Civitas Social Housing delivers on promises – over the year ended 31 March 2020, Civitas Social Housing delivered a total return to shareholders of 20.4%, an increased NAV (up to 107.87 from 107.08), its dividend target of 5.3p (up from 5.0p), and a run-rate dividend cover of 100% as at 31 March 2020. the new dividend target is 5.4p, an increase of 1.9%, just ahead of inflation.
Net rental income increased by 28.4% to £45.9m and profit before tax grew by 89.9% to £37.7m. Operating cash flow increased by 41.0% to £32.9m. The group’s loan to value ratio stood at 27% at the year end (versus a maximum 40%).
£31m was spent on acquiring 22 properties with 144 tenancies. They also exchanged contracts on a small number of other properties for subsequent completion, and entered into forward purchase agreements for the delivery on completion of a number of newly developed higher acuity facilities in Wales, valued at £12.1m. The first of these has now been delivered.
With the mandate expanded to include the NHS and charities as counterparties, and a significant pipeline of investment opportunities from a variety of sources, including larger care providers, an equity fundraise is likely in our opinion.
Fortunately, the instance of COVID-19 amongst tenants and staff remains low (helped by the age-profile of their tenants). The group was pleased to make 29 self-contained accommodation units for Islington Council available for housing some of the borough’s homeless people.
CSH : Civitas Social Housing delivers on promises