TIDMCSH
RNS Number : 6026P
Civitas Social Housing PLC
30 May 2018
30th May 2018
Net Asset Values, Investment and Market Update
30th May 2018
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
The Board of Civitas Social Housing PLC ("Board"), the first
London listed Real Estate Investment Trust ("REIT") dedicated to
investing into regulated social housing in England and Wales, is
pleased to announce its quarterly net asset value ("Net Asset
Value" or "NAV") as at 31 March 2018.
Net Asset Values
IFRS NAV
The unaudited IFRS NAV, disclosed below, reflects an independent
RICS "Red Book" valuation prepared on an individual asset basis by
Jones Lang LaSalle Ltd.
30 Sep 2017 Increase
or 14 Nov %
IFRS NAV 31 Mar 2018 2017(1)
Ordinary NAV (GBP'000) 369,395 361,300 +2.2%
------------ ----------- --------
Ordinary NAV per share 105.5 103.2 +2.2%
------------ ----------- --------
C Share NAV (GBP'000) 298,752 295,960 +0.9%
------------ ----------- --------
C Share NAV per share 98.9 98.0 +0.9%
------------ ----------- --------
(1 Comparable figures for the C share reflect the net proceeds
at issue on 14 November 2017.)
Portfolio NAV
The unaudited Portfolio NAV, disclosed below, reflects an
independent RICS "Red Book" valuation prepared on a portfolio basis
by Jones Lang LaSalle Ltd.
31 Mar 31 Dec 2017 Increase
Portfolio NAV 2018 %
Ordinary NAV
(GBP'000) 398,505 394,985 +0.9%
-------- ----------- --------
Ordinary NAV
per share 113.9 112.8 +0.9%
-------- ----------- --------
C Share NAV
(GBP'000) 302,766 297,110 +1.9%
-------- ----------- --------
C Share NAV
per share 100.3 98.4 +1.9%
-------- ----------- --------
Individual properties acquired by the Company are often
relatively small in size and as such, benefit from being
incorporated within a larger diversified portfolio. As at 31 March
2018, the Company had acquired 414 properties in 46
transactions.
The Portfolio NAV is intended to provide shareholders with an
indication of the inherent value likely to be obtained by the sale
of the portfolio as a single entity within its existing corporate
structure. It is considered that comparable market transactions
offer both support for the carrying value of the Company's
properties on a portfolio basis and demonstrate the willingness of
acquirers to pay enhanced values for larger portfolios.
The IFRS NAVs will be announced on a quarterly basis going
forward supported by the Portfolio NAVs.
Total Return
The Company achieved a total return in respect of the Ordinary
Shares of 10.8% from IPO to 31 March 2018 based upon dividends
declared and paid in respect of the calendar year 2017 and the
growth in capital value as expressed by the IFRS NAV as at 31 March
2018.
Investment Update
During the period a number of the leases entered into by the
Company have seen their lease income increase as a result of annual
indexation clauses and the run-rate of lease income at 31 March
2018 was GBP28.4 million. This is expected to grow significantly as
the Company moves to full investment over coming months and
supports the Company's target dividends.
In the period since IPO the Company has made the following
investments and created a quality, 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 31-Mar-18
Investment (excluding purchase costs) (GBPm) 106 206 284 431 472
---------- ---------- ----------- ---------- ----------
Properties 82 167 282 384 414
---------- ---------- ----------- ---------- ----------
Tenancies 487 1,130 1,820 2,405 2,621
---------- ---------- ----------- ---------- ----------
Local Authorities 32 68 82 99 109
---------- ---------- ----------- ---------- ----------
Housing Associations 5 7 10 10 11
---------- ---------- ----------- ---------- ----------
Care Providers 25 42 50 59 64
---------- ---------- ----------- ---------- ----------
Following investment of the GBP350 million Ordinary Share equity
and corresponding draw-down of GBP92.5 million of debt in respect
of the Ordinary Shares, the Company is now making good progress in
deploying the proceeds of the C Share issue. A total of GBP85.8
million has been invested in the C Share equity of which GBP41
million was invested in the quarter to 31 March 2018.
