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I think that is right. No short position here! I also don't think that Myspace (and other RPs) are going to impact Civitas as much as the other Reits. However, I am also concerned that the statement was "contorted" and based on reading the various reports over the last few years, the statement went from collecting all rents to collecting in line with "expectations". So my summary: I don't believe they are collecting all their rents and that management is distorting actual collections and fudging it with lease incentives. However, I think that this is all priced in and we are at/near the bottom and that we could be seeing a good buy unless we see further significant interest rate increases. All IMO of course.
The unduly negative posts which appeared on here and the other site explained why the share price had fallen so far; but were not a reliable sign that it would fall further. When sentiment is so negative, this is usually a good indication that a bottom has been reached and that a steady recovery may begin. This now appears to be happening (touch wood).
The Trading Update on 30th January contains the following sentence: "In respect of the three-months ended 31 December 2022 rent collections have taken place in the ordinary course and the Company has not experienced any material changes to its rent collection of the nature that has recently been reported elsewhere in the homeless accommodation sector, which is not a service generally provided by the Company."
This is clearly intended to be read positively (and that's basically how I read it) but the drafting is a bit contorted, when a simple statement about collections would have sufficed and would have helped to dispel any investor twitchiness.
Hope none of the doubters who post here took a short position in late Jan / early Feb :-) :-):-)
I note in the RNS that they talk about lease billings but make no mention of how much rent has been received / is outstanding.
There was no mention of the situation at My Space who I guestimate pay about £605,000 in rent pa.
I'm left feeling a bit twitchy about the financial situation.
Lease incentives are a means to incentivize tenants to sign up to long leases. They could involve a rent reduction (or even rent free) for the initial period of the lease. Another type of incentive would be funding support for repairs or enhancement of the property.
Anyone know what lease incentives mean? Also, are rent arrears really only 20 days or is that the value in current debtors? Putting aside the Home Reit issues slightly impacting SoHo, I am struggling to understand how SoHo has historically had a higher debtors but Civitas is more exposed historically to the approved registered providers under review.
FYI - I am a holder and looking to add more so just doing my diligence.
I use iWeb for my ISA which is owned/run by Halifax. I get full Dividend with no WHT in my ISA with them.
Would be surprised if Halifax was different as effectively the same company.
Just doubled my holding here - this is well undervalued and when the HOME situation gets resolved (as it will - one way or another) and the consequent indirect heat CSH is getting is ameliorated it will rise. Even with NAV reduced to 111p it still offers a 45% (ish) discount and as Punter64 says - yet another solid RNS trading update just published - plus over 9% divi while you wait. The macro housing situation is starting to settle (much less now screaming from the media), interest rates no longer look as if they will rise much further, power prices look like reducing later this year and only this morning it's reported that UK will likely escape recession.
You can wait six months until the mists have fully cleared and the SP is 80's - or get in now.
All IMO - GLA
Another solid update. Divi now 9.3% per year at current sp. NAV down slightly but at 111p still a long way north of the current sp. Plenty of upside here IMO.
That should have said.....bought....
Hope you're right....Just brought in.....
I think the next update should be out this week. It should make happy reading.
Tell us which share you are selling next....
Just to say I sold my holding yesterday (I needed the money elsewhere). The share price rose 7.82% in response! LOL.
I will return to the holders list soon because I think CSH should be a core holding for me. Short term absence. The yield helps....
GLA
CG
Thanks for that additional information riskingit; I use Halifax Share Dealing, if anyone has any experience with that?
Great update from CSH the other day and good to see the sp reacting positively.
You might also want to check with your broker - I use HL & Barclays, with HL the full payment is made in but with Barclays they reclaim it and pay it at a later date.
Thanks Edwina, that does make a big difference!
You get the full amount in an ISA. Full 1.425 per 3 months.
Actively considering buying an initial holding in CSH. I'm sure this will have been answered before somewhere, but can anyone tell me if I buy CSH shares from within an ISA share account, does the tax still get withheld automatically, or will it be paid gross to the account. i.e., do I receive the full 1.425 gross, or is it 1.14 net after withholding tax?
Many thanks if anyone can answer.
I was wondering why Lucy lightfoot had gone quiet
Lucy Loo is now claiming Civitas is some sort of ponzi on the other board.
Hey ho - as they say it takes two to make a market
I am sure that CIM feel under pressure. That’s natural, given the poor share price performance. So I would expect self-advocacy and a robust defence of the business model and performance. I’d be more worried if the RNS didn’t have this. But it does. On risk management etc, there’s a lot of detail in the 2022 Annual Report which is easily accessible. No one disputes that there are risks, as in any business, but opinions differ on whether these risks are manageable and already priced in.
I didn't think it was well-written to be honest.
There were large swathes of text related to immaterial trading (e.g. asylum accommodation). It would appear that CIM are under pressure because there was a lot of self-advocacy. The aged debt analysis was not clear at all - what is the KPI (which one would expect to be the weighted average from each tenancy agreement)
You have to question whether the business model of sub-letting the service provision is robust enough with so many regulatory issues - what is the risk management is in the event of these providers defaulting? I also noted comments about repairs provisioning. It only takes a few providers going belly-up with severely dilapidated property for covenants to be at risk