annual review 15l16 enabling transformation

Transcription

1 annual review 15l16 enabling transformation

2 2015I16 enabling transformation Dear Friends, This year has been a time of planning, of renewed thinking, and looking forward to where we see ourselves in the future. As a result, we have titled this Annual Review Enabling Transformation, for certainly the past 12 months have seen the beginning of changes within BHC and the sector as a whole. In late 2015, we welcomed a new Minister for Housing and Public Works, The Hon Michael (Mick) de Brenni MP and under his leadership the Department launched the Housing Strategy Discussion Paper Working together for better housing and sustainable communities. We welcomed the opportunity to respond to this paper and wholeheartedly support the Government s focus on creating a new affordable rental sector that is complementary and additional to social housing. This year saw BHC engage with its staff, tenants and Board in refreshing our Vision, Mission and Values. Our Vision of creating homes, empowering lives, enabling transformation sends a very clear message as to what we aim to achieve, and our values reinforce what we already know; our tenants are at the core of all that we do. You can read further about these on Page 3. We were delighted that Caggara House, our development specifically built for senior public housing tenants who would benefit from downsizing to units that were easier for them to manage, was recognised by the UDIA Awards and by the Australian Institute of Architects Queensland. Finally, it has been a year of change for me as I retire from my role as Independent Chair which I have held since I have been involved as a Board Member since BHC s inception where it was set up to provide 400 homes, to now where over 1,600 homes have been developed. I am proud of BHC s achievements in providing affordable, safe and attractive housing to Queenslanders, and I know that this will continue as I hand over the reins to the new Independent Chair, Eloise Atkinson. I commend this report to you. Dear All, It is a great honour to be entering the new financial year as Independent Chair of BHC. We are entering a new era; one where we look at our existing stock, some of which is 14 years old, and assess these assets with a critical eye, review their cost-effectiveness and test whether they are still fit for purpose within the community. You can read about this work as part of our Asset Management Strategy on Page 4 and 5. We are also pleased to soon be opening our newest addition to the BHC Portfolio, Barb s Place, also known as Spectrum, in Lutwyche (featured on back page), in honour of Professor John McAuliffe AM s late wife, Barbara. Our outgoing Chairman has brought so much to BHC, and during his time as Independent Chair he has seen 1,300 new homes created, assisting 3,973 households. BHC wishes to continue this legacy, and 2016/17 sees the launch of our 10 year strategic goal to produce more with less to sustain over 3,000 affordable homes for Queenslanders in need by 2026; a challenging target, but one which we believe we can achieve. I look forward to this upcoming year and hope you enjoy this report. Eloise Atkinson Independent Chair (incoming) July 2016 Professor John McAuliffe AM Independent Chair (outgoing) July BHC ANNUAL REVIEW 15/16

3 vision, mission and values This year BHC developed new Vision, Mission and Values. In doing so, consultations were held with staff, Board members and tenants to ensure a variety of opinions were heard and considered. Below are the agreed Vision, Mission and Values, and these will help to ensure BHC remains focused and shape their work into the future. BHC Vision Creating homes, empowering lives, enabling transformation. BHC Mission BHC s vision is delivered by building and maintaining quality affordable homes for people in need and engaging with and supporting people to sustain their tenancies. BHC Values Making a difference Working with integrity Supporting each other Our differences Being accountable and delivering quality Celebrating achievements enabling transformation a tenants story The cover of this year s annual review features BHC tenant Dave George. Dave served in the Royal Australian Navy but was medically discharged after 10 years. A series of life hurdles brought on post-traumatic stress disorder and severe bi-polar depression, and in 2006, Dave spent 18 traumatic months living on park benches in Sydney. It started me on a pretty steep spiral, Dave said. I felt like I lost control of my life. I was in a pretty dark spot with no one to fall back on. After community mental health services intervened, Dave eventually returned to family in Brisbane, but his struggle to find a suitable home was far from over. While living in a crowded housing community, Dave once again spiralled into depression and became a hermit. But Dave s luck finally changed when he found out about BHC and moved in to his new home at Bowen Court in It s a massive turn around for me, Dave said. It s a family here. I don t think I ve ever been this happy over the last 30 odd years as I am now. When BHC first showed me the apartment I thought, no this is a mistake, I ve got the wrong address. It s beautiful. For Dave, who now walks 10 kilometres a day around New Farm with his beloved staffie, Yanni, life is on the up. Before you can start to heal a person s mental health issues, you have to give them a purpose, Dave said. To be able to have a roof over your head is a good start. You wake up in the morning and you feel safe and you feel secure. You feel human and that s the critical thing

