Civitas Social Hsng. - Net Asset Value and Trading Update
08/02/2023 07:00
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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
£70.8m 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").
IFRS NAV 31 30
Dec Sept
2022 2022
Ordinary NAV (£'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
(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 £999.5million (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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