IntroductionToAnnington-2019-web - Page 6



Introduction to Annington 2019
Tidworth, Wiltshire
SUMMARY
ANNINGTON: A SUBSTANTIAL REAL ESTATE ASSET WITH STABLE, LONG-TERM,
GOVERNMENT-BACKED CASH FLOWS & GROWTH POTENTIAL
1. Attractive and sizeable real estate asset
2. Stable, long-term, Government-backed cash flows
• Largest private residential landlord in the UK
• Irreplaceable asset for provision of housing for Armed
Forces families
• c.39,000 homes on 200-year lease to UK Government
• Critical asset provider to the Ministry of Defence (‘MoD’)
• Attractive homes in places with strong demand
• Plays to the UK’s structural housing supply–demand
imbalance
• Established PRS portfolio and platform
• Contractually prescribed rent reviews, which regularly
capture market movements
• Substantial reversionary potential through the site review
process
• Strong track record of generating value from properties
released by the MoD
• High income to EBITDA conversion of 90%
3. Robust financials1
4. Clear growth potential
• Property Fair Value of £7.7bn (2018: £7.1bn)
• Efficient and scalable operating platform with
established processes and low operational risk
• Significant free cash flow
• Long term and low cost investment grade
capital structure
| Annington Limited Introduction to Annington 2019
• Gross LTV of 44%2
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1. Source: Annington Report and Accounts 2019
2. Excluding utilities provision
• Opportunities to expand further into PRS through:
- Proprietary pipeline from MoD releases
- Purchases in the open market
• Experienced management team with proven track record
of performance
| Annington Limited Introduction to Annington 2019
• Net rental income of £192.8m
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