21st Mar 2019 07:54
LONDON (Alliance News) - Civitas Social Housing PLC on Thursday announced approximately GBP85.6 million worth of acquisitions, as well as an increase in its rental income.
The real estate investment trust said it has completed the acquisition of 19 social housing properties for around GBP73.5 million and exchanged contracts on another 2 properties for GBP12.1 million.
The properties are located throughout England and Wales and are in more than 14 local authority areas and all are either purpose built or adapted for tenants with lifelong learning disabilities and other care needs.
All properties have been financed using Civitas Social Housing's existing loans. Looking ahead, the company is looking to announce additional debt facilities and is targeting average gross indebtedness equivalent to 35% of its portfolio value with a hard cap of 40%.
"This will enable the company to secure approximately GBP170 million of additional debt facilities in due course," said Civitas Social Housing.
The company's run rate rental income has risen 10%, following the acquisitions, to around GBP45 million from GBP41 million, and this is expected to rise with additional acquisitions.
On or around May 8, Civitas Social Housing will announce a quarterly dividend which it expects "will benefit from an upward adjustment to reflect inflation and the strength of the Company's underlying cash flows".
Civitas Social Housing Chief Executive Paul Bridge said: "We are delighted to have completed our largest deal so far, and to have acquired properties which are of the highest quality, run by focused and operationally robust registered providers.
"For investors, these properties will be immediately income-generating; for tenants, they offer the opportunity to live as independently as possible within their communities."
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