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Civitas Social Housing

Civitas Social Housing PLC Strong progress made on acquisition programme

Civitas Social Housing PLC (LON:CSH), the first London listed Real Estate Investment Trust dedicated to investing into regulated social housing in England and Wales, today announced its half year results for the period ended 30 September 2018.

Financial Highlights:

· Investment property independently valued at £678.7 million.

· £150.7 million of acquisitions made during the period, all in line with target 5.5% to 6.5% range.

· Annualised Rent Roll of £37.2 million, an increase of 31% reflecting acquisitions made during the period and indexation.

· Earnings per share of 3 pence, based on comprehensive income and property revaluations.

· Company adjusted earnings of 2.89 pence per share, based on comprehensive income excluding property revaluation and C share amortisation.

· Total of 2.5 pence per Ordinary share of dividends paid, in line with full year target of 5 pence.

· Weighted Average Unexpired Lease Terms: 25.1 years

· IFRS NAV of 106.1 pence per share, resulting in total shareholder return of 5.7% on annualised basis.

Operational Highlights:

· Civitas Housing Advisors continues to work proactively with its housing association and care provider partners. Alongside the Regulator of Social Housing (“RSH”), it is committed to playing a leading role in improving standards within the sector as well as responding to change in a professional manner.

· As part of the ongoing review announced earlier this year, RSH has issued several grading under review notices and regulatory judgements on many of the housing associations that provide specialist supported living. It is expected this will be an ongoing process, with the aim of enhancing gradings and supporting housing associations as they expand to meet substantial demand. Civitas is committed to playing its part in this process.

· On 9 May 2018, 44 leased properties were transferred from First Priority to Falcon Housing Association, an existing housing association partner of the Company, on the same terms, with an option to extend the leases to 40 years.

· In September, the Company was added to the FTSE EPRA Nareit Global Real Estate Index Series.

· The Good Economy, the social impact advisory firm, in its third independent Social Impact Report on Civitas, noted that the Company is achieving its social objectives and delivering positive outcomes for vulnerable people.

Funding:

· The Lloyds £40 million three-year floating rate revolving credit facility was extended by a further £20 million.

· Total drawn debt of £103.4 million reflecting gearing of 13% (available loan facilities of £112.5 million)

Post Balance Sheet Highlights:

· 16 properties acquired into the C share pool, totalling £28.2 million.

· New HSBC £100 million, three-year floating rate revolving credit facility agreed on 28 November 2018.

· Announcement on 15 November 2018 of the triggering of the C share conversion process.

· The Company joined the FTSE 250 Index on 13 November 2018.

Michael Wrobel, Civitas Non-Executive Chairman of the Company, commented:

“Over the period, the Company has made strong progress on its acquisition programme and has continued to work with its industry partners to improve the standard and availability of Specialist Supported Housing.

The increasingly diverse portfolio of high-quality assets, combined with the financial commitment from the Government towards Specialist Supported Housing and the defensive nature of the Company’s activities means that Civitas is very well positioned to continue to deliver on its strategy despite the more general political and economic uncertainly that exists at the present time”