TIDMCSH
RNS Number : 7045W
Civitas Social Housing PLC
03 August 2018
3 August 2018
Net Asset Values, Investment and Market Update
3 August 2018
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
The Board of Civitas Social Housing PLC ("Board"), the first
London listed Real Estate Investment Trust ("REIT") dedicated to
investing into regulated social housing in England and Wales, is
pleased to announce its quarterly net asset value ("Net Asset
Value" or "NAV") as at 30 June 2018.
Net Asset Values
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 Ltd.
31 Mar 2018 Increase
IFRS NAV 30 June 2018 %
Ordinary NAV (GBP'000) 370,388 369,395 +0.3%
------------- ----------- --------
Ordinary NAV per share 105.8 105.5 +0.3%
------------- ----------- --------
C Share NAV (GBP'000) 297,218 298,752 -0.5%*
------------- ----------- --------
C Share NAV per share 98.4 98.9 -0.5%*
------------- ----------- --------
*The first C share dividend was paid in the quarter, for the
extended period from inception to 31 March 2018; the total dividend
paid was GBP3.4 million, representing 1.13p per C share. An
Ordinary share dividend for the quarter ended 31 March 2018 of
GBP4.4 million, representing 1.25p per Ordinary share was also
paid.
Portfolio NAV
The unaudited Portfolio NAV, disclosed below, reflects an
independent RICS "Red Book" valuation prepared on a portfolio basis
by Jones Lang LaSalle Ltd.
30 June 31 Mar 2018 Increase
Portfolio NAV 2018 %
Ordinary NAV
(GBP'000) 402,600 398,505 +1.0%
-------- ----------- --------
Ordinary NAV
per share 115.0 113.9 +1.0%
-------- ----------- --------
C Share NAV
(GBP'000) 304,223 302,766 +0.5%
-------- ----------- --------
C Share NAV
per share 100.7 100.3 +0.5%
-------- ----------- --------
Individual properties acquired by the Company are often
relatively small in size and as such, benefit from being
incorporated within a larger diversified portfolio. As at 30 June
2018, the Company had acquired 440 properties in 51 transactions,
which includes 89 properties for the benefit of C shareholders.
The Portfolio NAV is intended to provide shareholders with an
indication of the inherent value likely to be obtained by the sale
of the portfolio as a single entity within its existing corporate
structure. It is considered that comparable market transactions
offer both support for the carrying value of the Company's
properties on a portfolio basis and demonstrate the willingness of
acquirers to pay enhanced values for larger portfolios.
Investment Update
During the period, 26 additional properties were acquired and a
number of the existing leases entered into by the Company have seen
their rental income increase as a result of annual indexation,
which taken together has resulted in a run-rate of rental income at
30 June 2018 of GBP31.1 million. This is expected to grow
significantly as the Company moves to full investment over the
coming months which will support the Company's target
dividends.
In the period since IPO, the Company has made the following
investments and created a quality, nationally-based, diversified
portfolio of regulated social housing in England and Wales as well
as partnering with new Housing Associations and care providers in
new local authorities:
Period 31-Mar-17 30-Jun-17 30-Sept-17 31-Dec-17 31-Mar-18 30-Jun-18
Investment (excluding purchase costs) (GBPm) 106 206 284 431 472 508
---------- ---------- ----------- ---------- ---------- ---------
Properties 82 167 282 384 414 440
---------- ---------- ----------- ---------- ---------- ---------
Tenancies 487 1,130 1,820 2,405 2,621 2,845
---------- ---------- ----------- ---------- ---------- ---------
Local Authorities 32 68 82 99 109 123
---------- ---------- ----------- ---------- ---------- ---------
Housing Associations 5 7 10 10 11 12
---------- ---------- ----------- ---------- ---------- ---------
Care Providers 25 42 50 59 64 71
---------- ---------- ----------- ---------- ---------- ---------
C Share Deployment Update
As at the 30 June 2018 the Company had deployed GBP108.5 million
before costs of the C share equity, of which GBP36 million was
invested in the quarter to 30 June 2018.
The Company is confident, based upon the current level of
pipeline and due diligence of its ability to substantially deploy
the net proceeds of the C share in a timely manner consistent with
the terms of the conversion of the C shares into Ordinary shares as
set out in the C share prospectus. This is expected to be supported
by several significant transactions that are targeted to be
announced shortly and which have been subject to ongoing due
diligence. In particular, the Company expects to complete a number
of material acquisitions in the near term with an expected value of
circa GBP100m.
The Company has also continued to expand the network of Housing
Associations and care providers that it interacts with, to further
diversify the portfolio. The Company is well progressed with its
due diligence in respect of several potential new Housing
Association partners that it is seeking to work with during
2018.
Market Update
The need for increased levels of housing of all types and
tenures continues to be a prominent political issue. The government
is continually investigating various initiatives to try and meet
the target of 300,000 new homes per annum that was set earlier in
the year.
The restriction in housing provision and growing demand for
specialist supported housing has resulted in significant and
growing demand for good quality properties tailored to provide
healthcare in the community. A recent report commissioned jointly
by Mencap and Housing LIN expects the need for Specialist Supported
Housing, in particular, to increase by up to 23% by 2027/28.
Against this background Specialist Supported Housing remains
very much in demand with a range of both private and public buyers
seeking to purchase properties and with an element of upward
pressure on pricing as a result. Despite this, the Company utilises
its relationships, existing agreements and buying power to acquire
good quality properties at competitive prices that remain firmly
within the yield range set out at the time of IPO in 2016.
Dividend
The Board has declared a second quarterly dividend in respect of
the Ordinary and C shares for the three months to 30 June 2018 of
1.25 pence per Ordinary share and 0.75 pence per C share. The
dividends will be paid on or around 7 September 2018 to holders on
the respective registers as at 17 August 2018 (the record date) and
the corresponding ex-dividend date being 16 August 2018. The
Ordinary share dividend will be paid as a REIT property income
distribution ("PID"); the C share dividend will be paid as an
ordinary dividend.
Quarterly Fact Sheet
The Company has today published its Fact Sheet for the quarter
to 30 June 2018 and this is available to view on the Company's
website,
http://civitassocialhousing.com/investor-relations/reports-and-publications/.
http://civitassocialhousing.com/investor-relations/reports-and-publications/
For further information, please contact:
Civitas Housing Advisors Limited
Paul Bridge Tel: +44 (0)20 3058 4844
Andrew Dawber Tel: +44 (0)20 3058 4846
Cenkos Securities PLC
Sapna Shah Tel: +44 (0)20 7397 1922
Tom Scrivens Tel: +44 (0)20 7397 1915
Pagefield
Philip Dennis Tel: +44 (0)7947 868206
David Leslie Tel: +44 (0)7584 070274
Notes:
Civitas Social Housing PLC is the first Real Estate Investment
Trust offering pure play exposure to social housing in England and
Wales. The Company is managed by Civitas Housing Advisors Limited.
The Company's Ordinary shares are listed on the premium listing
segment of the Official List of the Financial Conduct Authority and
were admitted to trading on the main market for listed securities
of the London Stock Exchange in November 2016.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCBRGDIGSGBGID
(END) Dow Jones Newswires
August 03, 2018 02:00 ET (06:00 GMT)
Civitas Social Housing (LSE:CSH)
Historical Stock Chart
From Apr 2024 to May 2024
Civitas Social Housing (LSE:CSH)
Historical Stock Chart
From May 2023 to May 2024