Civitas Social Housing PLC Net Asset Value(s) (3891E)

TIDMCSH

RNS Number : 3891E

Civitas Social Housing PLC

08 February 2018

9(th) February 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

Net Asset Value, Dividend Declaration and Investment Update

The Board of Civitas Social Housing PLC ("Board"), the first London listed REIT dedicated to investing into regulated social housing in England and Wales, is pleased to announce its portfolio net asset value ("Net Asset Value" or NAV") per ordinary and C share as at 31(st) December 2017. In addition, the Board is pleased to announce the latest dividend on the ordinary shares and provide an update on the continued success in the deployment of capital.

Net Asset Value

Ordinary Shares

As at 31(st) December 2017, the unaudited portfolio NAV per ordinary share was 112.8 pence (30 September: 109.6 pence(1) ) reflecting an independent RICS "Red Book" valuation prepared on a portfolio basis by Jones Lang LaSalle Ltd.

The movement in NAV attributable to the ordinary shares since 30(th) September 2017 is as follows:

 
                                 GBP 
 Net Asset Value as at 30(th) 
  September 2017(2)              383,599,659(1) 
 Operating profits               3,112,659 
 Capital appreciation            10,897,477 
 Dividend paid                   (2,625,000) 
 Net Asset Value as at 31(st) 
  December 2017(2)               394,984,795 
 

C Shares

As at 31(st) December 2017, the unaudited portfolio NAV per C share was 98.4 pence (14 November: 98.0 pence) reflecting an independent RICS "Red Book" valuation prepared on a portfolio basis by Jones Lang LaSalle Ltd.

The movement in NAV since admission of the C shares on 14(th) November 2017 is as follows:

 
                                 GBP 
 Net Asset Value as at 14(th) 
  November 2017                  295,960,000 
 Operating losses                (336,019) 
 Capital appreciation            1,485,950 
 Net Asset Value as at 31(st) 
  December 2017(2)               297,109,931 
 

(1)

This NAV has been

restated from the figure in the 18(th) October 2017 announcement to correct a clerical error

(2)

Based on portfolio valuation

Commentary

The Company publishes a quarterly portfolio NAV, reflecting a portfolio-based valuation, and a semi-annual IFRS NAV (at the time of the Company's interim and full year results) reflecting a "sum of the parts" valuation, in each case with the investment properties subject to independent valuation by the Company's appointed property valuers. This provides the most detailed range of valuation information.

The growth in the underlying asset value of the investment properties is driven by a number of factors. With an extensive network of relationships, built over many years, and committed supply agreements, the Company is able to secure properties on attractive terms that meet its investment objectives. These properties are typically off-market purchases and often not available to other buyers, which generates growth in asset values when set against normal market pricing. The Company has secured a leading position in the social housing sector and now enjoys significant scale with exposure across more than 100 local authority areas, 2,469 underlying tenants and over GBP440 million (excluding purchase costs) of acquisitions.

The Company is also committed to high-quality social outcomes which is reflected in both its community-based activities, its independent social impact reporting and the manner in which it conducts its investment activities. This has led to investment opportunities being offered to the Company as a sole preferred purchaser. The Company has demonstrated an ability to undertake property acquisitions in a professional and efficient manner, with high standards of governance/diligence and this has proven to be attractive to professional and socially based vendors.

The ability to acquire homes at attractive valuations is reflected in the asset growth of both the ordinary shares and the C shares and is accounted for in both the portfolio net asset value and the IFRS net asset value.

Dividend Declaration

The Board has today declared a fourth quarterly dividend in respect of the ordinary shares for the three months to 31(st) December 2017 of 0.75 pence per ordinary share, payable on or around 9(th) March 2018 to ordinary shareholders on the register on 23(rd) February 2018. The ex-dividend date will be 22(nd) February 2018. The dividend will be paid as a REIT property income distribution (PID).

The Company has met its initial dividend target set at IPO and has declared total dividends of 3.0 pence per ordinary share from IPO to the period ended 31(st) December 2017 and is targeting a dividend of 5.0 pence per ordinary share in respect of the calendar year from 1(st) January 2018 to 31(st) December 2018(3) .

The Company expects to declare its first dividend in respect of the C shares in relation to the period ending 31(st) March 2018. (3)

The target dividend is a target only and not a forecast. There can be no assurance that the target will be met and it should not be taken as an indication of the Company's expected or actual future results

Investment Update

In the period since IPO to 8(th) February 2018 the Company has made the following investments and created a nationally based, diversified portfolio of regulated social housing in England and Wales.

 
Period                 31-Mar-17  30-Jun-17  30-Sept-17  31-Dec-17  8-Feb-18 
---------------------  ---------  ---------  ----------  ---------  -------- 
Investment 
 (excluding 
 purchase costs) 
 (GBPm)                   106        206        284         431       440 
---------------------  ---------  ---------  ----------  ---------  -------- 
Properties                82         167        282         384       392 
---------------------  ---------  ---------  ----------  ---------  -------- 
Tenancies                 487       1,130      1,820       2,405     2,469 
---------------------  ---------  ---------  ----------  ---------  -------- 
Local Authorities         32         68          82         99        102 
---------------------  ---------  ---------  ----------  ---------  -------- 
Housing Associations       5          7          10         10         11 
---------------------  ---------  ---------  ----------  ---------  -------- 
Care Providers            25         42          50         59         61 
---------------------  ---------  ---------  ----------  ---------  -------- 
 

The completed investments represent the full deployment of the IPO net proceeds. It is expected that a final investment will be made shortly at the time of securing the final tranche of debt finance for the benefit of the ordinary shares. As at 8(th) February 2018, GBP41 million (before purchase costs) has been invested for the benefit of the C shares.

The Company is pleased to note the total investment of GBP440 million (before purchase costs) as at 8(th) February 2018 which reflects the breadth of opportunity and sector relationships that Civitas Housing Advisers Limited, the Investment Advisor has developed on behalf of the Company.

Quarterly Fact Sheet

The Company has today published its Fact Sheet for the quarter to 31(st) December 2017 and this is available to view on the Company's web site, http://civitassocialhousing.com/investor-relations/reports-and-publications/.

For further information, please contact:

Civitas Housing Advisors Limited

   Paul Bridge       Tel: [phone] 

Andrew Dawber Tel: [phone]

Cenkos Securities PLC

   Sapna Shah      Tel: [phone] 
   Tom Scrivens     Tel: [phone] 

Pagefield

   Philip Dennis     Tel: [phone] 
   David Leslie       Tel: [phone] 

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 company news service from the London Stock Exchange

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February 09, 2018 02:00 ET (07:00 GMT)