Safe as houses
Posted: February 22nd, 2018, 3:06 pm
I had casually noted a fall in the share price of Civitas Social Housing REIT (LSE:CSH) over the past month, together with an appearance in citywires z score weekly list of cheap trusts. Today's R.N.S. from the company has added momentum and substance to the fall.
Civitas was marketed as a reliable and semi inflation linked source of dividends. As they state " Income is based on long term leases and occupancy agreements of typically 10 to 40 years. Circa 85% plus of rental income paid to the Company by Registered Providers will be directly paid by Government or Local Authority. The social housing sector has never suffered a credit loss." Investors include Peter Spiller at Capital Gearing Trust - all ways on the look out for an inflationary linked turn.
It now transpires that a Housing Association,FPHA, holding around 10% of Civitas's assets has got into financial difficulties. It will be interesting to see if this becomes politicized, and how good the promise of taxpayer funding flowing through to the creditor proves.
Civitas was marketed as a reliable and semi inflation linked source of dividends. As they state " Income is based on long term leases and occupancy agreements of typically 10 to 40 years. Circa 85% plus of rental income paid to the Company by Registered Providers will be directly paid by Government or Local Authority. The social housing sector has never suffered a credit loss." Investors include Peter Spiller at Capital Gearing Trust - all ways on the look out for an inflationary linked turn.
It now transpires that a Housing Association,FPHA, holding around 10% of Civitas's assets has got into financial difficulties. It will be interesting to see if this becomes politicized, and how good the promise of taxpayer funding flowing through to the creditor proves.