30th Nov 2020 09:14
(Alliance News) - Civitas Social Housing PLC on Monday reported a robust performance in the first half of its financial year with rental income not affected at all by Covid-19.
Civitas Social is a FTSE 250-listed real estate investment trust which focuses on social care housing and healthcare facilities.
At September 30, Civitas Social posted a diluted basic net asset value per share of 108.01 pence, up 0.7% from 107.23 pence per share a year prior.
Pretax profit for the six months ended September 30 stood at GBP17.5 million, flat to the prior year's GBP17.4 million.
Rental income increased 7.0% to GBP24.3 million from GBP22.7 million a year before. This was as a result of new investments made in the period, on-track indexation of rents and the effect of rental income on properties purchased prior to the period, the company said.
"Financial performance has continued to be robust. During the period, rents have been received as expected, with no Covid-19 impact. The overall continuity of rental receipts reflects the positive performance of our housing association partners and the commitment of government and local authorities who regard supported living as the preferred means to deliver housing and care in the community," Civitas stated.
Civitas Social declared an interim dividend of 2.68 pence per share, up 1.1% from 2.65 pence per share a year prior.
Going forwards, Civitas Social said: "We are still in uncertain times in relation to Covid-19 and its impact upon society in the short, medium and long term. What is absolutely certain is that the extraordinary shortage of social housing in general, and specialised supported housing in particular is a challenge that society needs to address now.
"The evidence is overwhelming that housing the most vulnerable individuals in our society in proper homes in the community is of paramount importance and not only transforms people's lives but also is more cost-effective for the public purse."
Non-Executive Chair Michael Wrobel added: "The demand for care-based housing continues to grow, with Covid-19 having reinforced the benefits of safe, secure homes over long-term institutionalisation."
Wrobel also noted that the company has developed an "attractive pipeline" of approximately GBP180 million.
Civitas Social shares were up 0.9% at 102.88 pence each in London on Monday morning.
By Greg Roxburgh; [email protected]
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