Civitas Social Housing Share Discussion Threads

[spoole5] 01/7/2022 11:56

This has to be vulnerable at these levels now

[pmusgrove123] 01/7/2022 11:49

Found this on page 17 which gives me greater confidence:

The Company has sought and obtained formal written
confirmation from valuers that the inclusion of the clause
within the Company’s new and existing leases will not of
itself cause a diminution in the value of those leases or in
the underlying assets. Indeed, the Company considers that
enhanced regulatory alignment would be consistent with
asset appreciation over the medium term.

[pmusgrove123] 01/7/2022 11:44

I cannot find how many of the leases have a 4% cap on them. I concur with 2sporrans; an issue may be the cost of repairs and maintenance if this cap is a large % of the rent roll.

[2sporrans] 01/7/2022 11:33

Mulling over adding to my small foot-in-door holding [bought @84p].

The EPRA earnings came in 2% lower than last year. [EPS similar drop].

While the profit after tax actually compared well - £44,754,000 v £36,075,000 - this was pared down to the EPRA figure of £29,810,000; mostly due to to a write down of property assets by £12,269,000. [Last year the write down was 'only' £5,511,000]
How one feels about that?
Dunno.

The net cash flow from ops seems ok; £37.5mn v £26.1mn last year.
That's the net figure, the gross is 37.5 v 36.1.; striking difference.

Then again, the divi. cover still looks to be a tad under par.:
"EPRA run-rate dividend cover of 97% (actual 87%) as at 31 March 2022."
Yet the divi target raised for 2022-23 to 5.7p v 5.55p 2021-22.

Suppose the business is pretty well insulated against recession; the state funding looks firm enough.
But.
There isn't a lot of margin here, if costs do jack up, for whatever reasons; the limits and lags to indexed rent rises may prove critical.

[aspringo] 01/7/2022 10:13

I've stopped buying them all individually now. Got loads of them still but found BMO managed portfolio was replicating most of my holdings except JARA, so will keep topping that up, alongside an alternatives fund that covers this and infrastructure. So my holding is increasing in it but I'm letting them make the decision on it.Good luck, j think we'll all need it over the next year.

[spoole5] 01/7/2022 10:11

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[spoole5] 01/7/2022 10:00

Bought in last thing yesterday, as always the falling knife.....!!

[aspringo] 01/7/2022 09:56

Agree spoole, I'd buy more if I didn't have too many already.

[spoole5] 01/7/2022 09:28

Where is the floor here?

[hindsight] 30/5/2022 11:56

From the quotedresearch, answered one of my questions regarding cap issue
Across CSH’s portfolio, 27% of rents benefit from indexation at CPI+1%, with the balance of 73% at CPI. Additionally, 31% of rents are subject to a cap of 4%.

[melloteam] 22/5/2022 12:28

Mello2022, the popular three-day Investor event takes place on 24TH-26TH MAY at the Clayton Hotel & Conference Centre, Chiswick, W4. The breakdown of the three days is as follows:

Tuesday 24th May, 9am - 6pm - Mello Investment Trusts and Funds (WE ARE GIVING AWAY 20 FREE TICKETS TO THE TRUST AND FUNDS EVENT - THE FREE CODE IS FIRST20TF)

Wednesday 25th & Thursday 26th May, 9am - 6pm - Smaller Growth and Mid-Cap Companies (Tickets for 1 day are £115 and tickets for 2 days are £189. To get 50% off, use code MMTADVFN50).

Just to let shareholders and prospective investors know that CIVITAS SOCIAL HOUSING will be among the Trusts and Funds attending. There will also be keynote speakers such as Lord John Lee, Andy Brough, Rosemary Banyard, Clarke Carlisle and Gervais Williams.

