Impact Healthcare REIT

LN: IHR

£313.2m market cap

98.2p last close

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.

Investment summary

UK care home demand is driven by a growing elderly population with increasing care needs rather than by the economy. In the face of COVID-19, the operational performance of Impact’s tenants has thus far been reassuring with no impact on rent collection or quarterly DPS, and we expect no material effect on the positive long-term fundamentals. Indeed, by highlighting the essential role that the sector performs, the pandemic may have the positive effect of permanently improving resident funding.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 17.3 N/A 12.4 6.5 15.1 18.9
2019A 24.0 N/A 17.6 6.9 14.2 16.7
2020E 30.4 N/A 22.6 7.1 13.8 15.6
2021E 35.3 N/A 26.5 8.3 11.8 12.5
Share price graph
Balance sheet
Forecast net debt (£m) 67
Forecast gearing ratio (%) 19
Price performance
%
1m
3m
12m
Actual 1.2 3.4 (9.1)
Relative* 1.0 (10.2) 8.6
52-week high/low 114.0p/62.0p
*% relative to local index
Key management
David Yaldron FD
Andrew Cowley Managing partner, Impact Health Partners
Rupert Barclay Non-executive chairman