Civitas Social Hsng. - AGM Trading Update
15/09/2022 07:00
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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 £10.9 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 / Owen Matthews Tel: +44 (0) 20 3100 2000
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 £968.8million (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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