focus on care-based community housing. By doing so,

this would form a bridge between equity investors and

the social housing sector and bring together aspects of

healthcare with social housing.

The Company has since developed the largest portfolio

of care-based community housing in the UK that provides

long-term homes for more than 4,500 individuals across

half the local authorities in England and Wales.

As a result of this success, the Company extended its

mandate to be able to enter into transactions directly

The Company’s investment objective is to provide

shareholders with an attractive level of income, together

with the potential for capital growth from investing in a

portfolio of Social Homes, which benefits from inflation

adjusted long-term leases or occupancy agreements with

Approved Providers and to deliver, on a fully invested

and geared basis, a targeted dividend yield of 5% per

annum

typically indirectly via Special Purpose Vehicles,

portfolios of Social Homes and entering into long-term

inflation adjusted leases or occupancy agreements

for terms primarily ranging from 10 years to 40 years

with Approved Providers, where all management

and maintenance obligations will be serviced by the

Approved Providers. The Company will not undertake

any development activity or assume any development or

construction risk. However, the Company may engage in

renovating or customising existing homes, as necessary.

of any part of the Portfolio. In the unlikely event that a

part of the Portfolio is disposed of, the Directors intend

to reinvest proceeds from such disposals in assets in

accordance with the Company’s investment policy.

Investment Restrictions

The Company invests and manages the Portfolio with the

objective of delivering a high-quality, diversified Portfolio

through the following investment restrictions:

assets.

Gearing Limit

The Directors seek to use gearing to enhance equity

returns. The level of borrowing is set on a prudent basis

for the asset class and seeks to achieve a low cost of

funds, whilst maintaining the flexibility in the underlying

security requirements and the structure of both the

Portfolio and the Company.

1 The dividend yield is based on the original IPO price of 100 pence per Ordinary share. The target dividends are targets only and do not represent a profit forecast.

There can be no assurance that the targets can or will be met and should not be taken as an indication of the Company’s expected or actual future results.