Civitas Social Housing is considering an equity raise to fund its acquisition pipeline and enhance returns.
The group said uncommitted capital resources were limited so it would evaluate options, including a potential equity raise, to fund new acquisitions.
An £85m M&G debt facility, agreed earlier this year, has been invested or reserved for existing pipeline projects.
In the quarterly NAV announcement, which saw its IFRS NAV notch up slightly to 108.42p per share, the group also declared a quarterly dividend of 1.3875p. This is in line with its new increased dividend target for the year to March 2022 of 5.5p per share.
During the quarter to 30 June 2021, the company completed the acquisition of 28 properties:
- 15 supported living and care facilities in South Wales for £10.9m,
- 10 supported living properties across Hertfordshire, Essex, Suffolk and Wales for £8.6m, and
- three supported living properties in the East of England for £2.5m.
These properties provide in total 96 beds for individuals with learning disabilities and mental health care needs with dedicated facilities bespoke to each property to develop and enhance independent living skills such as cooking, numeracy and literacy.
CSH : Civitas considers equity raise
Does anyone know please why the share price has dipped (tanked) in recent weeks? Thanks.
Hi Peter, the company was trading at a premium to NAV when it alluded to the potential equity raise (which are usually priced at or around NAV) therefore undermining its share price at that time. There was also a regulatory notice on one of this largest tenants on 13 Aug which didn’t help either