Safe as houses

[LittleDorrit]

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.

[Raptor]

Moderator Message:
Their is soecific board for REITs. Moving from ITs. Raptor