TIDMCSH
RNS Number : 2221P
Civitas Social Housing PLC
08 February 2023
8 February 2023
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
Net Asset Value and Trading Update
Civitas Social Housing PLC ("Civitas" or the "Company"), the
UK's leading care-based and healthcare REIT is pleased to announce
its quarterly net asset value ("NAV") as of 31 December 2022,
together with a dividend declared in line with the full year target
of at least 5.70p(1) per share.
Highlights:
-- Consistently robust financial and operational performance, in
line with the Board's expectations
-- Rent roll increased with inflation and lease billings
continue to reflect CPI inflation increases
-- Unaudited IFRS NAV per share declined by 3.40% to 110.93p (30
September 2022: 114.84p) reflecting slight widening of valuation
yields and mark-to-market movements of financial swaps/caps on debt
facilities
-- Third quarterly dividend of 1.425p per share declared in line
with full year target of at least 5.70p(1) per share (2022: 5.55p
per share)
-- All debt facilities now 100% fixed with drawdown of new
five-year GBP70.8m facility to replace certain existing facilities
on track for completion as planned later this month
-- Focused model that provides highly adapted properties where
high levels of bespoke care are delivered to residents by 130
separate specialist care providers
-- Sustained high levels of demand for the specially adapted
community-based homes that Civitas provides for vulnerable
adults
-- Civitas' business model and portfolio has always been
directed to supporting the delivery of high levels of care for
vulnerable individuals in bespoke, adapted care-based housing. The
average number of care hours provided in a typical Civitas property
is 50 hours per week, qualifying the Company's portfolio as
Specialist Supported Housing which is exempt from caps on housing
benefit
-- The Board continues to work proactively with its advisers to
explore options for reducing the discount and enhancing shareholder
value.
Trading and Market Update
In the period to 31 December 2022 the unaudited NAV per share
declined by a total of 3.40% to 110.93 pence. This reflected both a
slight widening of the average net initial yield from 5.27% at 30
September 2022 to 5.45% at 31 December 2022, as a result of the
broader macro-economic environment, and the effects of the
mark-to-market valuations of the Company's financial swaps and
caps.
From the Company's constant activity within the specialist
social housing sector, it is evident that demand for quality
accommodation in a community environment remains strong whilst
levels of supply have further reduced. This decline in part
reflects the effects of inflation on the cost of building and
adaptation works and the ability for developers to deliver highly
adapted properties within a tight rental framework.
Independent research confirms the long-term demand trends that
exist in the sector, in which the Company is a market leader, and
which provide confidence over the Company's future rent roll. The
delivery of long-term care for vulnerable individuals remains a key
service that receives priority funding from local authorities who
have a primary responsibility for the well-being of such
individuals.
(1) This is a target and not a formal dividend forecast or a
profit forecast
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").
31 30
Dec Sept
IFRS NAV 2022 2022
Ordinary NAV (GBP'000) 672,656 696,357
------- -------
Ordinary NAV per share (pence) 110.93 114.84
------- -------
The portfolio, based on individual asset valuations, has been
valued overall as at 31 December 2022, at an average Net Initial
Yield of 5.45% (30 September 2022: 5.27%), after taking into
account the initial costs of property acquisitions incurred by the
Company and the assumed costs of a subsequent theoretical sale. A
slight yield softening in the portfolio was experienced in the
period as a result of the broader macro-economic environment. 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 IFRS NAV reflects the contribution from the indexation of
leases in the period, less the cost of 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.
Dividend Declaration
The Board has today declared a third quarterly dividend for the
period from 1 October 2022 to 31 December 2022 of 1.425p per
Ordinary Share as part of the previously stated dividend target of
at least 5.70p(1) per Ordinary Share for the year ended 31 March
2023.
The dividend will be paid on or around 10 March 2023, to holders
on the register as of 17 February 2023 (the "record date"), with
the corresponding ex-dividend date being 16 February 2023. The
dividend will be paid as a REIT property income distribution. The
Company operates a Dividend Reinvestment Plan ("DRIP"), which is
managed by its registrar, Link Group. For shareholders who wish to
receive their dividend in the form of shares, the deadline to elect
for the DRIP is 17 February 2023.
Quarterly Factsheet
The Company has today published its Factsheet for the quarter to
31 December 2022 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 / 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
GBP999.5million (30 September 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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