23^rd November 2017            

Civitas Social Housing PLC

("Civitas" or the "Company")

Interim Results

Period from 18^th November 2016 (IPO) to 30^th September 2017 (the "Period")

Civitas Social Housing PLC (Lon:CSH), the first London listed REIT dedicated to investing into regulated social housing in England and Wales, is pleased to announce its interim results for the period ended 30^th September 2017.

Financial Highlights

·    Investment Portfolio independently valued at £343.3m

·    +11.8% increase in Portfolio NAV per ordinary share ("Share"): 109.6p as at 30^th September 2017¹

·    +5.3% increase in IFRS NAV per Share: 103.2p as at 30^th September 2017

·    +13.1p per Share Earnings based on Portfolio NAV: based on comprehensive income and property revaluations

·    +6.7p per Share Earnings based on IFRS NAV: based on comprehensive income and property revaluations

·    Total of 2.25p per Share of dividends declared over the Period

·    Contracted Annualised Rent Roll: £17.4m based upon £285.3m capital deployed at the end of the Period

·    Average Net Initial Yield: 6% before property purchase costs

·    Weighted Average Unexpired Lease Term:24.3 years

Operational Highlights:

·    282 properties acquired in the Period, across 83 Local Authorities, based on long-term leases signed with 10 Housing Associations, providing dependable accommodation for 1,827 tenants supported by 50 care providers

·    The Good Economy, the social advisory firm, in their first independent  Social Impact Report on Civitas noted encouraging evidence that Civitas can deliver on its social objective of increasing the provision of high quality social homes to improve the quality of life for low income and vulnerable people in social need while achieving financial returns for investors 

Post Balance Sheet Highlights

·    29 properties acquired post the Period, totalling £16.2million

·    £52.2m 10 year fixed rate term loan facility from Scottish Widows

·    £302m of equity raised through a C share issue

·    £40m 3 year floating rate revolving credit facility from Lloyds Bank

1.        This NAV has been restated from the NAV of 109.8p per Share announced on 18 October to correct a clerical error.

Michael Wrobel, Non-Executive Chairman of the Company, commented:

"The Company's financial, operational and social performance over the period has been very encouraging. Civitas continues to benefit from being a first mover and being able to invest in scale. It has achieved what it initially set out to; creating a property portfolio that offers investors the opportunity of long-term income and the potential for capital growth, whilst providing tenants with high quality stable homes. With the addition of the funds raised through the recent C share issue and debt issuance, we look forward to further capitalising on our pipeline of opportunities".

A copy of interim report is available from the Company's website (www.civitassocialhousing.com) and will be submitted to the National Storage Mechanism (http://www.morningstar.co.uk/uk/nsm) and will shortly be available for inspection.

ENDS

For further information, please contact:

Civitas Housing Advisors Limited

Paul Bridge                Tel: +44 (0)20 3709 4622

Andrew Dawber       Tel: +44 (0)20 3709 4626

Cenkos Securities PLC

Sapna Shah               Tel: +44 (0)20 7397 1922

Tom Scrivens            Tel: +44 (0)20 7397 1915

Pagefield Communications Limited

Philip Dennis          Tel: +44 (0)7947 868206

David Leslie            Tel: +44 (0)7584 070274

About Civitas

Civitas Social Housing PLC was the first Real Estate Investment Trust offering pure play exposure to social housing in England and Wales.  The Company is managed by Civitas Housing Advisors Limited.  The Company's Ordinary Shares are listed on the premium listing segment of the Official List of the Financial Conduct Authority and were admitted to trading on the main market for listed securities of the London Stock Exchange in November 2016. The Company's C Shares are listed on the standard segment of the Official List of the Financial Conduct Authority and were admitted to trading on the main market for listed securities on the London Stock Exchange in November 2017.

Chairman's Statement

I am pleased to present the Company's first unaudited interim results for the period from its listing on 18 November 2016 to 30 September 2017.

The Company's objective is to provide shareholders with an attractive level of income, which is expected to grow broadly in line  with inflation, together with the potential for capital growth. The Company invests in a portfolio of Social Homes, which benefit from inflation adjusted long-term leases or occupancy agreements with Housing Associations or Local Authorities.

The Company's launch via an oversubscribed Initial Public Offering (IPO) raised gross proceeds of £350 million. The Company was the first REIT to be listed on the London Stock Exchange offering a focused exposure to built Social Housing. It has since established itself as a leading owner of built Social Homes, providing a considerable number of people with high quality homes that suit their particular needs on a long-term basis.

As at 30 September 2017, the Civitas' portfolio comprised 282 properties housing 1,827 tenants, leased to 10 Registered Providers, involving 83 Local Authorities and 50 Care Providers with a focus  on Specialist Support Housing. These investments were made using the net proceeds of the IPO. The current portfolio benefits from a weighted average unexpired lease term of 24.3 years. Approximately 25% of the properties held are new  to the Social Housing sector. Since 30 September 2017 the Company has acquired a further 29 properties, housing 115 tenants and made significant further progress on which I report later.

