TIDMCSH
RNS Number : 7492F
Civitas Social Housing PLC
09 November 2022
9 November 2022
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
Trading & NAV Update
Increased NAV & Strong Portfolio Performance
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") update as at 30 September
2022, with a 2.63% increase in unaudited IFRS NAV per share and a
dividend declared in line with the previously upgraded full year
target.
Highlights:
-- Consistently robust financial and operational performance, in
line with the Board's expectations
-- Unaudited IFRS NAV per share increased by 2.63% to 114.84p (30 June 2022: 111.89p)
-- Second quarterly dividend of 1.425p declared in line with
full year target of at least 5.70p(1) (2022: 5.55p)
-- Rent roll increases with inflation and leases continue to be
billed in line with relevant CPI indexation
-- Positive progress made to hedge balance of loan book
-- Sustained high demand for the specially adapted
community-based homes that Civitas provides for vulnerable
adults.
Trading and Market Update
The Company is pleased to announce an increased unaudited NAV
per share of 114.84 pence, an uplift of 2.63% over the quarter, and
a second quarterly dividend of 1.425 pence per share as targeted,
consistent with the Board's previously announced increased target
of a total dividend of at least 5.70 pence(1) per share for the
year ended 31 March 2023. The NAV increase reflects the growth in
rental income as a result of inflation indexation.
Rental income continues to benefit from positive inflation
linkage. Leases that have indexed in the quarter have been billed
fully in accordance with their contractual terms including all CPI
related uplifts. Further details will be set out at the time of
publication of the Company's half year results to 30 September
2022.
Positive progress has been made to hedge the Company's loan book
against interest rate increases and a further announcement will be
made at the time of the Company's interim results scheduled for
early December.
The Company has also been making further progress on a
regulatory clause in partnership with its Approved Providers with
the objective of helping them to achieve regulatory compliance. The
clause has now been incorporated into specimen leases and the
Company is working to promote its engagement.
Demand for care-based community housing remains high and is
projected to increase further still by independent bodies. The
Company is at the forefront of ensuring the sector maintains focus
on quality, value for money and robust governance.
(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").
30 30
Sept June
IFRS NAV 2022 2022
Ordinary NAV (GBP'000) 696,357 683,366
------- -------
Ordinary NAV per share (pence) 114.84 111.89
------- -------
The portfolio, based on individual asset valuations, has been
valued overall as at 30 September 2022, at an average Net Initial
Yield of 5.27% (30 June 2022: 5.25%), 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 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.
Addressing the Discount to NAV
The Board is very mindful of shareholder concerns about the
share price discount to NAV; with significant discounts now
prevalent across the broader REIT and real estate sector. During
the quarter to 30 September 2022, the Company continued its share
repurchase programme by purchasing an additional 4,350,000 shares
into Treasury at an average price of 72.65p. Collectively, the
share repurchases during the quarter have enhanced IFRS NAV per
share by 0.28p.
The Board continues to work proactively with its advisers to
explore options for reducing the discount and enhancing shareholder
value.
Dividend Declaration
The Board has today declared a second quarterly dividend for the
period from 1 July 2022 to 30 September 2022 of 1.425p per Ordinary
Share as part of the previously stated dividend target of at least
5.70p per Ordinary Share for the year ended 31 March 2023.
The dividend will be paid on or around 9 December 2022, to
holders on the register as at 18 November 2022 (the "record date"),
with the corresponding ex-dividend date being 17 November 2022. 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 18 November 2022.
Quarterly Factsheet
The Company has today published its Factsheet for the quarter to
30 September 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
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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