REG - Beyond Housing Ltd - ESG Impact and Allocation Report

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03/01/2025 11:30

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RNS Number : 0953S  Beyond Housing Limited  03 January 2025

 

Appendix 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sustainable Bond Allocation and Impact Report 2023/24

Contents

1          Executive (#_TOC_250003) summary (#_TOC_250003)
 
(#_TOC_250003) 3 (#_TOC_250003)

2          Bond (#_TOC_250002) overview (#_TOC_250002)
 
(#_TOC_250002) 4 (#_TOC_250002)

3          Allocation (#_TOC_250001) summary (#_TOC_250001)
 
(#_TOC_250001) 4 (#_TOC_250001)

4          Impact (#_TOC_250000)
 
(#_TOC_250000) 4 (#_TOC_250000)

5          Audit/Limited
sssurance
6

6          Important
information
6

1.      Executive summary

1.1.   Beyond Housing is a registered Community Benefits Society (CBS), we
have a group turnover of c£93.7m in 2023/24. We own and manage c15,354 homes
across nine local authorities in the north-east, housing over c30,000
customers. Our staffing numbers are c726 people (FTE), and we offer housing
for rent and sale, including shared ownership.

1.2.   Our five-year strategy is based on four strategic objectives:

·         Provide quality services to our customers - increase
customer satisfaction, grow our independent living business, and have 65% of
our customers using digital services.

·         Build new homes and keep our existing home in good
condition - build circa 2,750 new homes, increase Tenant Satisfaction measures
(TSM) customer satisfaction with the quality of our homes and repairs
satisfaction and improve the Energy Performance Certificate (EPC) ratings for
all our homes to EPC C or better by 2030.

·         Invest in our communities/neighborhoods to create a great
place to live and work - offer the best information and advice to customers,
be a leading training provider and create neighborhoods our customers are
proud of.

·         A great place to work for our people - achieve Investors in
People (IIP) accreditation, deliver an agile working environment, increase
colleague satisfaction, and improve the health and wellbeing of our staff.

1.3.   In 2023/24 on the balance sheet, we invested £45.5m on housing
property for letting,

£26.5m on completed shared ownership homes and £6.1m on new shared ownership
properties under construction. We completed 291 homes as we work towards our
overall program to meet nearly 2,750 homes by 2030/31. Of the 291 homes
delivered in year, 144 were for affordable rent, 44 shared ownership, 43 rent
to buy, 9 social and 51 outright sales.

1.4.   We made significant progress with the regeneration of the Church Lane
(North) estate in Eston during 2023/24 which is now close to completion. We
have invested circa £16.7m in delivering the project to build c33 new homes,
refurbish existing homes, create street and garden layouts, achieve EPC C
targets and create green spaces.

1.5.   We are committed to reducing our operating carbon footprint through
our direct and indirect emissions. This includes gas, electricity, vehicles
and travel. In our annual accounts we publish our annual emissions
performance. Emissions have increased in the year and reflect increased office
and fleet consumption.

2.      Bond overview

2.1.   In May 2021 Beyond Housing issued its first sustainable
Environmental, Social & Governance (ESG) bond. The issuance, of £250m
notional value, had a day-1 size of

£165m, with net proceeds of £161.3m. In November 2022 £40m of the retained
bond was issued through a forward purchase agreement with proceeds in November
2023. The retained portion, totalling £45m, makes up the balance of the
notional value.

 

2.2.   Beyond Housing bond details at 31 March 2024.

 

 Notional Value  £250million
 Currency        Pound Sterling
 Maturity        2051 (30 years)
 Format          Secured, senior, bearer
 Repayment       Bullet
 Moody's Rating  A2 stable (October 2023)
 Coupon          2.125%
 Listing         International Securities Market (ICMA) of the London Stock Exchange

 

3.      Allocation summary

3.1.   The proceeds from the issuances have been allocated in line with our
Sustainable Bond Framework, including refinancing of existing assets as well
as a proportion allocated to new developments. Assets refinanced by the
proceeds of the Sustainable Bond were identified according to the criteria in
our framework. Refinancing accounted for 80% of net-proceeds of the initial
issuance.

 

4.      Impact
 

4.1.   Environmental - We align many of our activities to the ESG framework.
Most of our properties (c85%) are Energy Performance Certification (EPC) 'C'
or above, and we plan for all properties to achieve a 'C' rating by 2030. We
install only energy 'A' rated boilers, and our annual capital works program
includes insulation, double glazing, kitchens and bathrooms, s ensuring c100%
of our homes meet decency standards every year.

