Civitas Social Housing has agreed a new debt facility that will allow it to grow its portfolio.
The group made the announcement with its quarterly net asset value (NAV) update today, but said the terms of the facility would be revealed shortly.
It added: “Following completion of certain formalities and on drawdown the company expects to be in a position to undertake a number of additional pipeline acquisitions.”
The company’s IFRS NAV at the end of December 2020 was 108.17p per share, a slight increase on the 108.01p at 30 September 2020.
The increase reflects the contribution from indexation on leases, modest capital expenditure to enhance the quality of properties in the portfolio and the acquisition of one new asset in the period.
Rent collection continued in-line with expectations, with 99% of rents billed in the quarter collected and the balance expected shortly.
Civitas declared a dividend for the quarter of 1.35p per share, in-line with its annual target of 5.4p for the year to 31 March 2021. The dividend is 100% covered by EPRA earnings on a run rate basis.
Market update
The company gave a market update in which it said the social housing sector was demonstrating “strong fundamentals and robust operational characteristics that reflect the essential care services delivered”.
It added that demand for high quality homes in the community to provide lifelong housing for people with learning disabilities, mental health and autism was continuing to grow. This is the result of a number of key drivers: the closure of old remote hospitals, an increasing number of young people requiring adult care services and as parents and guardians themselves require elderly care support, and the need for people to move from family homes into permanent care-based accommodation.
The social housing sector has a very low correlation to the broader economy or equity market movements and benefits from 100% government funding and value for money for the public purse, it added.
CSH : Civitas Social Housing agrees new debt facility