Impact Healthcare REIT

LN: IHR

Market Cap£424m

Last Close 121p

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

With the portfolio continuing to perform as expected, unaudited Q121 NAV per share increased to 110.66p (Q121: 110.48p) and including DPS paid the quarterly NAV total return was 1.6%. A Q221 DPS of 1.6025p was declared, in line with the FY21 target of 6.41p (+1.9%). Rents and capital values continue to benefit from RPI-linked rent reviews and rents continue to be received in full as they fall due. Investment continued in the quarter with the group committing to two properties, a high-quality operational home and a forward funding arrangement, both let/pre-let to a new (13th) tenant, while work commenced on a significant asset management project. With a low LTV of c 14% including the £35m proceeds of the April equity issue, and a strong and growing pipeline of acquisition opportunities, we expect further accretive growth.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 24.0 19.4 17.6 6.9 17.5 20.6
2020A 30.8 25.6 23.1 7.3 16.6 18.4
2021E 37.1 31.3 28.0 8.7 13.9 15.1
2022E 43.1 37.1 33.3 9.5 12.7 13.7
Industry outlook

Care home demand is driven by demographics and care needs with a shortage of quality care homes suggesting strong investment demand in years to come. The pandemic presents a significant near-term challenge to the sector but does not change the underlying demographic-driven fundamentals while highlighting its critical role in supporting the NHS and the importance of long-term investment.

Last updated on 21/09/2021
Content on Impact Healthcare REIT
Impact Healthcare REIT – Resilient growth strategy
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Impact Healthcare REIT – FY21 DPS target increased
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Share price graph
Balance sheet
Forecast net cash (£m) 103.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 5.4 9.8 18.1
Relative* 6.8 9.7 (5.1)
52-week high/low 122.2p/97.2p
*% relative to local index
Key management
David Yaldron FD
Andrew Cowley Managing partner, Impact Health Partners
Rupert Barclay Non-executive chairman