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Civitas to increase dividend as NAV notches up

Civitas Social Housing

Civitas Social Housing has increased its dividend target for full year 2022 by 2.8% after posting another increase in net asset value (NAV).

The group said in a trading update that it is targeting a dividend of 5.55 pence per share for the financial year ending 31 March 202, which represents an increase of 2.8% to the 2021 full year dividend of 5.4 pence.

IFRS NAV at 31 March 2021 was 108.3p per share (March 2020: 107.87p), reflecting the indexation of leases in the period.

The board said the above inflation target dividend has been set in reflection of its confidence in the future performance of the company due to strong operational and financial performance, stability of rental collection and its target gearing (c.35% gross assets) now in place.

Going forward, it said the company retains the ambition to grow the dividend in line with inflation as measured by CPI.

Other highlights in the trading update included:

  • Annualised rent roll increased to £50.4m (March 2020: £48.4m)
  • EPRA run-rate dividend cover of 100% as at 31 March 2021
  • 99% of rents received with no COVID-19 impact
  • Investment Grade Credit Rating obtained from Fitch (“A”/ “A-” Secured/Unsecured)
  • New M&G debt facility terms agreed and drawn

Market Update

Demand for high quality homes in the community to provide lifelong housing for people with learning disabilities, mental health conditions and autism is continuing to grow with long-term drivers including 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, the need for people to move from family homes into permanent care-based accommodation.

Expansion into Homelessness Services

Civitas is diversifying its portfolio into homelessness accommodation, where it said there is high long term structural demand, extensive care is required, the social outcome of addressing the issue will be transformational for people’s lives and considerable savings are achievable for the taxpayer.

In partnership with a number of local authorities and specialist charities, Civitas is establishing advanced homelessness facilities.

Notice of Results

Results for the year ended 31 March 2021 are scheduled to be released on 30 June 2021.

CSH : Civitas Social Housing to increase dividend as NAV notches up

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