The asset strategy of your Housing Association requires the homes in your asset portfolio to meet the needs of your customers, communities and for the owning organisations.
Adopting a strategic approach to asset management can improve the income generated by existing stock. This is a vital revenue stream for ongoing maintenance and to support further development goals.
Part of the asset strategy often stipulates an NPV tool like SDS StockProfiler is used to support the stock valuation, rationalisation and disposal. NPV modelling helps understand the value of each asset, individually and grouped across the portfolio. Knowledge of this value contributes to the financial and social performance of the business.
SDS StockProfiler can provide insight and understanding of the asset portfolio. There are a number of ways to do this:
- What are the bottom 10% of units by NPV valuation
- What are the top 10% by market valuation
- Which units represent the top 5% of open market sale valuation
Using SDS StockProfiler enables the strategic asset manager and data analyst to review the units that provide the greatest income over the 30-year life of the Business Plan. Or which assets are a liability, this can be as a cost to the business income or a drain on the Business Plan over the long-term.
When you identify your poorly performing assets, a more detailed appraisal of each asset can be undertaken. Factors including social and non-financial indicators add to the initial review, for example
- What is the density of owned units in a 5 mile area around this unit.
- What is the level of repairs on this unit in the past 3 years
- What is the expected SAP EPC in 2030
- Is the property charged, who is the lender
- Is there a clawback on any receipts
- Are there any restrictions on the sale of the property
All this data is mined and consolidated into SDS StockProfiler from internal and external data sources to give one holistic view. With all the information in one place, the asset manager can provide a recommendation to dispose of and use funds to build more affordable homes.
More From SDS
Reassessing financial viability and investment modelling. This webinar on Wednesday 29th April 2020 focussed on the fundamentals of scheme viability