{"id":12108,"date":"2025-01-31T11:45:35","date_gmt":"2025-01-31T11:45:35","guid":{"rendered":"https:\/\/www.londonhouseexchange.com\/blog\/?p=12108"},"modified":"2025-07-30T05:52:56","modified_gmt":"2025-07-30T04:52:56","slug":"q4-2024-performance-announcement","status":"publish","type":"post","link":"https:\/\/www.londonhouseexchange.com\/blog\/q4-2024-performance-announcement\/","title":{"rendered":"Q4 2024 Portfolio Update"},"content":{"rendered":"\n

Below you will find our Q4 2024 performance announcement. This includes an LHX update, updated financial information on all properties, individual unit details, property disposals, dividends and other important information for investors. <\/p>\n\n\n\n

To ensure that all clients have the opportunity to consider this announcement, the Exchange will be suspended as usual, for 3 working days, re-opening at 10am on Wednesday 5 February 2025. <\/p>\n\n\n\n

Important upcoming dates <\/strong><\/p>\n\n\n\n

3 February<\/strong><\/td>Ongoing Unit Sale Votes and Blocklisting end<\/td><\/tr>
5 February<\/strong><\/td>LHX Exchange reopens for trading (10am)
Dividends for the month of January paid
Unit schedule updated to 31 January 2025<\/td><\/tr>
28 February<\/strong><\/td>February activity update published<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Today\u2019s announcements<\/strong><\/p>\n\n\n\n

1. LHX update<\/strong><\/p>\n\n\n\n

2. Portfolio performance<\/strong><\/p>\n\n\n\n

3. Dividend distributions<\/strong><\/p>\n\n\n\n

4. LHX Mortgage Bonds<\/strong><\/p>\n\n\n\n

5. Shareholder votes<\/strong><\/p>\n\n\n\n

6. Members Voluntary Liquidations (MVLs)<\/strong><\/p>\n\n\n\n

7. Property development loans<\/strong><\/p>\n\n\n\n

8. Properties with fire safety issues <\/strong><\/p>\n\n\n\n

9. Upcoming quarterly announcements <\/strong><\/p>\n\n\n\n

<\/div>\n\n\n\n

1. LHX update<\/strong><\/p>\n\n\n\n

Despite the seasonal impact of the festive period, the property team have sold 25 units in Q4 2024, amounting to \u00a34.0m in property value. <\/strong>As a consequence \u00a31.9 million of mortgage finance was repaid <\/strong>across our residential portfolio during the last quarter, reducing interest costs across the portfolio, with the total portfolio mortgage loan-to-value (LTV) currently at 42%. Moreover, some of the larger student properties are now under offer (e.g. Burns Street, Leicester), with the team working hard to progress these sales to conclusion. <\/p>\n\n\n\n

Following feedback we received from investors, we have provided additional options to download documents required for reporting<\/strong>, and now investors can download a timestamped Statement of Holdings, alongside Tax Statements for any defined period and account transaction history. This can be found in the \u201cInvestor Docs\u201d section of the Dashboard, navigated using the left hand menu. <\/p>\n\n\n\n

We successfully launched our new bridging finance investment offering paying 10% p.a. at the end of 2024. <\/strong>The fundraise was completed very shortly after launch and feedback from investors on the new product was positive. We are planning on launching further offerings in 2025 – all eligible investors will be notified of the scheduled launch time and date and can find out more about the new product here: Bridging Finance Investments<\/a><\/p>\n\n\n\n

As ever we value your feedback, so please do not hesitate to get in touch with us via support@londonhouseexchange.com if you have any comments or questions. <\/p>\n\n\n\n

<\/div>\n\n\n\n

2. Portfolio performance <\/strong><\/p>\n\n\n\n

Today (31 January 2025) we have published updated financial information for every property, including net income, mortgage details and the net cash position. You can find this information at the top of each property\u2019s respective investment page, in the \u2018Financials\u2019 section. <\/strong><\/p>\n\n\n\n

The \u2018Individual Unit Details\u2019 section<\/strong>, a tab within the \u2018Financials\u2019 section on each property\u2019s investment page that provides detailed information on a unit-by-unit basis, will be updated 5 February to reflect the latest status of every unit and contracted rent for let units. This tab is updated monthly and allows you to track sales progress for all properties voted for sale as part of their 5-year anniversary process. <\/strong><\/p>\n\n\n\n

