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Share Name Share Symbol Market Type Share ISIN Share Description
Civitas Social Housing Plc LSE:CSH London Ordinary Share GB00BD8HBD32 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  0.60 1.12% 54.30 500,973 12:01:35
Bid Price Offer Price High Price Low Price Open Price
54.00 54.40 54.70 53.40 54.40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts 51.64 44.75 7.23 7.5 332
Last Trade Time Trade Type Trade Size Trade Price Currency
12:07:00 O 20,000 54.245 GBX

Civitas Social Housing (CSH) Latest News

More Civitas Social Housing News
Civitas Social Housing Investors    Civitas Social Housing Takeover Rumours

Civitas Social Housing (CSH) Discussions and Chat

Civitas Social Housing (CSH) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
12:07:0154.2520,00010,849.00O
12:02:0454.391,392757.07O
12:00:4654.17189.75O
11:57:3654.30688373.58AT
11:55:2654.304,0602,204.58AT
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Civitas Social Housing (CSH) Top Chat Posts

Top Posts
Posted at 27/1/2023 11:18 by lucydesouza
Up4itt, CSH agreed with certain customers to introduce a new clause to their leases - this was in Q2/Q3 last year. The RSH liked the new clause because it increased the "sharing of risk" between CSH and its customers. I think this initiative stemmed from the RSH's concerns over the financial health of the RPs. JLL (responsible for all CSH's valuations) said that the amendment doesn't impact the value of the leases to CSH, despite it increasing the risk that CSH is exposed to (!). However, last I heard, it still needed approval by CSH's lenders, and the language used in the interim results appears to downgrade the likelihood of the new clauses roll out.

It would be nice to see CSH clarify whether this has indeed been approved by the lenders and share the actual language of the new clause. Otherwise, one might jump to the conclusion that the lenders have rejected the amendment and that CSH is caught between the demands of the RSH and the rights of its lenders.

Posted at 25/1/2023 16:39 by lucydesouza
Up4itt: "CSH and SOHO’s share prices continue to fall today, but on comparatively low volume."

Narrator: CSH traded 2.2 million shares today, about 20% more than the average daily volume.

Posted at 25/1/2023 15:12 by up4itt
Lucy… well, I’m glad we agree that all this is in the public domain, in one way or another. And I think we would also agree that these are not new points: they date back at least to 2021 (Shadowfall) and further back to 2018 (when concerns were raised by the Regulator of Social Housing). Those points were addressed by Civitas’ “Responses to Shareholder Questions" (October 2021) a 37-page document which I am sure you have read.

CSH and SOHO’s share prices continue to fall today, but on comparatively low volume. This is most likely panic selling by PIs, who have - unfortunately for them - been spooked by HOME’s problems and by what I consider to be unfounded fears of contagion and gloom about the sector and the business model. 93.6% of CSH shares are held by Institutions and there as yet no signs of any significant sales by IIs (unlike Q3/Q4 of 2021 when the shares were shorted by Shadowfall and others).

Posted at 25/1/2023 04:58 by up4itt
Lucy presents the information about Herleva / SHO like a dark little secret that has been exposed. In fact, the matter was openly reported by CSH in its 2022 accounts (page 104) as follows:

“During the year the Group acquired a property holding company from Herleva Properties Limited which held assets totalling £8,611,000. Herleva Properties Limited is a subsidiary of Specialist Healthcare Operations Limited (“SHO”). Andrew Dawber and Tom Pridmore (both directors of the Investment Adviser) are each 14.99% shareholders in SHO. They are not directors of SHO and have no operational role in that business. SHO does not meet the definition of a related party under IAS 24”.

(Note: IAS 24.11 states that two entities are deemed not to be related simply because they have a director or key manager in common.)

Regardless of what one might think of this and the other transactions mentioned in Lucy’s latest comment, they are all in the public domain and are in line with the relevant rules and standards. I would think that, having been the victim of a short attack in 2021, CSH will now be doubly careful to ensure that their future conduct is above reproach.

William illustrates his tendency to confuse ropes and snakes by meandering off from CSH into a discussion about HOME. I believe that the market is currently subject the same confusion, hence the weakness of the share price of CSH. Of course, the market may remain irrational for longer than is reasonable, but rational investors would be wise not to be taken in by this unjustified and no doubt transient negativity.

Posted at 24/1/2023 17:56 by lucydesouza
"Round tripping" is when a company sends money to its customers that then comes back as reported income. In the case of Fairhome, some of the profits from the transactions with CSH were lent to a related party of Fairhome, called Westmoreland. And Westmoreland took on the leases with CSH. The money that Fairhome lent to Westmoreland helped pay the rent to CSH.

That was a while ago, of course, but the opportunity for a similar set up still exists, at least in FY2022. For instance, CSH acquired properties from Herleva last year. Herleva is/was indirectly owned by SHO (the Isle of Man holdco that is part owned by CSH insiders). SHO also owns TLC Care which leases/subleases CSH properties.

In a separate transaction last year, CSH sold the operating business of CPI Care to a subsidiary of SHO, at quite a low earnings multiple.

