Civitas Social Housing (CHS) has announced its net asset value as at 31 December 2020, a dividend declaration, and provided a trading update.

CSH stated it continues to perform in-line with expectations, with rents in the quarter collected as normal, unaffected by Covid-19, with more than 99% of rents due by the end of 2020 received across CSH’s 619 properties, with the balance expected shortly.

Rental income and net cash generation have advanced, boding well for the company’s target of paying a total dividend of 5.4p for the year to 31 March 2021 and for maintaining a progressive dividend policy in-line with inflation. Revenue from the portfolio, including income contracted from new investments, delivers 100% European Public Real Estate Association (EPRA) dividend cover on a run rate basis.

CSH added one property to its portfolio in Q4, situated next to an existing larger building owned by the company in Chorley, Lancashire and it will consolidate the site.

Terms for the company’s new debt facility have been agreed and will be announced shortly, after which it expects to begin plans for a number of additional pipeline acquisitions.

CSH said it is enhancing the environmental footprint of its portfolio, instigating several pilot energy efficiency improvements within its buildings, including installing solar photovoltaics and air source heat pumps to reduce carbon emissions. This is part of a broader engagement with potential turnkey partners to deliver portfolio-wide energy improvements, including retrofit, energy use reductions, and enabling technology.

The company’s portfolio, based on individual asset valuations, has been valued at 31 December 2020 at an average net initial yield of 5.26% (no change from 30 September 2020) after taking into account the initial costs of property acquisitions incurred by the company and the assumed costs of a subsequent theoretical sale.

In the period to 31 December 2020, an ordinary share dividend of 1.35p per share was declared in respect of the period ended 30 September 2020 and paid in December, amounting to £8.4 million.

The portfolio, as a single entity, was valued at 31 December at 5.09% net initial yield (30 September: 5.08%) reflecting the enhanced value from the aggregation of individual properties into a single portfolio company and the positive effects of a stamp duty adjustment.

The board today declared a third quarterly dividend for the period from 1 October 2020 to 31 December 2020 of 1.35p per ordinary share as part of the target of 5.4p per ordinary share for the year to 31 March 2021, to be paid on or around 1 March.

Date published: February 2, 2021

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