Greensleeves Homes Trust

Tenure of Property Portfolio

Lease Payments

Making use of leases

▪ Greensleeves makes use of a mixed ownership model with 20 of its homes owned leasehold, and 8 on leases.

6,000

8

7

7

6

5,000

6

5

▪ The decision to lease or buy is driven by a range of factors ▪ Availability of the asset, often only available with a lease ▪ Cost of lease v. debt ▪ Impact on cashflow

4,000

5

3,000

4

3

3

3

2,000

2

3,640

2

2,823

5,086

1

1

2,165

1

1,623

1,000

1

Leases can ▪

693

273

448

459

0

0

incorporate attractive features feature like initial rent-free period as the home is filling up ▪ Selling an existing asset can provide the opportunity to acquire a new freehold home and/or invest in existing assets ▪ Over the last few years leases have risen as a % of turnover in common with the rest of the sector ▪ We have a policy of 2 new freehold homes for 1 leased ▪ All Greensleeves leases have a number of common characteristics ▪ The RPI inflation element will be collared ▪ Covenants will be minimized ▪ Preferably with trusted developer

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Leasehold rents

Number of homes - leasehold

Lease Payments as a % of Turnover

7.0%

6.4%

5.6%

6.0%

5.3%

4.5%

5.0%

4.0%

3.0%

3.0%

1.7%

1.6%

2.0%

1.3%

1.1%

1.0%

0.0%

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

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