Genesis’ property portfolio

1. 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)

2. Genesis stock

3. 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.

4. 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

5. 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

6. STRATEGIC: Overhead as % of capital value Policy impact: Capital supply TACTICAL: Total return Capital growth Income return Activity Investment management 0 Transformation function 0000000 OPERATIONAL: Operating cost as % of g.i.** Operating costs per property Voids as % of OMV* Gross income growth % Property management Letting Facility management 0% € 0 Consumers/ households/ end users

7. Benchmark – headline figures *standing investment and part transaction schemes ** standing investments *** where vacant value is known

8. Headline figuresStructure as % of total capital value by tenure – all property

9. Direct property performanceTotal return– standing investments English Social Housing Property Benchmark Total return (March 2012) 14.9 Residential total return across Europe (December 2011) Switzerland

10. Direct property performanceTotal return per sector/ segment – standing investments *’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules

11. Direct property performanceIncome return – standing investments English Social Housing Property Benchmark Income return (March 2012) 2.1 Residential; income return across Europe (December 2011) Percentage Switzerland

12. Direct property performanceIncome return per sector/ segment – standing investments *’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.

13. Direct property performanceIncome return per tenure – standing investments *’Regulated, affordable and market rent’ is left out of the analysis due to compliance with IPD’s confidentiality rules

14. 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

15. Direct property performanceBreakdown of operating costs – held properties

16. Direct property performanceOperating costs as % of gross income by tenure – held properties Percentage *’Regulated, affordable and market rent’ is left out of the analysis due to compliance with IPD’s confidentiality rules.

17. Direct property performanceRanking: operating costs as % of gross income – held properties Percentage *December 2011

18. Direct property performanceRent passing/ Market rent £ per m2 - standing investments *’Other housing with shared facilities’ is left out of the analysis due to compliance with IPD’s confidentiality rules.

19. Direct property performanceIncome potential: rent passing as % of market rent by tenure – standing investments *Regulated, affordable and market rent is left out of the analysis due to compliance with IPD’s confidentiality issues

20. Policy impact in 2012Policy impact – only residential – standing investments

21. Direct property performanceCapital growth – standing investments English Social Housing Property Benchmark Capital growth (March 2012) 12.6 Residential: capital growth across Europe (December 2011) Switzerland

22. 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.