Civitas Social Housing PLC AGM Trading Update (5153Z)
September 15 2022 - 2:00AM
UK Regulatory
TIDMCSH
RNS Number : 5153Z
Civitas Social Housing PLC
15 September 2022
15 September 2022
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
AGM Trading Update
Consistent Portfolio Performance
Civitas Social Housing PLC ("Civitas" or the "Company"), one of
the UK's leading care-based and healthcare REITs, provides the
following trading and market update ahead of its Annual General
Meeting to be held today.
The Company's financial and operational performance continues to
be robust, and in line with management expectations with rents
indexed in accordance with their terms and reflecting current
levels of indexation.
Civitas continues to see strong and growing demand for its
specially adapted community-based properties, which provide homes
for life for working age adults with a range of complex needs who
require the high levels of specialist care for which the portfolio
is designed. There has long been national consensus among health
and social care experts that bespoke care in the community offers
the highest quality of life for people with complex disabilities.
The Government consultation, launched by the Department for
Levelling Up, Housing and Communities, on a new social housing rent
cap in 2023 currently excludes Specialist Supported Housing and
other specialist sub-sectors.
The Company's current leverage stands at 34%, comfortably within
the self-imposed maximum level of 40% set at the time of IPO.
Progress is being made in increasing the average tenor of
facilities and reducing exposure to interest rate movements for
that part of the loan book that is not already fixed. A further
announcement in this regard will be made in due course.
The first phase of the partnership with E.ON has delivered a
significant reduction in CO(2) emissions and improved EPC ratings
at several properties. Civitas is targeting a minimum EPC "A-C"
rating by 2030 across the whole portfolio. The Company also remains
confident that its new lease clause proposal, which it aims to roll
out over the medium term, will help its housing association
counterparties become better able to achieve regulatory compliance.
Civitas announced earlier this week that the clause has received
approval from the Boards of the two initial housing associations
with whom it has been discussed, and is now being introduced to
several specimen leases.
In the last 12 months the Company has bought back GBP10.9
million worth of shares, all at a discount to the prevailing Net
Asset Value ("NAV"), thus cumulatively enhancing NAV per share by
0.4p. A share buy-back programme was instituted in late 2021. The
Board has now given further instruction in this regard and
purchases have recommenced.
Beyond the various initiatives noted above, the Board is also
actively considering and exploring other ways to address the
discount to NAV and to restore shareholder value.
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 / Verity Parker 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. CSH's portfolio has been independently valued at
GBP968.8million (31 March 2022). CSH now provides homes for 4,594
working age adults with long-term care needs, in 697 bespoke
properties that are supported by 130 specialist care providers, 18
approved providers and working with over 178 individual local
authority partners.
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END
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