We have waste disposal contracts with suppliers to recycle many of our
materials.

 

Social - We follow stringent gas and electric testing safety protocols to
ensure all properties are compliant and safe . Customers are surveyed e with
regards to satisfaction and have the opportunity to be involved and scrutinize
our services. We ask all our larger contracts to outline their social values
and sustainability standards in tendering.

Governance - Our regulatory grading from the Regulator Social Housing is G1/V1
(March 2024).

 

4.2     Some of our housing projects

 

4.2.1    De-carbonisation - In 2023 Beyond Housing secured a further
£1.12m of grant from the Social Housing Decarbonisation Fund, through the
Tees Valley Combined Authority consortium.  The grant, supported by
additional match funding of £2.5m from Beyond Housing will improve the EPC
ratings and carbon emissions of 97 homes across our communities in the Redcar
and Scarborough areas.   

 

The proposed projects include energy efficiency measures installed at 65
dispersed properties throughout the region, including insulation, upgraded
heating controls, solar PV and Air Source Heat Pumps to some properties. The
second project is the installation of a shared ground loop system, solar PV,
external wall insulation and energy efficient windows to a block of 32 flats
in Hunmanby.   

 

4.2.2    Loftus development - Beyond Housing delivered the final £15m
phase of our £43m development in Loftus.  The development includes 73 homes
for affordable rent and 12 homes for rent to buy.

 

4.2.3    Homelessness - Beyond Housing formed a partnership with
Scarborough Borough Council, North Yorkshire County Council , to tackle
homelessness in Scarborough. Reducing Exclusion for Adults with Complex
Housing Needs (REACH) is a three-year project supporting homeless people into
housing and providing them with the tools they need to establish independent
living. The scheme has a total cost of £896,939, with funding of £345,000
secured from Homes England. The Scarborough-based project aims to identify the
most vulnerable people whose complex life circumstances and needs are
preventing them from finding a home on the same-day basis as everyone else,
often because they need extra support.

 

Two groups of apartments in Scarborough, were completed to support homeless
people in the area. Alongside housing, the project team provides support and
guidance about alcohol or substance misuse, mental health needs, and the
reduction of anti-social behaviour and criminal activity - all of which can be
barriers to sustaining a tenancy and can limit employment prospects.

 

4.2.4    Middlesborough -  Development of30 new two-bedroom apartments at
the Boho Village development in Middlehaven. The apartments were delivered in
partnership with Middlesbrough Development Company Ltd (MDC) and contractor,
Equans. The purchase was supported by Homes England with grant funding
totaling £1.1m. All the apartments are equipped with air source heat pumps,
efficiently reducing carbon emissions by extracting renewable heat from the
environment to generate hot water and heating in the home. This project
supports Middlesbrough Borough Council's commitment to restoring and
regenerating Middlehaven as the centre of thriving businesses and homes that
it once was. With the multi-million-pound investment, the council's ambitious
Middlehaven Development Framework has included bold ideas providing education,
housing, retail and leisure facilities.

 

5.     Audit/Limited Assurance (RSM)
 

5.1     This report has been submitted to RSM to be independently audited
by RSM (Beyond Housing's external auditors) and following this a report will
be provided to the board and M&G investments.

6.      Important Information

6.1     This report:

·     Has been prepared by Beyond Housing for information purposes only

·     It does not form a legal investment, tax, accounting of other
financial advice

·     Is intended to provide non-exhaustive, indicative and general
information it is not intended to be full comprehensive

·     Should be read in conjunction with the Annual Report and Accounts
2023/24.

6.2    This report has been prepared based on reviews and analysis of our
loan and data statistics. The report contains backward and forward-looking
information. Information has been provided by third parties and the borrower.
The information is relevant only on the respective dates.

6.3    Beyond Housing makes no representation, warranty, assurance of any
kind, expressed or implied, or takes no responsibility or liability as to the
fairness, accuracy, reliability, reasonableness, correctness or completeness
of any opinions or conclusions in the report.

6.4     The report offers no security or investment advice.

6.5    Beyond Housing is not liable for any loss, damage, liability or
expense incurred or suffered that is claimed to have resulted from the use of
this report by the recipients, including without limitation and direct,
indirect, special or consequential damages.

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