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Civitas Social Housing posts strong results

Civitas targeted by short-seller

Civitas Social Housing has reported a strong set of annual results for the year to 31 March 2022, posting a NAV total return of 7.0%.

The group’s IFRS NAV increased to 110.3p per share (2021: 108.3p) following a 5.8% increase in the value of its portfolio to £968.8m.

Dividends of 5.55p per share were paid during the year, which were not quite covered by EPRA earnings of 4.82p per share, on a run-rate basis (97%) and actual basis (87%). The company has raised its dividend target for the year to March 2023 to at least 5.7p per share. Annualised rent roll increased by 6.5% to £54.1m.

On the financial side, the group’s loan to value (LTV) ratio was maintained at 34.4%, while it extended the maturity of its £100m loan facility with HSBC Bank to November 2023 at SONIA plus 2.02% margin and post year end the £60m facility with Lloyds Bank was also extended to July 2024 at SONIA plus 1.67% margin. Its investment credit rating from Fitch Ratings of “A-” (stable) and “A” Secured was maintained, which opens access to a broader range of long-term funding markets.


Civitas acquired 77 properties during the year (29 properties for £21.9m providing homes for vulnerable adults, 47 properties for £8.1m to deliver asylum accommodation and one property in Lancashire for £1.4m providing a home for 13 individuals with learning disabilities and mental health care needs). Its portfolio now extends to 696 properties providing homes to 4,592 residents.

Properties are located across 178 local authorities in England and Wales and leased to 18 approved providers, with support provided by 130 care providers. Over one third of the portfolio is on back-to-back 25-year leases with care providers.

The company recently announced the proposal of a new regulatory clause, which is designed to help counterparties become better able to achieve regulatory compliance (read more details on this in our research note on the company here).

Michael Wrobel, non-executive chairman, said: “Our Investment Adviser, Civitas Investment Management Limited, has exceptional knowledge of the industry and continues to add to its team to enhance our portfolio. CIM has been working on an initiative to introduce a variation to our leases, that will not impact revenues or asset values, but which aims to strengthen the industry by addressing concerns expressed by the Regulator for Social Housing.

“The sector in which the Company invests offers many positive attributes, in an increasingly uncertain world. We benefit from high levels of intrinsic underlying demand for our properties. All of our leases benefit from CPI uplift on rents, some of which are subject to a 4% cap. Together with our partners, we enable the delivery of high quality, value for money care services for our tenants. Our initiatives on new lease clauses and further projects with E.ON to reduce our carbon footprint, will deliver further benefit to our stakeholders. We look to the future with confidence.”

CSH : Civitas Social Housing posts strong results

1 thought on “Civitas Social Housing posts strong results”

  1. Share price dropped c8.5% by the close on 1/7/22, which seems out of line with results. Perhaps the market expected better? Or are there short-sellers at work again? Or are there concerns at some tenants’ ability to pay rents, which will be increasing in line with CPI (or the 4% cap if applicable)? Discount to NAV is now c28%, after trading at a near 10% premium last summer!

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