So, you still have the same opportunity for profits from these transactions to end up coming back to CSH as rental income.

CSH spent as much on acquisitions in FY2022 as it earned in operating cash flow, and at least half of its acquisitions involved some sort of related party transaction. In effect, broadly speaking, CSH borrowed money to pay the dividend having spent half its operating cash flows on related party transactions.

I'm not saying that CSH are engaged in "round tripping" in the traditional sense. But it is a matter of public record that some of the profits earned by Fairhome ended up coming back to CSH as rent from Westmoreland. And the SHO structure that has profited from transactions with CSH is also paying rent to CSH through TLC Care.

Posted at 18/1/2023 14:59 by lucydesouza
The scheme: Flip the property into the REIT at a massive profit, round-trip some of the gains through the RPs as income. (RP stands for "regulated provider" but could also be "related party"). This is why so many of CSH's transactions are related party - they need to keep feeding their customers. Note: The Herleva Properties and CPI Care transactions in 2022FY (which represented half of CSH's acquisitions) effectively saw cash and/or an operating business taken over by customers of CSH. Herleva and CPI Care are part of the infamous Specialist Healthcare Operations structure. That structure includes TLC Care, which sublets some of the properties owned by CSH. In other words, the Herleva and CPI Care transactions effectively transferred value to customers of CSH, which in turn are controlled by Pridmore and his associates.

This game of musical chairs will eventually stop when the customers of CSH become unable to pay the rent. How long will that be? Have they fired five bullets, or six? :)

Posted at 20/12/2022 09:36 by up4itt
The stuff about Fairhome and Westmoreland was the subject of an investigation by the Social Housing Regulator who published their conclusions in 2018. The facts have been in the public domain for at least 4 years and I’m not sure that there is anything new in what Lucy is alleging.

Lucy only posts on Civitas (and now on Victoria) and has tended to do so when Shadowfall and other shorters are active. There is circumstantial evidence, therefore, that she has an agenda. I have no problem with that, but it’s worth knowing, although that does not in itself nullify the value of her research.

The Civitas share price has fallen sharply since October, but so have, to more or less the same extent, the share prices of other REITS unrelated to social housing. This suggests that the falls reflect the macro environment and higher interest rates and are not specifically related to the business model of Civitas and Triple Point. I suspect that the unique issues faced by HOME may have leached, unjustifiably, into perceptions of Civitas and Triple Point.

All investments involve risk, but investors in Civitas and Triple Point are compensated for this risk by the low NAV and the high dividend.

Full disclosure: I hold both CSH and SOHO. Together they comprise about 16% of my REITS holdings which in turn represent about 15% of my total UK share portfolio. I am well under water with both CSH and SOHO, and had not expected them to fall this far, but plan to hold for income and long-term recovery and may well add in the coming months on any further weakness.

Posted at 16/12/2022 10:29 by lucydesouza
The yield is, on the surface, highly attractive. But I think there's a good reason for this.

The history of CSH is one where massive profits were earned (not by CSH) through properties being flipped into the REIT at huge mark ups, with some of those profits coming back to CSH in rental payments through the RPs. Fairhome/Westmoreland is the easiest scheme to spot and if you take the time, you can follow it through on Companies House and the Land Registry. Filings on the Jersey Trade Registry are relevant as well.

Fairhome (a "property developer") would set up a shell company, which then bought a property. The shell company would then be sold to CSH at a big uplift in value generating a huge profit for Fairhome. This was repeated dozens of times generating tens of millions of profits for Fairhome. Some of those profits were loaned to Westmoreland, which became the tenant on the property taking on the lease with CSH. So, in effect, some of the profits from the flip were used to pay the rent on the property. But a big chunk of the profits were paid out in dividends by Fairhome or used to service steep interest payments on a "deep discount bond" that Fairhome had issued. And here's the kicker - Fairhome was financed by an entity called Beaufort, in Jersey. And who ran that vehicle? That's right: Tom Pridmore and his associates.

That was just one of several schemes used to build the CSH portfolio.

It's in that context (and many other related party transactions) that you have to assess CSH. It's easy to rely on this being an audited, transparent, publicly traded REIT, with the valuation fully and independently assessed by the mighty JLL, no less. But the valuations are all entirely dependent on the rental income, rather than a true a mark-to-market on the properties. In effect, this is mark-to-model with the key input in the model being the rental income.

And if you think it's "all in the past", check this out: In the year to March 2022, at least half of of CSH's new property acquisitions involved a related party transaction of one sort or another... and those related parties are the same shrewd chaps involved with Beaufort.

This is why the yield is high.

Posted at 15/9/2022 07:14 by cwa1
This is a very strange concept, where the CSH share price appears NOT to be going down as is normal. Do I have a computer malfunction, or can everybody else see it?

Possibly if I switch the laptop off and then back on again, or leave it for a few days, normal service weill be resumed?

:-)

Posted at 10/8/2022 10:53 by cwa1
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)

Civitas Social Housing share price data is direct from the London Stock Exchange
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