Tax strategy

Financial summary and review

Loan maturity profile

1.80

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20 RPI

Floating

Capped Fixed (ISDA swaps, requires collateral against MTM)

Fixed (embedded, requires collateral against MTM) Fixed (embedded, no collateral)

Total Facilities

Exposure to interest rates is managed through the use of standalone and embedded hedges. At 31 March 2017, £340.5m (2016: £350m) of standalone interest rate swaps were outstanding, with an average maturity of 7 years. Genesis’ total hedged position at 31 March 2017 (consisting of fixed, capped and RPI linked interest rates) was £1,216m, representing 80% of the total borrowings (2016: £1,294m; 87% of total borrowing).

Credit rating

Genesis has a credit rating of A- by Standard and Poor’s and a credit rating of Baa1 by Moody’s.

Tax strategy

Genesis has published a tax strategy, which sets out its approach to tax management within Genesis Housing Association and its subsidiary undertakings. The strategy can be accessed on our website via the link below:

www.genesisha.org.uk/about_ genesis/openness_and_ transparency/reports.aspx

Future outlook

Merger

Genesis has continued to explore partnerships to increase its financial resilience and ability to deliver more affordable homes. On 19 July 2017, the Boards of Notting Hill Housing and Genesis Housing Association agreed in principle to merge, a move that would create one of the country’s largest housing associations. The boards of both organisations agreed the merger proposal as the best decision for both businesses, their residents, their shareholders and for London and the South East. The merger is expected to complete in early 2018.

Neil Hadden Chief Executive

From left to right: Linde Carr, resident board member at Notting Hill Housing; Elizabeth Froude, Deputy Chief Executive Designate, Notting Hill Genesis; Neil Hadden, Genesis Chief Executive; Kate Davies, Chief Executive Designate, Notting Hill Genesis; Dipesh Shah, Chair Designate, Notting Hill Genesis.