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
  1.00 1.23% 82.20 1,295,067 16:35:03
Bid Price Offer Price High Price Low Price Open Price
82.30 82.60 82.80 81.90 82.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Real Estate Investment Trusts 49.02 36.08 5.80 14.2 502
Last Trade Time Trade Type Trade Size Trade Price Currency
18:02:29 O 12,372 82.306 GBX

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Trade Time Trade Price Trade Size Trade Value Trade Type
2022-06-28 17:02:3682.3112,37210,182.90O
2022-06-28 16:53:2882.266,4005,264.70O
2022-06-28 16:53:0182.202,4171,986.77O
2022-06-28 16:19:1382.50135111.38O
2022-06-28 16:10:4782.612,0001,652.12O
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Civitas Social Housing (CSH) Top Chat Posts

Civitas Social Housing Daily Update: Civitas Social Housing Plc is listed in the Real Estate Investment Trusts sector of the London Stock Exchange with ticker CSH. The last closing price for Civitas Social Housing was 81.20p.
Civitas Social Housing Plc has a 4 week average price of 79.20p and a 12 week average price of 79.20p.
The 1 year high share price is 120.80p while the 1 year low share price is currently 79.20p.
There are currently 610,986,380 shares in issue and the average daily traded volume is 1,327,147 shares. The market capitalisation of Civitas Social Housing Plc is £502,230,804.36.
cwa1: 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%).
calton1: 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 ?
calton1: 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?
apollocreed1: @saltaire111-Good news but unfortunately it hasn't helped the share price.
alanpro1: Surprised this has been manipulated so low. Order book constantly being suppressed by tiny 100 share sales on the offer to narrow the spread and put pressure on the bid. Usual shorter tactics.NAV if purchased as a complete entity is circa 120p. Wouldn't surprise me if a bid came at some point. The valuations aren't stretched, your only looking at around £180k per single occupant swelling at todays price. Good price at present.
williamcooper104: Good article from the ever excellent React News on CSH Earlier this month, ShadowFall, the hedge fund that launched a stinging public attack on Civitas Social Housing in the autumn, scaled back its short position, but others remain.Just after ShadowFall's position dipped under the threshold below which it no longer has to disclose its position publicly with the Financial Conduct Authority, another short seller popped up. Lombard Odier has built up a short position representing 0.52% of Civitas' shares.So how much substance is there to the case against the REIT, and what are the repercussions for others in the sector? Here we take a look at the key questions.How serious are the governance questions?Much of ShadowFall's initial letter to shareholders focused the disclosure of property deals dating back to 2018. Civitas bought a care homes group and kept ownership of the properties and then sold the operating business to a company that was part-owned by Civitas directors, but this was not disclosed to shareholders. The directors' economic interest in the company was not significant enough for them to be obliged to disclose their involvement, but some still feel that they should have done.Lord Oakeshott, director of the Value and Indexed Property Income Trust, told the Sunday Times that he was "appalled" and had decided to sell the trust's £2.2m stake in the REIT.Part of Civitas' argument for not providing fuller disclosure was that the deal was innovative and that it did not want rivals to cotton on because it was benefiting from "a competitive first mover advantage". There is reason to question this. Are opco/propco deals where the operating business is separated from the real estate really so innovative that Civitas would want to keep rivals in the dark? And even if they are, the basic nuts and bolts of the deal were disclosed in the 2020 annual report. What wasn't disclosed was that Civitas directors had a stake in the operating business.What about the financial outlook for Civitas?Irrespective of the rights and wrongs, questions of disclosure and transparency have little impact on financial performance. On the face of it, there's nothing of alarm in the headline numbers from Civitas' recent financial results. Since IPO in 2016, the REIT has delivered a cumulative total return of almost 30%, with the latest half-year results earlier this month showing little change in NAV or earnings per share.But ShadowFall argues that there is trouble ahead. It warned in its first open letter that much of the REIT's rental income and dividend were at risk, arguing that the housing associations it works with are being propped up with developer loans, rent support and lease incentives.Not all of its arguments are that convincing. The hedge fund argued that lease incentives were rising, accounting for 23% of Civitas' annual rent in its last financial year, but £10m of the £11.2m that it based this figure on comprised a payment made by Civitas as a second instalment for the purchase of new build property. This is classed as a lease incentive for accounting reasons, but is really nothing of the sort.Does this mean that there are no good reasons to question Civitas' financial performance?This is certainly the conclusion Civitas' management would like investors to draw."A lot of what was put out has not proven to be correct," says Civitas Investment Management director Andrew Dauber. "It's quite a frustrating process because short sellers don't have the same restrictions on them that we have."And the very fact that ShadowFall has scaled back its short position would suggest that the hedge fund does not believe that Civitas' shares have much further to fall. The shares were trading at around 105p when ShadowFall's position became public at the end of August and then slumped to a low of 85.2p following publication of the hedge fund's highly critical reports on the REIT, before recovering to 93p when the position dropped below 0.5%.Plot, Text, NumberCivitas' share price had been falling when ShadowFall's short position became public and then fell further following publication of its reportsCivitas directors have also signaled their confidence in the outlook this week by buying shares in the REIT. However, there are still some significant issues. Civitas' latest results show its dividend cover is just 87.5% – although this rises to just over 100% assuming that the REIT invests much of the proceeds of a new debt facility. At the very least, this means that the REIT could be vulnerable in the event that rental income falls.How likely is it that income would drop and should others in the sector be worried?This is the big question for investors. The bear case is that rents are unsustainably high and that rental income is at risk from regulatory intervention or from housing associations failing financially. The public statements from the Regulator of Social Housing do not bode well for Civitas or others in the sector. In a 2019 report, it said it was "hard to see" how a provider of supported housing funded by "long-term leases and subsequent tight margins can meet the requirements