Civitas Social Housing’s (CSH’s) discount 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 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 manager says that the fundamentals that support growth in the sector remain strong and aren’t going away. Since the short seller attack, CSH’s shares have traded on a wide discount, while it has increased its dividend target for this year.
27 May 2022
Civitas Social Housing - ‘Fundamentals remain strong’
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Civitas Social Housing - ‘Fundamentals remain strong’
- Published:
27 May 2022 -
Author:
James Carthew | Matthew Read | Richard Williams -
Pages:
12
Civitas Social Housing’s (CSH’s) discount 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 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 manager says that the fundamentals that support growth in the sector remain strong and aren’t going away. Since the short seller attack, CSH’s shares have traded on a wide discount, while it has increased its dividend target for this year.