TIDMCSH
RNS Number : 7754H
Civitas Social Housing PLC
06 August 2021
6 August 2021
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
Net Asset Values, Dividend Declaration and
Positive Trading and Market Update
Civitas Social Housing PLC ("Civitas" or the "Company") is
pleased to announce its quarterly net asset value ("NAV") as at 30
June 2021, a dividend declaration and to provide a positive trading
and market update.
Highlights:
-- Robust financial performance in line with expectations
-- Rents received as normal with no COVID-19 impact during the quarter
-- IFRS NAV per share of 108.42p resilient as expected (31 March 2021: 108.30p)
-- 1.3875p quarterly dividend declared in line with new full year target of 5.55p
-- 28 additional properties acquired for GBP22 million
-- M&G facility now invested or reserved for existing pipeline projects
-- Strong and diverse pipeline of new and accretive investment opportunities being considered
Trading and Market Update
The Company continues to perform in line with expectations and
c.99% of rents due have been collected as normal and unaffected by
COVID-19.
The Company is pleased to announce a slightly increased NAV
(reflecting the historic low level of CPI inflation) and an
increased quarterly dividend of 1.3875p as targeted, consistent
with the stated objective of paying a total dividend of 5.55p for
the year ending 31 March 2022.
Following the announcement of the national framework agreement
with E.ON to further improve the energy efficiency of our
properties and reduce maintenance costs and energy bills, we are
pleased to note that detailed planning work has now commenced on
the initial phase of 55 properties which will have a range of
measures undertaken to reduce carbon emissions.
The pandemic has further reinforced the vital role that housing
with care plays in society, enabling the most vulnerable to live in
safe and secure homes in the community while continuing to receive
the high-quality bespoke care provision that they need.
The Company once again offers its thanks and support to all its
partners and acknowledges their excellent performance throughout
the period.
Net Asset Values ("NAV"):
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 ("JLL").
30 31
Jun Mar
IFRS NAV 2021 2021
Ordinary NAV (GBP'000) 674,883 673,498
------- -------
Ordinary NAV per share (pence) 108.42 108.30
------- -------
The portfolio, based on individual asset valuations, has been
valued overall at 30 June 2021 at an average Net Initial Yield of
5.25% (31 March 2021: 5.26%) after taking into account the initial
costs of property acquisitions incurred by the Company and the
assumed costs of a subsequent theoretical sale. The individual
valuations are determined by JLL and are based on a range of
underlying metrics including applicable discount rates and expected
long-term inflation.
The growth in IFRS NAV reflects the contribution from the
indexation of leases in the period, (based on the historic low
level of CPI inflation) and the cost of modest discretionary
capital expenditure that has been incurred to enhance further the
quality of the Company's properties to reflect the individual needs
of tenants for the long term.
In the period to 30 June 2021, a dividend of 1.35p per Ordinary
Share was declared, as targeted, on 11 May 2021 in respect of the
quarter ended 31 March 2021 and paid on 11 June 2021, amounting to
GBP8.4 million.
Portfolio NAV
The unaudited Portfolio NAV, disclosed below, reflects an
independent RICS "Red Book" valuation prepared on a portfolio basis
by JLL.
30 31
Jun Mar
PORTFOLIO NAV 2021 2021
Ordinary NAV (GBP'000) 743,876 736,768
------- -------
Ordinary NAV per share (pence) 119.51 118.47
------- -------
The portfolio, as a single entity, has been valued at 30 June
2021 at 5.06% Net Initial Yield (31 March 2021: 5.06%) reflecting
the enhanced value from the aggregation of individual properties
into a single portfolio company and the positive effects of the
stamp duty adjustment noted below.
The JLL portfolio valuation incorporates two additional
assumptions when considering Red Book valuation. Firstly, that the
assumed theoretical sale costs (from Civitas to a subsequent buyer)
are reduced as the portfolio is assumed to be sold (with all
properties within SPVs) with stamp duty being charged at 0.5% on
the sale of shares in SPVs as opposed to 5.0% for the sale of each
underlying property.
Secondly, that the portfolio is sold in its entirety rather than
as individual properties (making it better suited to a wider group
of institutional buyers) and so attracting more competitive
pricing. This assumption is supported by transactional evidence
that JLL has observed in the market.
Dividend Declaration
The Board has today declared a first quarterly dividend for the
period from 1 April 2021 to 30 June 2021 of 1.3875p per Ordinary
Share as part of the increased stated dividend target of 5.55p per
Ordinary Share for the year ending 31 March 2022.
The dividend will be paid on or around 10 September 2021 to
holders on the register as at 20 August 2021 (the record date) with
the corresponding ex-dividend date being 19 August 2021. The
dividend will be paid as a REIT property income distribution
("PID").
The increased target dividend for the year ending 31 March 2022
reflects both the strong underlying cash generation that the
Company continues to achieve and the Board's positive view of the
Company's prospects in the current financial year at the present
time.
Investment and Pipeline Update
During the quarter to 30 June 2021, the Company completed the
previously announced acquisition of 15 supported living and care
facilities in South Wales for a total consideration of GBP10.9
million, 10 supported living properties across Hertfordshire,
Essex, Suffolk and Wales for a total consideration of GBP8.6
million and three supported living properties (with one exchanged)
located in the East of England for a total consideration of GBP2.5
million (all excluding purchase costs).
These properties provide in total 96 beds for individuals with
learning disabilities and mental health care needs with dedicated
facilities bespoke to each property to develop and enhance
independent living skills such as cooking, numeracy and
literacy.
The Company and Investment Adviser are in active discussions
over the potential acquisition of a range of high-quality existing
and new build properties to be acquired at completion without the
need for forward financing. With limited uncommitted capital
resources, the Company is continuing to evaluate options, including
raising equity, to fund further investments to enhance shareholder
returns.
The number and quality of these investment opportunities
reflects many of the unique strategic relationships that have been
established by the Company over recent years, in particular with
leading specialist care providers as well as with several new
significant counterparties based on the recent shareholder approval
for a broadening of the Company's investment policy.
Quarterly Factsheet
The Company has today published its Factsheet for the quarter to
30 June 2021 and this is available to view on
the Company's website .
ENDS
For further information, please contact:
Civitas Investment Management
Limited
Andrew Dawber Tel: +44 (0)20 3058 4846
Paul Bridge Tel: +44 (0)20 3058 4844
Panmure Gordon
Sapna Shah Tel: +44 (0)20 7886 2783
Tom Scrivens Tel: +44 (0) 20 7886 2648
Liberum Capital Limited
Chris Clarke / Darren Vickers Tel: +44 (0) 20 3100 2000
/ Owen Matthews
Buchanan
Helen Tarbet / Henry Wilson Tel: +44 (0) 20 7466 5000
Hannah Ratcliff / George Beale civitas@buchanan.uk.com
Notes:
Civitas Social Housing PLC (CSH) was created in 2016 by Civitas
Investment Management Limited as the first dedicated London listed
REIT to raise long-term, sustainable, institutional capital to
invest in care-based social homes and healthcare facilities across
the UK. So far, Civitas has completed more than 120 individual
transactions to build the largest portfolio of its kind that has
been independently valued at GBP915.6million (31 March 2021). CSH
now provides homes for 4,391 working age adults with long-term care
needs, in 648 bespoke properties that are supported by 119
specialist care providers, 16 approved providers and working with
over 178 individual local authorities.
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