Impact Healthcare REIT

LN: IHR

Market Cap£482m

Last Close 119.2p

Impact Healthcare REIT invests in a diversified portfolio of UK healthcare assets, particularly residential and nursing care homes, let on long leases to high-quality operators. It aims to provide shareholders with attractive and sustainable returns, primarily in the form of dividends, underpinned by structural growth in demand for care.

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Investment summary

Impact raised £22.3m at 117p per share in its recent equity raise, amidst challenging market conditions, additional to pre-existing available capital of c £70m, net of all commitments. Including debt to be put in place alongside planned acquisitions this gives the company meaningful resources to address, in part, a strong pipeline of opportunities. At the time of the issue these amounted to £169m in advanced negotiation. The Q122 NAV update showed the company continuing to perform strongly supported by structural factors, including long-term inflation linked leases and sustainable and affordable rents. Rolling annual average rent cover was 1.9x to end-Q122 and rents have consistently been collected in full. Q122 NAV per share increased 2.2% to 114.9p and including DPS paid the quarterly total return was 3.6%. The FY22 DPS target of 6.54p represents a yield of 5.6% on the issue price.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 30.8 25.7 23.1 7.3 16.3 18.1
2021A 36.4 30.9 27.4 8.1 14.7 17.2
2022E 43.8 37.4 33.1 8.8 13.5 12.0
2023E 50.6 43.8 37.0 9.6 12.4 12.2
Industry outlook

Care home demand is driven by demographics and care needs and benefits from supportive demand fundamentals including increasing requirements from a rapidly ageing population for high quality care and a need to reduce pressure on high-cost, medical care providers in the NHS.

Last updated on 08/08/2022
Content on Impact Healthcare REIT
Impact Healthcare REIT – Successfully growing with tenants
Real Estate | research Outlook | 9 May 2022
Diamond House
Impact Healthcare REIT – Positive Q421 returns
Real Estate | research Update | 9 February 2022
Diamond House
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Share price graph
Balance sheet
Forecast net cash (£m) 172.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.4 (4.6) 1.7
Relative* (1.9) (5.8) 0.6
52-week high/low 127.0p/108.0p
*% relative to local index
Key management
David Yaldron FD
Andrew Cowley Managing partner, Impact Health Partners
Rupert Barclay Non-executive chairman