11th Oct 2021 09:52
(Alliance News) - Civitas Social Housing PLC on Monday said its assets and revenue are performing in line with expectations, as it seeks to earn back shareholder faith.
The Exeter-based real estate investment trust last month reported that a special resolution at its annual general meeting failed to garner sufficient shareholder support.
The proposal, a special resolution seeking authority to allot shares up to 10% of its issued share capital, saw 27% of votes cast against it. As it was a special resolution, it needed support of at least three-quarters of the votes cast.
The lack of faith saw a fall in the social care housing and healthcare facilities investor's share price, which prompted the company to buy back its shares "as an enhancement to shareholder value", it said on Monday
Civitas shares have dropped 13% so far in 2021. However, they were up 3.1% at 91.00 pence in London on Monday morning.
The real estate company noted that its buyback required a diversion of funds that would otherwise have been used to purchase further properties.
Alongside buying back, Civitas has released a paper to provide detailed responses to the questions it recently has discussed with shareholders.
The paper sets out last year's operational cash flow, the due process, oversight and governance undertaken by management, property purchases, and the various ways in which Civitas drives and supports rental income, among other things.
The paper also reaffirms Civitas' full year dividend target of 5.55 pence, which will comprise four interim payments of 1.3875p each, the first having already been declared. It added that assets and revenue are performing in line with expectations,
The year prior, Civitas reported a 1.3500p interim payout for the same period and had targeted a 5.40p total dividend.
It reported in early August an IFRS net asset per share of 108.42 pence on June 30, rising 0.5% from 107.92p a year prior. Portfolio NAV per share rose 0.9% to 119.51p from 118.40p.
By Josie O'Brien; [email protected]
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