Research from QuotedData
Civitas Social Housing - Research from QuotedData
27th May 2022
Fundamentals remain strong
Civitas Social Housing's (CSH's) discount to net asset value (NAV) has yet to recover from an activist short seller attack last year, with its share price almost as low as it has ever been in over five years since it launched. Although CSH's manager made a strong rebuttal to the allegations made by the short seller, regulatory concerns around the financial strength of some of its housing association tenants has persisted throughout its existence. To aid regulatory compliance, CSH plans to add a new clause to leases that would enable greater risk-sharing with the housing associations and allow them to temporarily stop paying rent in certain circumstances.
The fundamentals that support growth in the sector remain strong and aren't going away, namely increased demand from individuals and a lack of supply. The high dividend yield/large discount to NAV that CSH's shares are trading on seem appealing.
Full research:
https://quoteddata.com/research/civitas-social-housing-fundamentals-remain-strong-qd/
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NB: Marten & Co was paid to produce this note on Civitas Social Housing Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the FCA. Marten & Co is not permitted to provide investment advice to individual investors.
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