88 3,241
Direct property performanceOperating costs as % of gross income by tenure – held properties
*’Regulated, affordable and market rent’ is left out of the analysis due to compliance with IPD’s confidentiality rules.
Per
cen
tag
e
Direct property performanceRanking: operating costs as % of gross income – held properties
*December 2011
Per
cen
tag
e
Direct property performanceRent passing/ Market rent £ per m2 - standing investments
House
Bungalow
Flat w
ith lif
t
Flat w
ithout li
ft
Sheltere
d housin
g
Oth
er housin
g
Unattrib
uted h
ousing
All pro
perty0
20406080
100120140
5467 65
73 7967
99111
123 127110 115
Rent passing per sqm market rent per sqm
*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.
Direct property performanceIncome potential: rent passing as % of market rent by tenure – standing investments
Shared o
wner...
Regulate
d
Social
Afford
able
Inte
rmedia
te
Mark
et rent
Unattrib
uted
0
10
20
30
40
50
60
70
80
90
100
58.48 57.68
92.73
51.23
Rent passing as % market rent - benchmark*Regulated, affordable and market rent is left out of the analysis due to compliance with IPD’s confidentiality issues
Policy impact in 2012Policy impact – only residential – standing investments
English Social Housing Property BenchmarkCapital growth (March 2012) 12.6
Residential: capital growth across Europe (December 2011)
Direct property performanceCapital growth – standing investments
Switzerland
House
Bungalow
Flat w
ith lif
t
Flat w
ithout li
ft
Sheltere
d housin
g
Shared fa
cilitie
s
Unattrib
uted h
ousing
Land
All segm
ents0.02.04.06.08.0
10.012.014.0
Direct property performanceCapital growth – standing investments
*’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.