Civitas Social Hsng. - Net Asset Value and Trading Update
09/11/2022 07:00
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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").
IFRS NAV 30 30
Sept June
2022 2022
Ordinary NAV (£'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
(https://www.civitassocialhousing.com/investors/results-reports-and-presentations/#currentPage=1)
.
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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