TIDMCSH
RNS Number : 3891E
Civitas Social Housing PLC
08 February 2018
9(th) February 2018
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
Net Asset Value, Dividend Declaration and Investment Update
The Board of Civitas Social Housing PLC ("Board"), the first
London listed REIT dedicated to investing into regulated social
housing in England and Wales, is pleased to announce its portfolio
net asset value ("Net Asset Value" or NAV") per ordinary and C
share as at 31(st) December 2017. In addition, the Board is pleased
to announce the latest dividend on the ordinary shares and provide
an update on the continued success in the deployment of
capital.
Net Asset Value
Ordinary Shares
As at 31(st) December 2017, the unaudited portfolio NAV per
ordinary share was 112.8 pence (30 September: 109.6 pence(1) )
reflecting an independent RICS "Red Book" valuation prepared on a
portfolio basis by Jones Lang LaSalle Ltd.
The movement in NAV attributable to the ordinary shares since
30(th) September 2017 is as follows:
GBP
Net Asset Value as at 30(th)
September 2017(2) 383,599,659(1)
Operating profits 3,112,659
Capital appreciation 10,897,477
Dividend paid (2,625,000)
Net Asset Value as at 31(st)
December 2017(2) 394,984,795
C Shares
As at 31(st) December 2017, the unaudited portfolio NAV per C
share was 98.4 pence (14 November: 98.0 pence) reflecting an
independent RICS "Red Book" valuation prepared on a portfolio basis
by Jones Lang LaSalle Ltd.
The movement in NAV since admission of the C shares on 14(th)
November 2017 is as follows:
GBP
Net Asset Value as at 14(th)
November 2017 295,960,000
Operating losses (336,019)
Capital appreciation 1,485,950
Net Asset Value as at 31(st)
December 2017(2) 297,109,931
(1)
This NAV has been
restated from the figure in the 18(th) October 2017 announcement
to correct a clerical error
(2)
Based on portfolio valuation
Commentary
The Company publishes a quarterly portfolio NAV, reflecting a
portfolio-based valuation, and a semi-annual IFRS NAV (at the time
of the Company's interim and full year results) reflecting a "sum
of the parts" valuation, in each case with the investment
properties subject to independent valuation by the Company's
appointed property valuers. This provides the most detailed range
of valuation information.
The growth in the underlying asset value of the investment
properties is driven by a number of factors. With an extensive
network of relationships, built over many years, and committed
supply agreements, the Company is able to secure properties on
attractive terms that meet its investment objectives. These
properties are typically off-market purchases and often not
available to other buyers, which generates growth in asset values
when set against normal market pricing. The Company has secured a
leading position in the social housing sector and now enjoys
significant scale with exposure across more than 100 local
authority areas, 2,469 underlying tenants and over GBP440 million
(excluding purchase costs) of acquisitions.
The Company is also committed to high-quality social outcomes
which is reflected in both its community-based activities, its
independent social impact reporting and the manner in which it
conducts its investment activities. This has led to investment
opportunities being offered to the Company as a sole preferred
purchaser. The Company has demonstrated an ability to undertake
property acquisitions in a professional and efficient manner, with
high standards of governance/diligence and this has proven to be
attractive to professional and socially based vendors.
The ability to acquire homes at attractive valuations is
reflected in the asset growth of both the ordinary shares and the C
shares and is accounted for in both the portfolio net asset value
and the IFRS net asset value.
Dividend Declaration
The Board has today declared a fourth quarterly dividend in
respect of the ordinary shares for the three months to 31(st)
December 2017 of 0.75 pence per ordinary share, payable on or
around 9(th) March 2018 to ordinary shareholders on the register on
23(rd) February 2018. The ex-dividend date will be 22(nd) February
2018. The dividend will be paid as a REIT property income
distribution (PID).
The Company has met its initial dividend target set at IPO and
has declared total dividends of 3.0 pence per ordinary share from
IPO to the period ended 31(st) December 2017 and is targeting a
dividend of 5.0 pence per ordinary share in respect of the calendar
year from 1(st) January 2018 to 31(st) December 2018(3) .
The Company expects to declare its first dividend in respect of
the C shares in relation to the period ending 31(st) March 2018.
(3)
The target dividend is a target only and not a forecast. There
can be no assurance that the target will be met and it should not
be taken as an indication of the Company's expected or actual
future results
Investment Update
In the period since IPO to 8(th) February 2018 the Company has
made the following investments and created a nationally based,
diversified portfolio of regulated social housing in England and
Wales.
Period 31-Mar-17 30-Jun-17 30-Sept-17 31-Dec-17 8-Feb-18
--------------------- --------- --------- ---------- --------- --------
Investment
(excluding
purchase costs)
(GBPm) 106 206 284 431 440
--------------------- --------- --------- ---------- --------- --------
Properties 82 167 282 384 392
--------------------- --------- --------- ---------- --------- --------
Tenancies 487 1,130 1,820 2,405 2,469
--------------------- --------- --------- ---------- --------- --------
Local Authorities 32 68 82 99 102
--------------------- --------- --------- ---------- --------- --------
Housing Associations 5 7 10 10 11
--------------------- --------- --------- ---------- --------- --------
Care Providers 25 42 50 59 61
--------------------- --------- --------- ---------- --------- --------
The completed investments represent the full deployment of the
IPO net proceeds. It is expected that a final investment will be
made shortly at the time of securing the final tranche of debt
finance for the benefit of the ordinary shares. As at 8(th)
February 2018, GBP41 million (before purchase costs) has been
invested for the benefit of the C shares.
The Company is pleased to note the total investment of GBP440
million (before purchase costs) as at 8(th) February 2018 which
reflects the breadth of opportunity and sector relationships that
Civitas Housing Advisers Limited, the Investment Advisor has
developed on behalf of the Company.
Quarterly Fact Sheet
The Company has today published its Fact Sheet for the quarter
to 31(st) December 2017 and this is available to view on the
Company's web site,
http://civitassocialhousing.com/investor-relations/reports-and-publications/.
For further information, please contact:
Civitas Housing Advisors Limited
Paul Bridge Tel: +44 (0)20 3709 4622
Andrew Dawber Tel: +44 (0)20 3709 4626
Cenkos Securities PLC
Sapna Shah Tel: +44 (0)20 7397 1922
Tom Scrivens Tel: +44 (0)20 7397 1915
Pagefield
Philip Dennis Tel: +44 (0)7947 868206
David Leslie Tel: +44 (0)7584 070274
Notes:
Civitas Social Housing PLC is the first Real Estate Investment
Trust offering pure play exposure to social housing in England and
Wales. The Company is managed by Civitas Housing Advisors Limited.
The Company's ordinary shares are listed on the premium listing
segment of the Official List of the Financial Conduct Authority and
were admitted to trading on the main market for listed securities
of the London Stock Exchange in November 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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