CIVITAS SOCIAL HOUSING PLC

(“Civitas” or the “Company“)

Civitas Social Housing PLC (“Civitas” or the “Company”), the first Real Estate Investment Trust (“REIT”) to be listed on the London Stock Exchange offering pure play exposure to social housing, is pleased to announce its intention to launch an initial public offering of ordinary shares in the capital of the Company (“Ordinary Shares”) (“IPO”).

The Company will be making an application for its shares to be admitted to the premium segment of the Official List of the UK Listing Authority and to trading on the London Stock Exchange’s main market for listed securities (“Admission”).

KEY HIGHLIGHTS

  • Civitas is a company formed to acquire a diversified portfolio of Social Homes in England and Wales

o The social housing sector in England and Wales (the “Social Housing Sector”) is valued at circa £300 billion and is regulated by the Homes and Communities Agency, a government sponsored body

  • Social Housing represents a significant market opportunity

o There is a substantial housing shortage in the Social Housing Sector, with approximately 4.5 million people currently on local authority housing waiting lists in the UK
o Supply of new Social Homes has declined in 2015/16 for several reasons including the reduction in government grant for new rented Social Homes
o Portfolios of Social Homes are becoming available for investment due to current providers seeking to reduce costs and improve internal efficiencies
o Civitas has identified a significant pipeline of potential assets, including a near term opportunity in Specialist Social Homes at a purchase price of circa £60 million

  • Attractive and stable income o Income will be underpinned by long term leases and occupancy agreements of typically 10 to 40 years

o Approx. 85% of rental income paid to the Company by Housing Associations, Local Authorities (together “Registered Providers”) will be directly paid by the government or Local Authorities
o A targeted dividend yield of 5% expected to increase broadly in line with inflation*
o The Social Housing Sector has not seen a loss suffered by funders as a result of a Registered Provider’s default

  • The Company’s strategy has a positive social impact – enabling the development of new Social Homes

o By enabling Registered Providers to release capital currently tied up in housing stock to support the building of new Social Homes
o By helping them achieve their goal of improved operational and cost efficiencies

  • Advised by Civitas Housing Advisers (“CHA”), a strong management team with proven experience

o The CHA team has significant direct experience in the management of social housing, including CHA’s Chief Executive Officer, Paul Bridge
o Paul Bridge was the former Chief Executive of Homes for Haringey and previously a Director of Hyde Group (one of the larger Housing Associations)
o The combined CHA team have had regulatory and operational experience in the highest level in the Social Housing Sector

Michael Wrobel, Chairman of Civitas Social Housing PLC, said:

“The reduction in government grant for social housing, coupled with the social housing sector’s ongoing drive to improve efficiencies provides Civitas Social Housing PLC with a strong opportunity to assist Housing Associations and Local Authorities to free up the capital required to build additional Social Homes. This also provides investors an opportunity to access stable, long term income and capital growth, in the Social Housing sector which has not seen a loss suffered by funders as a result of a Registered Provider’s default.”

Paul Bridge, CEO of Civitas Housing Advisors Limited said:

“There is a significant need for additional social housing across England and Wales. Meeting this need requires innovative solutions to support the current network of providers. This includes enabling providers to gain access to capital that is currently tied up in existing housing stock. Releasing this capital will allow providers to fund the additional developments required to increase social housing. With the team’s experience, knowledge and relationships in the social housing sector, Civitas Social Housing PLC is well positioned to play a role in this important process.”

*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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