Civitas consolidates success with outstanding first year

Interim results reveal ‘rise and rise’ for first London listed REIT dedicated to investing into regulated social housing in England and Wales.

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Civitas has consolidated its rapid rise through the social housing sector with an investment portfolio now independently valued at more £343m.

Confirmation of the valuation comes in in a set of interim results for the period ended September 30 this year.

Civitas was admitted to the London Stock Exchange in November last year 2016 in a £350m offering. It was the first London listed REIT dedicated to investing into regulated social housing in England and Wales.

Highlights from the results include:

Financial

  • Investment portfolio independently valued at £343.3m
  • +11.8% increase in Portfolio NAV per ordinary share (“Share”): 109.6p as at 30th September 2017
  • +5.3% increase in IFRS NAV per Share: 2p as at 30th September 2017
  • +13.1p per Share Earnings based on Portfolio NAV: based on comprehensive income and property revaluations
  • +6.7p per Share Earnings based on IFRS NAV: based on comprehensive income and property revaluations
  • Total of 2.25p per Share of dividends declared over the Period
  • Contracted Annualised Rent Roll: £17.4m based upon £285.3m capital deployed at the end of the Period
  • Average Net Initial Yield: 6% before property purchase costs
  • Weighted Average Unexpired Lease Term:3 years

 Operational

282 properties acquired in the Period, across 83 Local Authorities, based on long-term leases signed with 10 Housing Associations, providing dependable accommodation for 1,827 tenants supported by 50 care providers

  • The Good Economy, the social advisory firm, in their first independent Social Impact Report on Civitas noted “encouraging evidence” that Civitas can deliver on its social objective of increasing the provision of high quality social homes while achieving financial returns for investors

Post Balance Sheet

  • 29 properties acquired post the Period, totalling £16.2million
  • £52.2m 10 year fixed rate term loan facility from Scottish Widows
  • £302m of equity raised through a C share issue
  • £40m 3 year floating rate revolving credit facility from Lloyds Bank

 Michael Wrobel, Non-Executive Chairman, Civitas said: The Company’s financial, operational and social performance over the period has been very encouraging.

“Civitas continues to benefit from being a first mover and being able to invest in scale.

“It has achieved what it initially set out to; creating a property portfolio that offers investors the opportunity of long-term income and the potential for capital growth, whilst providing tenants with high quality stable homes.

“With the addition of the funds raised through the recent C share issue and debt issuance, we look forward to further capitalising on our pipeline of opportunities”.

  • This month Civitas secured a 3-year floating rate revolving loan facility of up to £40m from Lloyds Bank plc based upon a margin over three month LIBOR.

The Facility, arranged by Lloyds Bank Commercial Banking, is repayable 3 years from the date of signing, with a 12-month extension option.

It is secured against a ring-fenced portfolio of the Company’s properties.

The Facility is the second tranche of a planned debt funding programme, following the £52.5m fixed rate term loan facility from Scottish Widows Limited announced on 3rd November 2017. Rothschild & Co advised on both financings.

It will offer increased capital flexibility for the Company while assembling its portfolio, alongside the primary use of long-term debt.

Civitas anticipates announcing the provision of certain additional long-term fixed rate loan facilities in due course, in line with its stated intention to secure long-term debt funding.

Michael Wrobel, Non-Executive Chairman, Civitas said: “We are delighted to have secured this loan facility from Lloyds Bank, which offers Civitas additional capital flexibility over the coming years, over and above the £302m recently raised in the Company’s C share issue.

“The availability of the Facility continues to demonstrate the high quality of the Company’s assets.”

Michael Thompson, of Lloyds Bank Commercial Real Estate, said: “Following on the back of the recent long term financing, we are pleased to continue our support of Civitas through the provision of this key facility.

“This will help provide the management team with the flexibility in financing future acquisitions and assist further growth aspirations.”

 

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