Civitas social housing - profile image - 25062019 - JPG

Civitas Social Housing

LN: CSH

£663.9m market cap

106.8p last close

Civitas is the leading listed UK social housing REIT. Its investment objective is to provide an attractive level of income, with the potential for capital growth, from investing in a diversified portfolio of fully developed social homes, particularly specialist supported housing (SSH) for vulnerable adults.

Investment summary

The strong FY20 financial performance, driven by continuing portfolio growth and CPI-linked rent increases, continued into Q121. With no impact on rent receipts from COVID-19, a Q121 DPS of 1.35p was declared in line with the target of 5.4p (1.9%) for the year while IFRS NAV per share edged ahead to 107.92p. Acquisitions continued in Q121 (£3.9m before costs) and since, including the new 65-bed purpose-built state of the art supported housing and healthcare facilities in Wales. With an extensive pipeline of potential investment opportunities, including those related to the broadened investment remit recently approved by shareholders, the company is considering further capital raising options, including up to £140m of additional debt as it moves towards its target 35% gearing.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2019A 35.7 26.1 19.9 3.63 29.4 N/A
2020A 46.2 36.4 38.0 4.63 23.1 N/A
2021E 52.2 43.0 44.9 5.50 19.4 N/A
2022E 55.6 46.1 54.1 5.86 18.2 N/A
Industry outlook

The chronic shortage of SSH is forecast to increase, yet compared with the alternatives of residential care or hospitals it is widely recognised to improve lives in a cost-effective manner. SSH leases are of long duration and rents are paid directly to housing association tenants by government via local authorities.

Last updated on 24/09/2020
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Share price graph
Balance sheet
Forecast net cash (£m) 227.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (3.3) (0.6) 22.8
Relative* 1.4 4.0 51.7
52-week high/low 114.0p/78.8p
*% relative to local index
Key management
Paul Bridge CEO