Civitas Social Hsng. - Net Asset Value and Trading Update
09/05/2023 09:45
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RNS Number : 6667Y Civitas Social Housing PLC 09 May 2023
9 May 2023
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
Trading & NAV Update
Another Robust Performance; Dividend Declared in Line with Full Year Target
Civitas Social Housing PLC, the UK's leading care-based and healthcare REIT,
is pleased to announce its quarterly net asset value ("NAV") as of 31 March
2023, together with a dividend declared in line with the full year target of
at least 5.70p(1) per share.
Highlights:
· Continued robust financial and operational performance, in line with the
Board's and the investment adviser's expectations
· Rent roll continues to benefit broadly from inflation indexed leases
· Unaudited NAV per share declined by 1.60% to 109.16p (31 December
2022: 110.93p) reflecting slight widening of valuation yields and
mark-to-market movements of financial swaps/caps on debt facilities
· Fourth 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 currently 100% fixed following completion and
drawdown of a new 5 year debt facility, announced in February
· Focused model that provides highly adapted properties where high
levels of bespoke care are delivered to residents by 131 separate specialist
care providers
· Sustained high levels of demand for the specially adapted
community-based homes that Civitas provides for vulnerable adults
Trading and Market Update
In the period to 31 March 2023 the unaudited NAV per share declined by 1.60%
to 109.16 pence. This reflected both a slight widening of the average net
initial yield from 5.45% at 31 December 2022 to 5.55% at 31 March 2023 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.
The asset class into which the Company invests has continued to demonstrate
robust underlying cashflows. Whilst noting that c. 31% of the Company's leases
are capped at 4% CPI, with the balance subject to rental increases at CPI or
CPI+1, the Company has continued to enjoy good growth in rental income
combined with cash collections. At the same time, the Company has now ensured
that its entire debt book benefits from fixed rates.
The ability of developers to deliver new stock into the sector has been
limited by margin pressures as a result of increases in building and
development costs. This, combined with continued demand from local authorities
for additional properties that are adapted to support higher levels of care,
continues to underpin high levels of demand in the sector. The gap between
supply and demand is expected to continue to grow as demand is predicted to
increase further in coming years.
The Company's investment adviser, Civitas Investment Management Limited
("CIM"), continues to work closely with all of its approved providers, care
providers and stakeholders through CIM's specialised team of individuals drawn
from the sector. The ability to deliver specialist input into the Company's
portfolio and to manage the portfolio at a granular level are regarded as
essential components of the asset management activities for Civitas' nearly
700 properties.
Net Asset Values ("NAV"):
NAV
The unaudited NAV, disclosed below, reflects an independent RICS "Red Book"
valuation prepared on an individual asset basis by Jones Lang LaSalle ("JLL").
NAV 31 31
Mar Dec
2023 2022
Ordinary NAV (£'000) 661,909 672,656
Ordinary NAV per share (pence) 109.16 110.93
The Company's portfolio, based on individual asset valuations, has been valued
overall as at 31 March 2023, at an average Net Initial Yield of 5.55% (31
December 2022: 5.45%), 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 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 fourth quarterly dividend for the period from 1
January 2023 to 31 March 2023 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 9 June 2023, to holders on the register
as of 19 May 2023 (the "record date"), with the corresponding ex-dividend date
being 18 May 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 19 May 2023.
Quarterly Factsheet
The Company has today published its Factsheet for the quarter to 31 March 2023
and this is available to view on the Company's website
(https://www.civitassocialhousing.com/investors/results-reports-and-presentations/#currentPage=1)
.
(1) This is a target and not a formal dividend forecast or a profit forecast
ENDS
For further information, please contact:
Civitas Investment Management Limited
Andrew Dawber Tel: +44 (0)20 3058 4846
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 131 specialist care providers, 18 approved
providers and working with over 178 individual local authority partners.
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