4 asset management BHC is committed to providing affordable housing that is safe, of a high quality, architecturally designed and environmentally sustainable. To enable this, BHC employs an Asset Management Strategy which continually transforms the portfolio whilst considering resident s needs and lifestyles. BHC s Asset Management Strategy aligns with the organisation s overall strategic goal to produce more with less to sustain over 3,000 affordable homes for Queenslanders in need by This Strategy provides the tools and necessary structure to analyse and review the portfolio so that it continues to deliver housing that meets the needs of current and future tenants. It also ensures that BHC continues to generate sufficient capital to enable refurbishments and deliver developments that meet BHC s vision of creating homes, empowering lives, enabling transformation. The Strategy ensures that assets are regularly assessed for their long term financial sustainability. Targets are set, monitored and reviewed through the capital works programs, to ensure peak performance of the portfolio and the best possible standard of living for tenants. 3 BHC ANNUAL REVIEW 15/16

5 One of BHC s primary purposes is to increase the supply of affordable housing. Developing new properties is one method to realise this goal and increase the overall performance of the portfolio. Alongside this, BHC also considers potential redevelopment or sale of current properties which have been identified as mismatched due to the changing needs of current and future tenants in the market. BHC conducts extensive research when a property is identified as a potential sale or redevelopment opportunity. Financial performance and opportunity costs are assessed by examining the 10 year financial forecast and the 20 year capital replacement plan for the building. Quadrant boasts a nine star average thermal rating Other factors assisting the assessment for redevelopment and sale are: Needs of existing and future tenants Social impact Available Gross Land Area Significant overlay and zoning allowances of site Existing age of building Existing units versus potential units Current building yield Mixed-tenure development, Aris, is located in a highly-sought after inner-city location Car parking requirements Area growth BHC s Asset Management Strategy Principles Work undertaken supports BHC s mission and strategic goals Applies public and commercial benchmarks and best practices within the building industry Provides sustainable tenancies and builds stronger/ inclusive communities Promotes full and appropriate utilization of assets Disposes or re-tasks under performing assets Enables efficient and cost effective management, providing the best value to BHC Delivers sufficiently flexible stock to respond to ongoing and emerging social housing needs, including provision for clients with special needs Protects assets through preventative and regular maintenance and upgrade programs Maintains portfolio to establish condition standards to ensure appropriate amenity and safety for tenants and to preserve the value of the assets Delivers sustainable and financially viable properties

6 2015I16 financial operations summary Summary Statement of Financial Performance 2015/16 $ 2014/15 $ 2013/14 $ Revenue Rent $ 14,954,891 $ 13,829,068 $ 13,964,399 Grants $ 4,026,136 $ 13,305,952 $ 9,593,277 Property Sales $ 1,219,508 $ 13,305,952 $ 28,125,405 Other (Bank Interest & Sundry) $ 1,462,242 $ 1,659,840 $ 1,991,557 Total Revenue $ 21,662,777 $ 34,094,360 $ 53,674,638 Total Expenses $ 20,818,342 $ 33,830,243 $ 45,765,093 Net Surplus/Loss $ 844,435 $ 264,117 $ 7,909,545 Cash at the end of the Financial Year $ 22,597,351 $ 27,659,232 $ 43,672,432 Total Assets $ 320,245,003 $ 315,945,074 $ 327,727,736 Total Liabilities $ 3,728,505 $ 4,053,143 $ 21,908,333 Total Equity $ 316,516,498 $ 311,891,931 $ 305,819,403 BHC is audited by Grant Thornton Brisbane, 145 Ann Street, Brisbane Qld 4000 BHC s financial foundation is the core strength of the business model attributed to the ownership of all assets and the structure of the rental framework, coupled with generous start up grants. Since its incorporation in 2002, the Company has received $126.7 million in grant funding from the State Government and $18.1 million in funding from the Brisbane City Council. The Company has received $95.9 million in Federal Government Funding through the Nation Building Social Housing Initiative & the National Rental Affordability Scheme. This money has enabled BHC to continue to develop a significant portfolio of assets which provide those in need with quality affordable rental accommodation whilst maintaining a sustainable positive income stream for the business. Revenue for the year was $21.66 million, a 36% decrease on the previous year. This is a result of a 91% decrease in unit sales due to a decline in the amount of stock being listed in the market and a 24% decrease in development funding grants received. The underlying operating profitability of BHC remains positive. The net surplus for the year was slightly up on the prior year reflecting an increase in Rental Income due to new developments entering the portfolio and a slight decrease in expenses. Total Expenses decreased by $13 million on the 2014/15 results due to decreases in costs associated with the sale of NRAS & Market for Sale units. The Company has a $30 million credit facility with Westpac Banking Corporation as at the 30th June 2016 which has not been drawn down. 5 BHC ANNUAL REVIEW 15/16

