Civitas Social Housing Share Discussion Threads

[spoole5] 31/8/2022 10:15

Will just mean less development which is pretty counterproductive

[wskill] 31/8/2022 10:06

Thanks spoole5 its not the end of the world CSH will still be profitable and pay dividends.Although this may cause a change in the rating from Fitch and how this will effect interest cost I have no clue on present borrowing but future loans made be more expensive.

[spoole5] 31/8/2022 09:51

https://www.theguardian.com/society/2022/aug/31/social-housing-rent-rises-to-be-capped-in-england-next-year

[pmusgrove123] 25/8/2022 08:45

Thanks Alanpro1; a sensible look at the sector at last.

[alanpro1] 25/8/2022 07:52

Several references to CSH in this report.fitchratings.com/research/corporate-finance/fitch-affirms-triple-point-social-housing-reit-idr-at-a-senior-secured-at-a-24-08-2022

[pmusgrove123] 24/8/2022 08:58

What did the IC really say? The fundamentals are good and social housing needs the investment so I have bought more of these today.

[spoole5] 24/8/2022 08:05

Need to start buying back.

[alanpro1] 23/8/2022 21:10

"Truss said she wanted to redirect billions of pounds away from the NHS and into local authorities to help fund social care. She said she would direct £13 billion of spending earmarked for Covid backlogs and overhauling social care into local authorities."This problem isn't going away and demand is only on the increase.If the gov wants to get people out of hospitals and into social care, they need to encourage the private sector to take up slack, but having the biggest Specialist Social Housing reit trading at a 35% discount to NAV isn't exactly going to help get institutional funding. The sector needs support.

[spoole5] 23/8/2022 17:37

https://www.investorschronicle.co.uk/news/2022/08/22/the-controversial-reit-model-delivering-homes-for-the-vulnerable/

[williamcooper104] 18/8/2022 16:04

The best performing REITs usually trade at a premium to red book NAV - that means they've got cheap equity capital Likewise perpetual dogs such as BLND and LAND usually look like bargains trading at big discounts to NAV

[spoole5] 18/8/2022 15:16

Well you can pay a 10% premium for SUPR if you like!

[williamcooper104] 18/8/2022 15:13

There's higher degrees of certainty A listed super market trading profitably out of a store is highly likely to pay rent A weak covenant with rent equaling their profit/income is much less likely

[spoole5] 18/8/2022 15:08

No certainty any tenant will pay the rent in any sector

[williamcooper104] 18/8/2022 12:45

The issue is less the payout ratio and more the ability of the underlying tenants to keep paying the rent - there's stress there - but it's not simple as to what happens - that's the reason why you've got the yield If there was no concerns - the share price would be c30-40 percent higher

[rik shaw] 18/8/2022 11:34

All REITS are obliged to distribute 90% or more of their tax exempt income to maintain REIT Status. See info in link below:

[cwa1] 18/8/2022 08:33

XD this morning for 1.425p, pay day 9/9

[gaiusgracchus] 18/8/2022 08:29

I'm new to this one, having bought a starter position. It does strike me that their dividend payout ratio is very high. Does anyone worry about that?

[wskill] 16/8/2022 07:30

May be a chance of a little top up then GS happy with management here they are trying to do the right thing now after past digressions.

[alanpro1] 15/8/2022 22:12

Right at the start of the show it says "while there are good providers of this type of housing...".1% of the property value it leased to MySpace.Also, Civitas focuses on higher acute care patients : "average delivered care hours across the Company's portfolio of 43 hours per person per week."Being the largest investor in this space "The Company is at the forefront of ensuring the sector maintains focus on quality, value for money and robust governance".Where else can these people go? Guardians? hospitals? "Demand for care-based community housing remains high and is projected to increase further still by independent bodies".

[george stobbart] 15/8/2022 21:22

Stock collapses tomorrow because of their exposure to My Space Ponzi scheme

[wskill] 15/8/2022 21:03

Pleased that only 1.1% of assets are with My Space after tonights Panorama expose of assisted housing for vulnerable people, rents seem very decent though £360 per week for a 1 bed unit.

[saltaire111] 10/8/2022 16:36

The management opened the door to Muddy Waters by doing closed deals that allegedly enriched them at shareholders’ expense. There’s regulatory concern over long leases but I’ve taken the view that those concerns can be overlooked on the basis that the services Civitas provide are essential services to the public sector. Where else will the public sector go? In some respects, Muddy Waters has done us a favour in that we can now buy these shares on the cheap!

Salty.

[williamcooper104] 10/8/2022 13:00

Check out MPW in the US - same story

[spoole5] 10/8/2022 12:50

All property trusts have tennant risks, not quite sure why these have been singled out so brutally.

[cwa1] 10/8/2022 11:53

courtesy of davebowler from elsewhere:-

Liberum on Civitas Social Housing

2.7% NAV TR in Q2 2022

Mkt Cap £500m | Share price 81.8p | Prem/(disc) -26.9% | Div yield 7.0%

Event

Civitas Social Housing’s NAV per share of 111.9p, as at 30 June 2022, represented a NAV total return of 2.7% in Q2 2022. The 1.4% increase in NAV per share reflected lease indexation in the period, partly offset by capital expenditure on some of CSH's properties. The other impact on NAV in the period was attributable to share buybacks (+0.06p) impact. The net initial yield of the portfolio reduced marginally to 5.25% (Mar-22: 5.28 %).

CSH completed one acquisition in Q2, located in Wisbech, Cambridgeshire, for £0.6m. The asset is immediately income generating and subject to indexed leases with Chrysalis, an existing CSH counterparty.

Liberum view

The quarterly update is broadly in line with expectations. A key catalyst for the shares continues to be the regulatory clause CSH has been working on, in partnership with its approved providers, to help facilitate their achievement of regulatory compliance. CSH trades on a 27% discount to NAV and offer a CPI-linked, 7.0% dividend yield (based on the FY 23 target of at least 5.7p)