Civitas Housing Association has reported a healthy set of financial results, boosting its portfolio value by 24%, for the six-month period ended 30 September.
The supported living and social housing REIT has seen its portfolio value increase to £841.5m.
Its NAV per share grew 1.1% to 107.2p while its rent roll rose by 25% to £46.5m, and rental income jumped 45% to £22.7m.
The firm has 599 properties providing homes to more than 4,000 people.
The firm said it was working with housing associations and the regulator of social housing on “specific risks that require improvement”.
Civitas shares have plunged around 20% since the start of the year after a series of rulings by the regulator, which has issued negative notices against several big housing associations used by the REIT.
In April, the regulator published a critical report raising questions over the business model under which some financially challenged housing associations enter into long property leases with REITs like Civitas.
The regulator’s key concern was that the leasing system could leave housing associations financially weak and potentially unable to fulfil their obligations to tenants.
Michael Wrobel, non-executive chairman of the company, said: “The company is pleased to report a strong set of results with our key performance objectives met.
“The supply-demand imbalance in specialist supported accommodation continues to be severe and driven by strong demographic trends resulting in specialist supported living being one of fastest growing sub-sectors in healthcare real estate.
“We also continue to play a key role in helping and supporting the increasing professionalisation of the sector and assisting our housing association partners as they seek to meet their regulatory obligations.”
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