13th May 2019 08:28
LONDON (Alliance News) - Social housing investor Civitas Social Housing PLC on Monday reported a slight rise in quarterly net asset value, with rental income climbing in some investments.
Civitas's IFRS net asset value at March 31, the end of its financial year, was 107.1 pence per share, up from 106.5p three months before. Ordinary net asset value per share was 119.1p from 115.1p.
Civitas made a "significant" amount of investment in the period, it said, and added 34 properties to its portfolio. Many leases saw rental income rise due to annual indexation, Civitas added.
This means the firm's run-rate of rental income at March 31 was GBP45.7 million, which is expected to grow further, helping Civitas meet leverage and dividend targets.
Civitas is targeting leverage of 35% and a dividend for its year ending March 2020 of 5.3p.
"The demand for affordable housing of all types continues to grow at a much faster pace than supply," said Civitas.
"Against a backdrop of house price volatility and uncertainty driven by Brexit and other macro factors many larger housing associations have started to reduce their homes for full market sale programmes and this, in turn, has a knock-on effect of reducing the profit subsidy that can be reallocated to affordable housing and so may lead to a reduction in future supply."
Shares were 0.7% higher on Monday morning at 88.20p each.
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