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Value of planned Civitas investments ‘exceeds remaining equity’
Civitas, a real estate investment trust (REIT) in the social housing sector, has “significant pipeline of further opportunities” whose value exceeds the trust’s remaining equity.
In an update to the market, the REIT announced that its investment manager, Civitas Housing Advisers, had identified this pipeline.
It added: “If completed, these investments would represent a value in excess of the remaining investable equity and potential debt finance.”
The investments in the pipeline are at different stages of due diligence and so funds may still be available if some of those deals were to fall through.
Since its initial public offering (IPO) in November last year, when it raised £350m after being oversubscribed, it has invested £229m in the sector, purchasing 212 properties with 1,351 tenancies.
It currently operates in 73 local authorities and has invested in eight housing associations and 42 care providers.
The REIT said that the investment “reflects the breadth of opportunity and sector relationship” that Civitas Housing Advisers had delivered.
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Civitas’ share price has increased by 7.5% since the IPO. It has also announced a dividend for shareholders over the quarter to 30 June of 0.75 pence per ordinary share. It is still aiming to reach 3.0 pence by December this year, and 5.0 pence by December next year.
Civitas buys existing stock from these providers and leases it back to them, providing one-off funding.
Earlier this month, it exceeded £200m of investment when it bought 35 supported living properties from small housing associations across the country.