Dividends

On 4 May 2017, the Company declared its maiden interim dividend of 0.75p per  Share, and declared a further two  quarterly dividends of 0.75p  in both July and October in respect of the three month periods to 30 June 2017 and 30 September 2017  respectively.

The target set out at launch   was to pay dividends totalling 3p per share for the period through to 31 December 2017,  targeting 5p per  annum thereafter which the Company expects to increase broadly in line with inflation over time.

Financial results

The Company's financial performance over the period has been very encouraging.

On a Portfolio Valuation basis, which assumes that properties are held within SPVs and valued as a discreet portfolio, the unaudited Portfolio Net Asset Value per  Share as at 30 September 2017  was  109.6p. This represents an increase since IPO (based on 98.0p per Ordinary Share) of 11.8%.

On an IFRS Valuation basis, which assumes that properties are  valued individually and structured without the benefit of the SPVs in which they are  actually held, the unaudited IFRS Net Asset Value per  Share as at 30 September 2017  was 103.2p. This represents an increase since launch (based on 98.0p per Ordinary Share) of 5.3%.

The Group has now reached operating profitability: the operating profit for the Group excluding revaluations for the period from 18 November 2016  to 30 September 2017  was

£2.6 million, with total comprehensive income of £45.9 million on a Portfolio Valuation

basis and £23.6  million on an IFRS Valuation basis implying Net Earnings per  Share for the period of 13.1p  and 6.7p,  respectively. Approximately 99% of the Company's income is ultimately derived from either local or central Government, which is paid directly to the Registered Providers.

Progress since the end of September

We are pleased that the Company is on course to achieve its target to be fully invested within the timescales indicated at IPO and has delivered on its stated objectives through investment in a high quality diversified portfolio of Social Homes throughout England and Wales.

C Share Issue

The Board is delighted that shareholders have supported our growth plans by subscribing for a further £302 million of equity in November 2017.  We believe that this reflects the Company's prospects and its consistent delivery against its objectives since it was listed. We believe the issue will place the Company in the best possible position to capitalise on the pipeline of potential investment opportunities over the next 12 months; thereby continuing to deliver for tenants and shareholders alike.

Loan financing

On 3 November 2017,  the Company agreed a £52.5  million term loan  facility with Scottish Widows  Limited, with a term of 10 years, an interest rate of 2.99% representing leverage of 30% (as calculated on the loan to market value  of the property portfolio). This facility is secured against certain of the Group's properties and the SPVs in which those properties are held and forms part of the programme to achieve an overall level of indebtedness in the order of c.25% loan to market value.

On 16 November 2017, the Company further agreed a £40 million revolving credit facility with Lloyds Bank plc, available for a term of three years, at a floating rate above 3-month LIBOR. This facility is secured against certain of the Group's properties and the SPVs in which those properties are held.

Negotiations are in process with additional lenders in relation to further facilities, expected to be announced in due course.

The additional financing will allow the Company to continue its strong deployment momentum and the Board considered the terms of the facilities fair and reasonable.

Outlook

There remains a chronic shortage of all forms of Social Housing in the UK, including specialist Social Housing, with estimated demand from 4.5 million people awaiting allocation of a social home. We continue to build the pipeline of quality investments that meet our investment criteria. Our Investment Advisor has identified more than £500 million of Social Homes  that may be acquired by the Group  over  the next 12 months, of which approx.  £100 million is expected to be available in the near term. Our Investment Advisor will continue to implement a disciplined policy focused on quality opportunities, whilst rejecting others on the grounds of quality, location and value for money.

The Company has strengthened its position further through additional investment. We continue to be the only listed investment company focused on this sector that is not exposed to development and forward funding.

The Board is grateful for the support and encouragement of the Company's shareholders and the hard work of the Investment Advisor and our other advisors.

Michael Wrobel

Chairman

23 November 2017

Portfolio

As at 30 September 2017

The Company's Portfolio is spread across England and Wales, reflecting the Company's objective of creating a coherent yet diversified portfolio.

Investment Advisor's Report

"We are pleased to present our Investment Advisor's report and to reflect on a first year of substantial progress. Building on our first mover advantage we have created a diversified portfolio of high-quality Social Homes, achieved a number of important social impact gains and in doing so have invested the great majority of the capital raised at the time of IPO"

Paul Bridge, Chief Executive Officer, Civitas Housing Advisors Limited

CHA, the Investment Advisor to the Company, is pleased to report on progress in the period from IPO in November 2016 to 30 September 2017.

