London’s largest housing association Peabody reported a surplus of £122m in its end of year results, up 5% on the previous year.
Peabody’s turnover rose 14.6% to £662m for the year ended 31 March, bolstered by its acquisition of Town and Country Housing.
However, its operating margin fell to 30% from 31% last year, against a target of 33%. The margin on social housing remained at 32%.
The housing association attributed the fall to rent reductions and increased operating costs associated with building safety.
During the year, it completed 1,048 new homes, a drop of 5% against the previous year and 93% of its annual target. The number of new starts more than doubled to 2380, achieving 94% of its target.
Peabody reported a £9m drop in the valuation of its investment portfolio in 2020, which it said takes into account the affects of Covid-19.
Revaluation saw £14m shaved off commercial property to £197m at the end of the period. This was offset by a £5m uptick in its market rent portfolio valuation, which with new acquisitions rose to £185m.
Additions to schemes under construction saw the portfolio increase overall to £482m.
Chief financial officer Eamonn Hughes said: “We retain strong interest cover, gearing and debt ratios and these provide a platform for us to best help those in need.
“Our strong financial position and liquidity mean that we are able to manage the impacts of Covid-19 and to continue our commitment to invest in developing new homes in the future.”
Earlier this year chief executive Brendan Sarsfield told EG the housing association had cut its development target for next year by more than a third to 2,000 homes, as it scales back its development programme and risk appetite in the wake of the pandemic.
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