2nd Feb 2021 09:30
(Alliance News) - Civitas Social Housing PLC on Tuesday said it is on track to meet its full-year dividend target, as trading remained in-line with expectations and unhindered by the virus pandemic during the third quarter of its financial year.
Civitas Social is a FTSE 250-listed real estate investment trust focused on social care housing and healthcare facilities.
Net asset value per share at December 31 was 108.17 pence, up marginally from 108.01p at September 30.
Civitas Social said rent collected was in line with expectations and unaffected by Covid-19.
Civitas Social declared a dividend of 1.350p, up 1.9% from 1.325p last year and in-line with its full-year target, thanks to rental income and net cash generation "advancing positively".
"Rental income and net cash generation have advanced positively to provide further support for the company's target of paying a total dividend of 5.4p for the year to 31 March 2021 and for maintaining a progressive dividend policy in-line with inflation. Revenue from the portfolio, including income contracted from new investments, delivers 100% EPRA dividend cover on a run rate basis," the company said.
Going forward, Civitas Social said: "As the anniversary of the first Covid-19 lock-down approaches, the sector in which Civitas Social operates continues to demonstrate strong fundamentals and robust operational characteristics that reflect the essential care services delivered within the company's properties.
"Demand for high-quality homes in the community to provide lifelong housing for people with learning disabilities, mental health and autism is continuing to grow. This is the result of a number of key drivers: the closure of old remote hospitals, an increasing number of young people requiring adult care services and as parents and guardians themselves require elderly care support, the need for people to move from family homes into permanent care-based accommodation."
Civitas Social added that the terms of a new debt facility have been agreed. Details on this will be announced soon.
Civitas Social shares were up marginally at 106.91p each in London on Tuesday.
By Greg Roxburgh; [email protected]
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