What is driving the DNR option to release the capital asset “Do Not Resuscitate” What is driving the DNR option to release the capital asset DNR Group's Findings

Drivers Govt. push for greater efficiencies in the sector Regulator push for managing assets effectively Need to raise money to support development Need to raise money to cope with impact of Govt. announcements i.e. 1% rent reduction, welfare changes Want to be more ‘commercial’ in approach If don’t have financial imperative – Is just carrying on in the same way acceptable? DNR Group's Findings

What needs to be considered? Financial Factors Social Factors DNR Group's Findings

Financial Value Factors NPV performance of each asset Planned expenditure over 30 years (including energy performance) Day to day expenditure Rental Income Service charge recovery Void Period Open market Value DNR Group's Findings

Social Value Factors Concentration of Stock - Is the unit in a block or street with other RP owned tenanted units? Is the unit family sized? Is the rest of the property tenanted? House, Flat with own front door or shared If in a block what floor is it on? Is there a lift? Decorative order Garden Central heating Desirable Features Location popularity Flood risk area Location of Services (transport /green spaces) Planned Regeneration Geographical relevance Long term demand Management challenges (Case study – Street Properties – Hexagon HA) DNR Group's Findings

Alternative Options Remodel Redevelop Change tenure Refurbish (Case Study – Sheltered Housing Block – FFT) DNR Group's Findings

Information and Process is Key Does the sector have the information required to take a more sophisticated approach to asset management? What tools are available to assist? (Case Study- SDS Stock Profiler - Sovereign) To minimise void periods during decision making – System has to be simple ‘ Option Appraisal approach – Financials overlaid with social considerations. Final decision will be made in the context of organisational objectives DNR Group's Findings

What else should the group consider? DNR Group's Findings