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About Civitas

About Civitas

Civitas Social Housing PLC is the first real estate investment trust dedicated to investing exclusively into existing portfolios of built social homes in England and Wales. The Company achieved admission to the premium listing segment of the Official List of the London Stock Exchange in November 2016, raising £350 million in an oversubscribed IPO.

Civitas works in partnership with Housing Associations and Local Authorities (together “Registered Providers” ) to help them unlock capital held in existing social homes for new development and to promote the delivery of new social homes. Civitas does not develop or manage social homes directly but works in close collaboration with Registered Providers and others who provide these services.

Civitas’ investment activity supports housing providers with the provision of permanent capital to facilitate their objective of delivering more social homes and offers investors the potential for sensible, risk adjusted real returns with regular dividend distributions.

Our Approach

The Civitas team has, over many years, been responsible for managing some of the larger portfolios of social homes in England and Wales as well as building many new social homes.

This first-hand experience has conditioned the ability of Civitas to develop approaches that present Housing Associations, Local Authorities and other housing professionals with flexible new funding options to secure additional permanent capital that they can deploy in the development of new social homes.

In particular, Civitas is able to combine equity release from existing social homes with continued tenant and property management of the homes by that Housing Association or Local Authority. Similarly, where it is more efficient, Civitas can provide solutions with tenant and property management being transferred to a more geographically cost-effective housing association or local authority.

At a time of chronic housing shortage, Civitas is able to support social housing providers in the restructuring of their housing portfolios to enable them to benefit from the lowest possible administration costs and so direct the maximum resources to provide the best tenant services and to building new social homes.

In all cases, the Company focus is on preserving the availability of social homes within the social sector and, in particular, to ensure that they continue to be made available to the audience for whom they were intended and where there is great social need.

Why Invest With Us

An investment in Civitas will enable investors to gain exposure to a diversified Portfolio of Social Homes in England and Wales.

Civitas is the first REIT to be listed on the London Stock Exchange which offers a pure play exposure to Social Housing. The total value of the Social Housing Sector today is circa £300 billion and has not seen a loss suffered by funders as a result of a housing association or local authorities’ default.

Civitas acquires portfolios of fully developed social homes across England and Wales and does not undertake any development or forward-funding of development.

Our investment objective is to provide shareholders with an attractive level of income, together with the potential for capital growth from investing in a portfolio of social homes, which we expect will benefit from inflation adjusted long-term leases or occupancy agreements with Housing Associations or Local Authorities and to deliver, on a fully invested and geared basis, a targeted dividend yield of 5%[1] per annum by reference to IPO issue price of 100p per share.

[1] This is a target only and not a profit forecast. There can be no assurance that the target can or will be met and should not be taken as an indication of the Company’s expected or actual future results. Accordingly, potential investors should not place any reliance on this target in deciding whether or not to invest in the Company or assume that the Company will make any distributions at all and should decide for themselves whether or not the target dividend yield is reasonable or achievable.

 

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