For more information, please visit the event webpage:

[alanpro1] 17/5/2022 07:48

Why supported housing is a good investmentMeet the landlords who want to help society prosper while making an inflation-proof profithxxps://www.thetimes.co.uk/article/why-supported-housing-is-a-good-investment-frxf0j7mq

[melloteam] 15/5/2022 22:19

Mello2022, the popular three-day Investor event takes place on 24TH-26TH MAY at the Clayton Hotel & Conference Centre, Chiswick, W4. The breakdown of the three days is as follows:

Tuesday 24th May, 9am - 6pm - Mello Investment Trusts and Funds (WE ARE GIVING AWAY 20 FREE TICKETS TO THE TRUST AND FUNDS EVENT - THE FREE CODE IS FIRST20TF)

Wednesday 25th & Thursday 26th May, 9am - 6pm - Smaller Growth and Mid-Cap Companies (Tickets for 1 day are £115 and tickets for 2 days are £189. To get 50% off, use code MMTADVFN50).

Just to let shareholders and prospective investors know that CIVITAS SOCIAL HOUSING plc will be among the Trusts and Funds attending. There will also be keynote speakers such as Lord John Lee, Andy Brough, Rosemary Banyard, Clarke Carlisle and Gervais Williams.

For more information, please visit the event webpage:

[killing_time] 11/5/2022 08:24

Quarterly NAV up to 110.3p

New dividend target of 5.7p going forward.

[theprovosts] 25/3/2022 15:50

From memory, capped at circa 4%. Solid results in SOHO today. When is the market going to wake up that this is an inflation protected 6%+ yield. Buy em low sell em high.

[hindsight] 23/3/2022 11:13

Does anyone know
1 If the indexation stated have a cap ?
"It should be noted that all leases benefit from either CPI orCPI+1 indexation"
2 Why the buybacks have stopped ?

[cwa1] 17/2/2022 11:57

Edison Research on CSH:-



Valuation: Further strong potential

Dividends are backed by stable income, uncorrelated with the wider economy, with good inflation-linked growth prospects. Civitas targets aggregate FY22 DPS of 5.55p, which represents an attractive 6.3% yield. Meanwhile, the shares trade at a c 19% discount to Q322 NAV (average discount since IPO 4%).

[pmusgrove123] 15/2/2022 12:54

The Regulator for Social housing (RSH) to my knowledge has never had to deal with a HA that went into administration. They have in the past taken steps to ensure that this would not happen as if one HA goes under the remainder would suffer from increased financing costs which would damage the whole sector and drastically reduce the number of new homes being built. The best/ worse example to date was Cosmopolitan that was rescued in 2013/14. I am confident that the present leases would stand if any of Civitas backed HAs were taken over by another HA so cannot see why their shares are not fully valued around the 108p mark. I am sticking with them and taking the dividends; may even increase my holding.

[george stobart] 15/2/2022 12:53

People are pulling money out Civitas to invest in the IPOs of BMO Responsible Housing and the IPO of GCP Co-Living REIT

Better business models

[campervan1] 15/2/2022 12:23

So no new news that I can find, nor new short interest, yet this erratic price movement. Seriously tempting yield, might be tempted to add, but perhaps wait a bit in case something comes out of the wood work. Could be even better entry point ex div day!

[calton1] 15/2/2022 11:51

thanks pmusgrove - unlike most investors you obviously know about the third sector.
The key question for CSH would be what happens to arrears + whether Regulator has powers to disclaim leases like an administrator.
The other big point must surely be: apart from where they are currently housed what other suitable arrangements are there for the occupants ?

[pmusgrove123] 15/2/2022 11:31

Housing Associations are rather like energy companies; if the regulator decides that they need assistance or the become financially unviable the regulator finds a larger HA to take over their stock. This has happened a number of times in the past.

[calton1] 15/2/2022 11:23

Re the React News article (the best on CSH yet by far) is the real point not that were a housing association lessee to go under, the occupants who are in receipt of public funds would still need housing.Some other body would be appointed as their successor to continue the lease in their place?
Also, we are told there is not a lots of suitable housing of this type about - is that correct?

By the way does anyone know details of recent share activity on the path downwards?

[cwa1] 15/2/2022 10:29

This is certainly weak of late. Has anyone heard anything of significance? Shorters having a go again?

[hindsight] 15/2/2022 09:12

Does anyone know if the CPI indexed rents have a cap ?