Company Announcements

NAV, Dividend & Trading Update

Source: RNS
RNS Number : 7754H
Civitas Social Housing PLC
06 August 2021

                                                                                                                                                           6 August 2021



("Civitas" or the "Company")


Net Asset Values, Dividend Declaration and

Positive Trading and Market Update



Civitas Social Housing PLC ("Civitas" or the "Company") is pleased to announce its quarterly net asset value ("NAV") as at 30 June 2021, a dividend declaration and to provide a positive trading and market update.




·    Robust financial performance in line with expectations

·    Rents received as normal with no COVID-19 impact during the quarter

·    IFRS NAV per share of 108.42p resilient as expected (31 March 2021: 108.30p)

·    1.3875p quarterly dividend declared in line with new full year target of 5.55p

·    28 additional properties acquired for £22 million

·    M&G facility now invested or reserved for existing pipeline projects

·    Strong and diverse pipeline of new and accretive investment opportunities being considered



Trading and Market Update

The Company continues to perform in line with expectations and c.99% of rents due have been collected as normal and unaffected by COVID-19.


The Company is pleased to announce a slightly increased NAV (reflecting the historic low level of CPI inflation) and an increased quarterly dividend of 1.3875p as targeted, consistent with the stated objective of paying a total dividend of 5.55p for the year ending 31 March 2022.


Following the announcement of the national framework agreement with E.ON to further improve the energy efficiency of our properties and reduce maintenance costs and energy bills, we are pleased to note that detailed planning work has now commenced on the initial phase of 55 properties which will have a range of measures undertaken to reduce carbon emissions.


The pandemic has further reinforced the vital role that housing with care plays in society, enabling the most vulnerable to live in safe and secure homes in the community while continuing to receive the high-quality bespoke care provision that they need.


The Company once again offers its thanks and support to all its partners and acknowledges their excellent performance throughout the period.





Net Asset Values ("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").










Ordinary NAV (£'000)



Ordinary NAV per share (pence)





The portfolio, based on individual asset valuations, has been valued overall at 30 June 2021 at an average Net Initial Yield of 5.25% (31 March 2021: 5.26%) 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 growth in IFRS NAV reflects the contribution from the indexation of leases in the period, (based on the historic low level of CPI inflation) and the cost of modest 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.


In the period to 30 June 2021, a dividend of 1.35p per Ordinary Share was declared, as targeted, on 11 May 2021 in respect of the quarter ended 31 March 2021 and paid on 11 June 2021, amounting to £8.4 million.



Portfolio NAV

The unaudited Portfolio NAV, disclosed below, reflects an independent RICS "Red Book" valuation prepared on a portfolio basis by JLL.









Ordinary NAV (£'000)



Ordinary NAV per share (pence)




The portfolio, as a single entity, has been valued at 30 June 2021 at 5.06% Net Initial Yield (31 March 2021: 5.06%) reflecting the enhanced value from the aggregation of individual properties into a single portfolio company and the positive effects of the stamp duty adjustment noted below.


The JLL portfolio valuation incorporates two additional assumptions when considering Red Book valuation. Firstly, that the assumed theoretical sale costs (from Civitas to a subsequent buyer) are reduced as the portfolio is assumed to be sold (with all properties within SPVs) with stamp duty being charged at 0.5% on the sale of shares in SPVs as opposed to 5.0% for the sale of each underlying property.


Secondly, that the portfolio is sold in its entirety rather than as individual properties (making it better suited to a wider group of institutional buyers) and so attracting more competitive pricing. This assumption is supported by transactional evidence that JLL has observed in the market.



Dividend Declaration

The Board has today declared a first quarterly dividend for the period from 1 April 2021 to 30 June 2021 of 1.3875p per Ordinary Share as part of the increased stated dividend target of 5.55p per Ordinary Share for the year ending 31 March 2022.


The dividend will be paid on or around 10 September 2021 to holders on the register as at 20 August 2021 (the record date) with the corresponding ex-dividend date being 19 August 2021. The dividend will be paid as a REIT property income distribution ("PID").


The increased target dividend for the year ending 31 March 2022 reflects both the strong underlying cash generation that the Company continues to achieve and the Board's positive view of the Company's prospects in the current financial year at the present time.



Investment and Pipeline Update

During the quarter to 30 June 2021, the Company completed the previously announced acquisition of 15 supported living and care facilities in South Wales for a total consideration of £10.9 million, 10 supported living properties across Hertfordshire, Essex, Suffolk and Wales for a total consideration of £8.6 million and three supported living properties (with one exchanged) located in the East of England for a total consideration of £2.5 million (all excluding purchase costs).


These properties provide in total 96 beds for individuals with learning disabilities and mental health care needs with dedicated facilities bespoke to each property to develop and enhance independent living skills such as cooking, numeracy and literacy.


The Company and Investment Adviser are in active discussions over the potential acquisition of a range of high-quality existing and new build properties to be acquired at completion without the need for forward financing.  With limited uncommitted capital resources, the Company is continuing to evaluate options, including raising equity, to fund further investments to enhance shareholder returns.



The number and quality of these investment opportunities reflects many of the unique strategic relationships that have been established by the Company over recent years, in particular with leading specialist care providers as well as with several new significant counterparties based on the recent shareholder approval for a broadening of the Company's investment policy.



Quarterly Factsheet

The Company has today published its Factsheet for the quarter to 30 June 2021 and this is available to view on the Company's website.





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





Helen Tarbet / Henry Wilson            

Tel: +44 (0) 20 7466 5000

Hannah Ratcliff / George Beale




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. So far, Civitas has completed more than 120 individual transactions to build the largest portfolio of its kind that has been independently valued at £915.6million (31 March 2021). CSH now provides homes for 4,391 working age adults with long-term care needs, in 648 bespoke properties that are supported by 119 specialist care providers, 16 approved providers and working with over 178 individual local authorities.



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