During this period we have acquired 282 properties, leased to 10 Registered Providers and housing 1,827 tenants across 83 Local Authorities, with care support provided by 50 Care Providers. Since the period end we have acquired a further 29 properties housing 115 tenants and, as a result when taken together with the pipeline, all capital raised at IPO is either deployed or allocated to specific acquisitions. As a result the Company is on track to meet the dividend targets set at IPO of 3p per share in aggregate for the period from IPO to 31 December 2017 and 5p per share annually thereafter.

Investment Objective

An investment in the Company enables investors to gain exposure to a diversified portfolio of Social Homes in England and Wales.

The Investment Objective is to provide shareholders with an attractive level of income, together with the potential for capital growth from investing in a portfolio of Social Homes, which benefit from inflation-adjusted long-term leases and occupancy agreements with Registered Providers.

After 2017 the Company aims to deliver a targeted dividend of 5p per annum, which it expects to increase broadly in line with inflation and with the objective for that to be paid from income generated as opposed to capital growth of the portfolio.

Investment Strategy

The Group has acquired and will continue to seek to acquire existing Social Homes in locations across England and Wales where the Investment Advisor believes there to be long-term demand. As the Social Homes sector is highly fragmented, developing long-term relationships with Housing Associations, Local Authorities, Care Providers and private owners is important in acquiring suitable portfolios of Social Homes.

This is aided by the fact that the Group was the first REIT to be listed on the London Stock Exchange to offer a focused exposure to Social Housing in England and Wales and as such is seen to have a first mover advantage. It is also supported by a broadly based team within the Investment Advisor including a number of figures from within the Social Housing sector who have held senior roles and positions of responsibility.

The depth of relationships that have been established in the sector is reflected in the various long-term arrangements that the Investment Advisor has been able to enter into to secure high quality properties at attractive yields. This complements the broader array of relationships that have led to significant incoming investment opportunities and enabled the Group to acquire all properties off-market to date.

The Social Housing sector contains a variety of property types and tenures. At the time of IPO the Group stated that it would invest at least 75% in Specialist Supported Housing. That has proven to be the case and at the date of this report almost the entire portfolio is invested in Specialist Supported Housing.

As part of the due diligence programme undertaken by the Group it is frequently the case that the legal arrangements between the various parties within a Specialist Supported Housing project will be updated and revised to enable the Group to reach its target of receiving investment grade cash flows. This will be undertaken prior to the announcement of a purchase and typically contributes to any increase in value of the property reported subsequently at the quarterly valuation date.

The Group also seeks to ensure that all acquired properties are of a high standard and where necessary it will agree a schedule of works by way of improvement that will typically be undertaken by the respective Housing Association and monitored by the Group's property advisors, Jones Lang LaSalle Ltd.

The need for Social Housing

The UK Housing market continues to feature prominently on the national agenda, with all major political parties indicating the provision of housing is a priority. There is broad consensus that the UK requires up to 300,000 new homes each year to meet current and projected demand.

The Department of Communities and Local Government statistics as of March 2017 show that housing supply has been on an upward trajectory in recent years with 162,880 completed units in 2016/17 but this still falls well below the widely accepted target.

At the same time the lack of supply and funding, together with changes to how welfare is delivered, means housing options for vulnerable people remain limited. Indeed the need for

Specialist Supported Housing continues to grow (currently around 10,000 people with a learning disability are on waiting lists for housing with support) as councils struggle to rehouse vulnerable people within suitable community settings (an obligation placed on adult social services teams under the Care Act 2014).

This is further reflected by the existence and cost of NHS "bed blocking" which is estimated to be in the region of £900 million per annum. As a result, patients are left in hospital with needs that would be better and more cost-effectively served via care in the community. Lord Patrick Carter's 2016 review included an estimate of the cost of caring for all delayed transfer patients in a residential care setting at £835 million over five years to 2020/21, compared to c.£3.3 billion for acute care in hospitals; this is before considering the benefits for patients in terms of quality of care which are significant.

Encouragingly, and in line with our expectations, the Government announcement of 25 October 2017 reversed an earlier proposal to cap social rents at the local housing allowance rate, providing reassurance to existing providers; and accepting that specialist housing costs more to deliver than general needs housing. The Government has further announced on 4 October 2017 that for the five years from 2020 the general needs rent settlement will be set at CPI plus 1%.

Specialist Supported Housing

The Group has and will continue to seek to acquire Specialist Supported Housing portfolios, which includes housing for some of the most vulnerable in society. Typically, government funding for each tenant under this categorisation represents 100% of the cost. This includes housing (rent and property maintenance) as well as the cost for care (paid to the Care Provider and usually representing the largest element of the overall funding). Costs are paid from the Department for Communities and Local Government and the Department of Work and Pensions to the relevant Local Authority, which then passes funds on to the Registered Provider and Care Provider.

Net rental yields in the Specialist Supported Housing sector are typically in the region of 5.5% to 6.5% and are indexed in line with CPI or CPI+1%. Larger portfolios managed by major Housing Associations may trade below these levels.