All information is updated to 31 December 2024.<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

Residential portfolio unit status<\/em><\/strong><\/p>\n\n\n\n

The table below gives a summary of unit status by category across the residential portfolio at 31 December 2024. The changes exhibited over time continue to highlight the focus on selling residential units, as we seek to repay mortgages and fulfil shareholder mandates to sell properties following their 5-year anniversary votes.  <\/p>\n\n\n\n

Residential unit status<\/strong><\/td>31 March 2023 <\/strong><\/td>30 June 2023<\/strong><\/td>30 Sept 2023<\/strong><\/td>31 Dec 2023<\/strong><\/td>31 March 2024<\/strong><\/td>30 June 2024<\/strong><\/td>30 Sept 2024<\/strong><\/td>31 Dec 2024<\/strong><\/td><\/tr>
Let<\/td>336<\/td>308<\/td>267<\/td>252<\/td>224<\/td>204<\/td>182<\/td>167<\/td><\/tr>
To let (vacant)<\/td>10<\/td>4<\/td>7<\/td>6<\/td>5<\/td>4<\/td>6<\/td>2<\/td><\/tr>
For sale (vacant)<\/td>52<\/td>54<\/td>79<\/td>49<\/td>49<\/td>53<\/td>46<\/td>52<\/td><\/tr>
Under offer (vacant)<\/td>44<\/td>60<\/td>53<\/td>77<\/td>81<\/td>76<\/td>76<\/td>64<\/td><\/tr>
Total current units<\/strong><\/td>442<\/strong><\/td>426<\/strong><\/td>406<\/strong><\/td>384<\/strong><\/td>359<\/strong><\/td>337<\/strong><\/td>310<\/strong><\/td>285<\/strong><\/td><\/tr>
Sold<\/td>86<\/td>102<\/td>122<\/td>144<\/td>169<\/td>191<\/td>218<\/td>243<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Rental performance<\/em><\/strong><\/p>\n\n\n\n

We have been proactively carrying out rent reviews across the portfolio, leading to improved rental performance over each of the last 12 months leading to each of the last quarterly reviews. Across 182 tenanted residential units, contracted rent grew by 3.01% in the 12 months to the end of December 2024. While we are not undertaking as many rent reviews as usual as we vacate units to sell, we are continuing to serve Section 13 notices (notice of rent increases) where possible.<\/p>\n\n\n\n

Residential Unit sales<\/em><\/strong><\/p>\n\n\n\n

There were 25 residential unit sales completed in Q4 2024, amounting to \u00a34.0m in property value. Across these completed unit sales, sales prices were on average 9.6% below their vacant possession value (VPV) and 1.1% above their purchase price. Of the residential units sold in this quarter, 18% were London flats, which sold on average 6.1% below purchase price, with the remaining 82% being regional properties, which sold for 2.8% above purchase price. <\/p>\n\n\n\n

We expect an increased number of transactions in the first quarter of 2025 as buyers attempt to complete prior to the SDLT threshold reverting back to 2022 levels and the reduction in First-Time Buyer Relief, both in April 2025. <\/p>\n\n\n\n

Clients can see the performance of agreed and completed sales in the Individual Unit Details of each property and on our Selling Record.<\/a><\/p>\n\n\n\n

Mortgage debt<\/em><\/strong><\/p>\n\n\n\n

The average interest rate across our mortgaged portfolio stands at 8.1%, which is unaffordable for the majority of residential properties. The cost of servicing mortgage debt erodes rental income and is the primary reason for dividend suspension across the portfolio. <\/p>\n\n\n\n

We are continuing to pay down mortgage debt wherever possible, predominantly through unit sales, and \u00a31.9 million of mortgage finance was repaid across our residential portfolio during the last quarter. The total portfolio mortgage loan-to-value (LTV) is currently 42%.<\/p>\n\n\n\n

<\/div>\n\n\n\n

3. Dividend distributions<\/strong><\/p>\n\n\n\n

There have been no changes to dividends distributions this quarter. <\/p>\n\n\n\n

Dividends for the month of January 2025 will be paid 5 February.<\/p>\n\n\n\n

<\/div>\n\n\n\n

4. LHX Mortgage Bonds<\/strong><\/p>\n\n\n\n

Following recent unit sales in Mortgage Bond properties during Q4 2024, there has been the partial repayment of capital and interest in two bonds and full repayment of another:<\/p>\n\n\n\n