15th Sep 2022 09:50
(Alliance News) - Civitas Social Housing PLC on Thursday said its financial performance continues to be robust and in line with management expectations.
The social housing investor said it has continued to see strong demand for its specially adapted community-based properties, which provide homes for life for working age adults with a range of complex needs.
Further, the company's current leverage stands at 34%, which is "comfortably" within the self-imposed maximum level of 40% set at the time of Civitas's initial public offering.
"Progress is being made in increasing the average tenor of facilities and reducing exposure to interest rate movements for that part of the loan book that is not already fixed," it added.
Further, Civitas said that its first phase of its partnership with E.ON SE has reduced carbon dioxide emissions and improved its energy performance certificate ratings on several properties of its properties. The company has a target of a minimum EPC 'A-C' rating by 2030.
The deal was announced in June, with the German power utility E.ON contracted to help to reduce the carbon footprint of the company's portfolio.
It also remains confident in its new lease clause proposal, which it aims to roll out over the medium term.
On Tuesday, Civitas announced that its new regulatory clause has been agreed. The new clause is intended to assist housing associations to be better positioned to achieve regulatory compliance under the Regulator of Social Housing's Governance & Financial Viability Standard.
In the past 12 months, the company said it has bought back GBP10.9 million worth of shares, at a discount to prevailing net asset value. It explained that this has cumulatively enhanced net asset value per share by 0.4 pence.
Civitas continues to explore other ways to address the discount to NAV and restore shareholder approval, it added.
Shares in Civitas were up 2.7% to 77.20 pence each in London on Thursday morning.
By Sophie Rose; [email protected]
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