of the governance and financial viability standard".Fiona MacGregor, Regulator of Social Housing CEO, takes a dim view of the long-term lease funding modelThe danger, therefore, is that the regulator would intervene to force changes that would hit rental income levels and make supported housing properties less valuable. There is no saying when this could happen, what form it would take or even whether it will, but it remains a threat.Since the 2019 report, there has certainly been no let-up from the regulator, which continues to issue damning judgements on many housing associations funded with long-term leases, including providers that account for a significant share of Civitas' rent roll.In one of the latest examples, the regulator found Aukland Home Solutions to be "non-compliant", citing various concerns about its governance and financial viability. Aukland accounts for 16.9% of Civitas' rent roll and the regulatory judgement raises questions about the effectiveness of The Social Housing Family CIC, a non-profit organisation set up by Civitas to help providers holding Civitas leases to improve their standards. In 2019, Aukland became the first housing association to join The Social Housing Family CIC.The other danger is of financial failure among the housing associations that Civitas works with. Going by the regulator's judgements, it is a very real possibility that providers that hold Civitas leases will run into financial difficulty at some stage. When First Priority came close to collapse in 2018, Civitas successfully transferred the leases to another provider but there is doubt over how easy this will be to achieve in future. The REIT says it mitigates against the risk by ensuring that the underlying properties are well-located and properly adapted so they will be in high demand regardless.Are there any other areas of concern?Currently, just 54% of Civitas' properties are EPC rated A-C, which means it has work to do to improve the green credentials of the rest of the portfolio to comply with regulations coming into force in 2030. The REIT hopes to be able to benefit from government grants to help pay for improvement works, but it remains unclear exactly how much of the bill will have to be footed by the trust.
gopher: Having read the shadowfall letters I would say that CSH has adopted procedures not unknown in property companies but this is a disconnect with ESG principles the Trust represents and I am guessing a good proportion of shareholders thought they were buying into.I don't see who the buyers would be at this level but obviously if the share price continues to fall then vultures circle.
pdt: Looks like a comprehensive reply to me. Strong demand for their properties, dividend covered from rising cashflow and good controls/oversight. 6% yield. 100% rent collection. I do think future regulation will require easier exit from leases. But if they are genuinely offering value for money compared to the rest of the Care sector providers then I doubt they will have trouble finding tenants. And while the share price is below NAV diverting funds from new property purchases to share buybacks seems better value for shareholders. I am a holder - 6% yield plus capital appreciation as price moves back to reflect NAV over time. Having said that it is a small percentage of my portfolio so happy to take the risk. As usual time will tell and will the shorters close or double down?
williamcooper104: Will have to see CSHs response - some of what they are accused of such as misrepresenting 10 year leases as 20 years is very serious (though actually that could be positive as might make it easier to remove the manager) - but we've only heard one side of the story - the the covenants/security of income is compromised, but we don't yet know just how dodgy management are Not sure if there's a huge upside to shorting now - it may bounce on managements response - and the share price is pricing in some lease restructuring Short CSH and long SOHO might be interesting if you just want to play CSH being dodgy
davebowler: Liberum; Civitas Social Housing Response to Shadowfall letter Mkt Cap £593m | Share price 95.4p | Prem/(disc) -11.9% | Div yield 5.8% Event Civitas Social Housing has published a response to yesterday's open letter from Shadowfall Capital. Shadowfall has a 0.8% short position in CSH. Shadowfall's letter focused on three main areas: Transparency on transactions with entities where the directors of the investment manager have an interest The funding framework for rental income Viability of rental income The board has stated that it believes the letter is inaccurate and erroneous. A more detailed response will be published following a review of the claims in the lengthy letter. The company has reiterated its confidence in the portfolio and business model and reports robust operational performance. Liberum view We would expect a thorough response to the claims in the letter in the near term, particularly in relation to the queries on the funding framework. We note the company has continued to buy back shares, demonstrating confidence in the underlying business model. The questions raised regarding conflicting lease terms should be relatively straight forward for the company to respond to. In relation to the transaction with the entities where the directors have an economic interest, Civitas undertook a number of transactions where it acquired operating care businesses with property assets. The transactions were structured in this way in order to facilitate the acquisition of the properties. CSH cannot hold the care businesses and these were sold on as part of a back-to-back transaction with the Envivo Group (an entity in which the directors of the investment manager each hold a 10% stake in). The transactions were not disclosed publicly at the time as CSH did not want to highlight the transaction structure to competitors. We believe the figures referred to in the Sunday Times article do not give an accurate representation of the acquisition multiple. From Companies House, the TLC Care Home business was acquired for £5.4m (£4.3m to Civitas and £1.1m to pay off some of the liabilities of the acquired entities and other costs). The multiple was approximately 3x on the following year’s operating profit. The letter from Shadowfall essentially claims that the true underlying occupancy of the properties is lower and rent is being funded through payments from care providers and developers. The company has consistently stated that service level agreements between the care providers and registered providers include provisions to cover voids. It is the care provider and local authority who decide on the fill rate based on clinical decisions and there are several reasons why a planned void may occur. Developers also agree to cover voids for a period of time when a new property is being brought into the sector and occupation will be staged for clinical reasons. In terms of void payments that are being met by the registered providers, the company previously guided to sub-5% and typically within a range of 1-3%.
Civitas Social Housing share price data is direct from the London Stock Exchange
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