The 36,000-home housing association invested almost £250m in new and existing homes over the year
Thirteen Group increased its investment in housing development by 75% in the 2023/24 financial year.
The North-east landlord, in its financial statement for the year to 31 March, said it spent a total of £133.8m on delivering new homes, compared to £76.2m the previous year.
It built 542 homes for rent and shared ownership during the year, slightly below its target of 550, but up from the 454 homes delivered in 2022/23.
Thirteen plans to increase its housing delivery again this year, with a target to build 650 new homes. Over the next five years, Thirteen plans to deliver 1,861 new homes.
The association also increased its investment in existing homes, from £88.3m to £109.2m, which it says is its “highest ever recorded spend” on its properties.
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Thirteen’s surplus for the year grew from £24.4m to £29m, representing an 18.8% increase.
The group’s turnover increased by £9.3m compared to the previous year, to £207.3m.
Income from social housing lettings rose from £168.7m in the 2022/2023 financial year to £183m in 2023/24, driven by an average 7% rent increase.
Thirteen also saw an increase in the number of properties developed for sale and sold, with the sale of 162 homes resulting in a turnover of £10.2m, up from £7.8m.
Thirteen’s earnings before interest, taxes, depreciation, and amortisation, major repairs included (EBITDA MRI) dropped from £39.2m to £26.7m, which it said reflects the high demand for our services during the year and a planned increase in investment in its housing stock.
In his statement, the chief executive of Thirteen, Matt Forrest, said “we’ve experienced an exceptionally high demand for our repair services, which saw us complete 15,876 more repairs than last year”.
The housing association’s EBITDA MRI margin decreased from 19.9% to 13%.
Thirteen’s board has agreed to lower the threshold for its EBITDA-MRI interest cover from 165% to 125% to provide the housing association with greater flexibility, while ensuring financial viability is maintained.
Chief finance officer at Thirteen, Jane Castor, said: “We are very pleased with the progress we have made with our funding strategy during 2023/24, having renegotiated our interest cover covenants to EBITDA only, raised £100m of additional long-term finance, and increased revolving credit facilities.
“This, together with our financial strength, gives us a strong foundation to raise additional funding and accelerate our investment in improving and building homes even further.
“We’ve delivered this while retaining our customer focus and recording a significant increase in customer satisfaction ratings.
“All in all, it’s a very encouraging set of results delivered against a backdrop of huge financial and operational challenges in the sector.”
Housing association financial statements 2023/24
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