Civitas declares dividend as 'uncertainty' condition lifted from portfolio

Civitas Social Housing reported a “robust” financial performance in the quarter ended 30 June on Thursday, in line with expectations, with rents received “as normal” and no Covid-19 impact during the three months.

The FTSE 250 social housing provider said its IFRS net asset value per share stood at 107.92p at period end, up marginally from the 107.87p reported at the end of the March quarter.

A dividend of 1.35p was declared for the quarter, as planned.

The company did note the removal of the RICS ‘material valuation uncertainty’ condition from its portfolio, as it acquired another three properties during the quarter, for £3.9m.

Its board said there was a “strong pipeline” of investment opportunities available.

“The healthcare and housing sectors in which the company operates have continued to prove operationally resilient against the backdrop of the Covid-19 pandemic with care providers and housing associations continuing to adapt best practice for the safety of residents and staff,” the board said in its statement.

“Whilst no part of the economy has been completely immune from the virus, the instances of Covid-19 within the company's portfolio remains at a very low level with many properties reporting no occurrences at all.

“The company continues to offer its thanks and support to its counterparties and acknowledges the excellent way in which they continue to perform.”

Civitas’ board said it operated a “robust and defensive” business model.

“This is driven by meeting, in a cost-effective manner, the legitimate needs of vulnerable individuals who require the accommodation provided by the company to enable them to reside, for the long-term, in community settings in line with stated government policy.

“The Covid-19 pandemic provides a further demonstration of the merits of enabling individuals to reside either in their own dwelling or in small clusters as opposed to old style, large scale, remote residential or hospital settings.

“When evaluating the performance of counterparties, the company believes it is important for all interested parties to take these broader and usually very positive personal outcomes into account.”

At 0906 BST, shares in Civitas Social Housing were up 0.06% at 112.86p.