The Company has also continued to expand the network of Housing
Associations and care providers that it interacts with, to further
diversify the portfolio. In particular the Company is undertaking
initial due diligence in respect of several potential new Housing
Association partners that it is seeking to work with during 2018
and beyond and building relationships with additional care
providers both from a due diligence standpoint and also as
potential sources of properties to acquire.
Market Update
The need for increased levels of housing of all types and
tenures continues to be a prominent issue for all political
parties. The government has recently set a new target to provide
300,000 new homes each year and is investigating various
initiatives to achieve this, with current supply being well behind
that required.
The current shortfall in housing provision is felt acutely
within the specialist areas of care. The result that good quality
properties that are established to provide healthcare in the
community are today in significant and growing demand and likely to
remain so for many years to come.
Against this backgrounds the market to acquire Specialist
Supported Housing remains robust with a range of both private and
public buyers seeking to purchase properties and with an element of
upward pressure on pricing as a result. Despite this, the Company
utilises its relationships, existing agreements and buying power to
acquire good quality properties at competitive prices that remain
firmly within the yield range set out at the time of IPO in
2016.
In addition, properties and counterparties continue to be
turned-down (GBP00+million in total since establishment) as a
result of the due diligence and acquisition requirements set by the
Company. The issues identified earlier in the year by First
Priority Housing Association have emphasised further the importance
of ensuring that counterparty, transaction and lease structures are
robust and sustainable.
The Company itself continues to enhance its own due diligence
procedures with the development of its best practice investment
protocols and procedures to further secure rental income and
deposits resting with housing association partners.
On 9 May 2018 the Company announced that all leases held with
First Priority had been successfully assigned to Falcon Housing
Association.
Pipeline
The various sources of pipeline properties originated by the
Investment advisor and made available to the Company offer a good
level of opportunity from which the Company can, subject to due
diligence acquire a substantial number of additional properties.
This is further supported by the agreements that the Investment
Advisor has successfully put in place with relevant
counterparties.
As a consequence, the Company remains confident of its ability
to deploy the C Share equity in a timely manner consistent with the
terms of the conversion of the C Share into Ordinary Shares later
this year.
Dividend
As announced on 10 May 2018, the Directors approved a quarterly
dividend of 1.25 pence per Ordinary Share. The Directors are
targeting to pay a total dividend of 5.0 pence per Ordinary Share
in respect of the calendar year to 31 December 2018. The Directors
also approved the first dividend for the C shares of 1.13 pence per
C share. The holders of C Shares are entitled to a cumulative
preferential dividend of 3.0 per cent per annum pro-rated up to the
conversion of the C Shares.
The Dividends will be paid on or around 8 June 2018 to holders
on the respective registers as at 18 May 2018, the corresponding
ex-dividend date being 17 May 2018.
Quarterly Fact Sheet
The Company has today published its Fact Sheet for the quarter
to 31 March 2018 and this is available to view on the Company's
website,
http://civitassocialhousing.com/investor-relations/reports-and-publications/.
Manager's Update
The Company has today published a manager's update for the
quarter to 31 March 2018 and this is available to view on the
Company's website,
http://civitassocialhousing.com/investor-relations/reports-and-publications/.
Annual Results
The annual report and accounts, including notice of the Annual
General Meeting, of the Company for the period from IPO to 31 March
2018 will be published on or around 12 June 2018.
Annual General Meeting
The annual general meeting of the Company will be held at 2pm on
2 August 2018 at Norton Rose Fulbright offices, 3 More London
Riverside, London, SE1 2AQ
For further information, please contact:
Civitas Housing Advisors Limited
Paul Bridge Tel: +44 (0)20 3058 4844
Andrew Dawber Tel: +44 (0)20 3058 4846
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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