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Civitas Social Housing PLC on Tuesday said its net asset value per share and net rental income were up in its recent half-year, prompting an increased interim dividend.
The Exeter, England-based healthcare real estate investment trust said its NAV per share on September 30 was 114.84 pence, up 5.9% from 108.49p a year prior. Shares in Civitas Social Housing were up 1.9% to 62.58p each in London on Tuesday morning.
It also declared two interim dividends of an aggregate 2.85p, up 2.7% from 2.78p.
Net rental income in the six months that ended September 30 was up 6.0% to £26.6 million from £25.1 million, which Civitas Social Housing said reflected clear demand for fairly priced, high-quality and sustainable housing.
Civitas Social Housing expects rental growth to continue in the medium term in line with inflation, noting that around 30% of its leases have consumer price index uplifts capped at 4%.
‘We are also mindful of the impact of the recent rises in interest rates and the drag that will have on our earnings from operational activities. Nonetheless, it remains our expectation that we will pay dividends of 1.425p over each of the next two quarters to our year-end,’ said Chair Michael Wrobel.
Civitas Social Housing said it was encouraged by the UK government’s autumn statement last month, which vowed to protect the vulnerable amid the cost of living crisis. It noted that UK Chancellor Jeremy Hunt confirmed the government will cap social housing rent increases at 7% rather than the previously suggested 5%, which Civitas Social Housing said demonstrated commitment to high-quality social housing.
‘The company continues to implement its voluntary improvement programme with E.ON leading to lower energy costs for residents and which alongside the latest independent Social Impact Report demonstrates ongoing commitment to tenant well-being,’ Wrobel added.
Civitas Social Housing also signed a new five-year £70.8 million facility with a new bank lender on Thursday last week. It expects to fund the transaction in the new year, subject to closing conditions.
By Greg Rosenvinge, Alliance News reporter
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