In each instance the Local Authority is responsible for paying the Care Provider directly

for its provision of services to the tenant. The Care Provider itself comes under the regulation of the Care Quality Commission. The Registered Provider typically enters into a service level agreement with the Care Provider. The Group does not undertake responsibility for the operations of the care provider or care for the individual tenants.

Long-term leases and occupancy agreements

We expect that the Group will continue to typically enter into long-term inflation adjusted

leases or in certain instances long-term inflation adjusted occupancy agreements for periods in excess of 20 years with Registered Providers, where all management and maintenance obligations will be serviced by the Registered Providers.

The nature of the lease arrangements with the Registered Providers will be such that the Registered Providers, and not the Company, will be the landlord under applicable landlord and tenancy legislation.

Where the counterparty is a Local Authority, or where we believe it is in the Group's interest, the Group may consider unexpired leases of not less than 10 years. This may be due to the constraints on Local Authorities from entering into longer terms arrangements.

The Investment Pipeline

We have established a significant investment pipeline and identified a number of new assets which meet the Investment Objective and Investment Strategy, including off-market portfolios identified through our contacts and relationships in the sector.

These assets come from an increasingly broad range of sources reflecting the enhanced profile of the Group and CHA within the Social Housing sector. Opportunities are being sourced through Registered Providers (due to mergers, stock rationalisation and capital release), Local Authorities, Care Providers and private companies. We have strengthened the Group's relationship with particular Registered Providers, which is enabling the Company to benefit from more investment opportunities from these same Registered Providers. As part of this broadening network CHA, on behalf of the Company, has established commercial understandings with specific Registered Providers, independent owners, developers and suppliers of Social Homes including Care Providers, which are expected to deliver a significant quantity of opportunities to acquire Social Homes. Together the various sources of pipeline opportunities account for more than £500 million of Social Homes that have the potential to be delivered over the next 12 months, with approximately £100 million potentially in the near term.

As part of the Company's plans to seek further diversification within the specialist areas of the regulated Social Housing sector, we anticipate that pipeline transactions will include not just homes for tenants with care needs based around learning disability and autism but also dependency, homelessness and the desire to release hospital beds through the use of "step down" accommodation associated with the NHS. In each case the Company intends to operate the same model with a Registered Provider entering into a long-term arrangement with the Company and providing on the ground property services.

It should be noted that the Company may or may not proceed with the acquisition of any such pipeline opportunities. The Company currently has no mutually binding contractual obligations with Registered Providers or other potential vendors of Social Housing for the acquisition of Social Homes, but we are confident that sufficient suitable housing portfolios will be identified, assessed and acquired to substantially invest or commit the net issue proceeds from the C Share raise and the proceeds of the debt raise within 12 months following admission. This confidence is based in part on the success that the Group has achieved in investing the net IPO proceeds and in the commercial understandings already established.

We look forward to continued progress over the forthcoming months and to deploying further capital to improve the quality and availability of Social Housing across England and Wales.

Civitas Housing Advisors Limited

Investment Advisor

23 November 2017

Key Performance Indicators (KPIs)

Principal risks and uncertainties

Directors' responsibilities for the interim financial statements

The directors confirm that to the best of their knowledge this condensed set of consolidated financial statements has been prepared in accordance with IAS 34 as adopted by the European Union and that the operating and financial review on pages 4 to 14 includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8. of the Disclosure and Transparency rules of the United Kingdom's Financial Conduct Authority namely:

• An indication of important events that have occurred during the first 11 months since admission on 18 November 2016 and their impact on the condensed consolidated financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

• Material related party transactions since admission on 18 November 2016.

For and on behalf of the Board.

Michael Wrobel

Chairman

23 November 2017

Independent review report to Civitas Social Housing PLC

Report on the interim condensed consolidated financial statements

Our conclusion

We have reviewed Civitas Social Housing PLC's condensed consolidated financial statements (the "interim financial statements") in the Interim Report of Civitas Social Housing PLC for the period 18 November 2016 to 30 September 2017. Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared,  in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

What we have reviewed

The interim financial statements comprise:

·    The Condensed Consolidated Statement of Financial Position as at 30 September 2017;

·    The Condensed Consolidated Statement of Comprehensive Income for the period then ended;

·    The Condensed Consolidated Statement of Cash Flows for the period then ended;

·    The Condensed Consolidated Statement of Changes in Equity for the period then ended; and

·    The explanatory notes to the interim financial statements.

The interim financial statements  included in the Interim Report have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

As disclosed in note 2 to the interim financial statements, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

Our responsibilities and those of the directors

The Interim Report, including the interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Interim Report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the Interim Report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What a review of interim financial statements involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

PricewaterhouseCoopers LLP

Chartered Accountants London

23 November 2017