7 bhc skill based board of directors Professor John McAuliffe AM As a Property/Commercial Consultant specialising in Central Business District, sales purchase and development for many years Professor John McAuliffe AM holds extensive knowledge in the property development sector. John was the Independent Chair of BHC and Chair of the Property Committee during the year. His service extends to many other avenues including Chair of Multicap, Chair of Catholic Property (Brisbane), former Chair of Mater Health Services (Brisbane), former Chair of the Holy Spirit Private Hospital (Brisbane) and former Member of the Mount Olivet Hospital Board. Eloise Atkinson Eloise is an architect with more than 20 years experience in design and advocacy for public and affordable housing, working with local and state governments, community organisations and private developers. She is a Director of the multi-disciplinary design practice Deicke Richards, where her broad knowledge of housing and development models informs current work for aged care and seniors housing clients. She is also active in design and master planning within the education sector. Eloise is a Churchill Fellow and is committed to working with clients who might not otherwise access professional design services. Eloise Chaired the Tenancy Management Committee during the year. Geoff Woolcock Geoff is Wesley Mission Brisbane s Community Services Research Manager and an Adjunct Associate Professor at both Griffith University and QUT. His research looks at applying indicators of community strengths in disadvantaged communities. Geoff is a Fellow of the UQ Life Course Centre of Excellence, and is on the Qld organising committee for the Social Impact Measurement Network Australia (SIMNA). He is a Director of both the Logan Child-Friendly Community Charitable Trust and the Australian National Development Index (ANDI). Stuart Gregory With over 30 years experience in professional services as both a Finance Director and Chief Executive, Stuart has a wide array of skills in Finance, Administration and Business Management. Stuart has been a member of the BHC Board since 2005, is Chair of the Finance Committee and a member of the Audit and Risk Committee. Stuart is the Brisbane City Council appointed Director. Julie Heckenberg Julie holds over 25 years experience in leadership and organisational development, and education and training at both enterprise and Government levels. Julie has successfully translated her skills to the community sector through her work as Founder and Interim Board Member of Under 1 Roof. Under 1 Roof has gained recognition as an exemplar of cooperation and collaboration, demonstrating real outcomes for people with complex needs. Les Jones Les is a retired Grant Thornton Partner with a wide involvement in not for profit organisations. During his time at Grant Thornton Les headed up Assurance Service and was the Office Managing Partner for five years. Les has been a Director of various not for profit organisations and has also contributed to the Professional Education program for The Australian Institute of Chartered Accountants. Les is the Chair of the Audit and Risk Committee. John Gallimore A long-time Partner in a leading law firm, John is now a Consultant to that firm and is also a Board Member of Multicap, a disability services provider. He is a former Board Member of Queensland Sudden Infant Death Research Foundation and has had various roles in the Anglican Church in Brisbane. John is a State Government appointed Director of BHC. Ben Foster As a Professional Quantity Surveying consultant Ben has worked within the construction industry for over 20 years. Ben is currently a Director of the Queensland consultancy firm Steele Wrobel, after many years working on a range of large scale social infrastructure projects for Government and private enterprise. Ben has also held positions including that of chapter president for the Australian Institute of Quantity Surveyors. Brian Stewart Brian Stewart has extensive experience as a Company Chairman and Director. He is currently Chairperson of Legal Aid Queensland as well as Chairman of KNM Services PTY Ltd. Brian is a Life Member and Fellow of the UDIA (Queensland) and has extensive experience in leadership of policy and business initiatives associated with the Urban Development Industry in Queensland for over 10 years

8 barb s place/spectrum lutwyche road, lutwyche Barb s Place (also known as Spectrum) is the latest addition to BHC s portfolio. Built on land granted to BHC through the Queensland s Department of Transport and Main Roads, the development is sited directly over part of the roof area of the inner northern busway tunnel. To address the particular challenges of developing on a site of this nature, the building has been constructed as a light weight structure and has been limited to a total of three levels. The construction program included extensive monitoring and surveying of the busway tunnel to ensure no damage or movement to the tunnel was experienced as a result of construction activities. The development includes 60 residential units and five commercial tenancies on the ground floor. The residential accommodation includes a mix of studio, one and two bedroom apartments. To assist with the projects financial viability, 30 of the residential units will be rented at full market rental levels, with the remaining 30 to be offered at affordable rents. Recognising the decade long contribution of Professor John McAuliffe as Independent Chairperson of BHC s Board of Directors, the development that is promoted as Spectrum, will be fondly regarded as Barb s Place, in honour of John s late wife. ANNUAL REVIEW 2015/16 Brisbane Housing Company Limited Trading as BHC Creating Liveable Communities ACN: Level 2, 35 Astor Terrace Spring Hill QLD 4000 GPO BOX 544 Brisbane QLD 4001 P: (07) F: (07) BHC takes this opportunity to acknowledge the funding received from the Commonwealth Government, Queensland Government and Brisbane City Council and the continued support of all our community shareholders. BHC is a public company limited by shares, a public benevolent institution, an income tax exempt charity and deductible gift recipient. All images within this publication are of BHC tenants and properties. We thank our tenants and investors for their generous input. E: reception@bhcl.com.au W: