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Currency in GBP
Last close As at 09/06/2023
GBP0.98
▲ −1.10 (−1.11%)
Market capitalisation
GBP408m
Impact Healthcare REIT (IHR) 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.
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.
Director, Financials
Andrew Cowley
Managing partner, Impact Health Partners
David Yaldron
FD
Rupert Barclay
Non-executive chairman
Forecast net cash (£m)
176.9
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (0.5) | (1.3) | (20.5) |
| Relative | 1.7 | 2.9 | (19.7) |
| 52 week high/low | 124.0p/90.1p |
IHR’s strong financial and operational performance continued through Q123, benefiting from the resilience and growth of the portfolio and indexed rent increases. Meanwhile, earnings are significantly protected from interest rate increases with the costs on 80% of debt fixed/hedged. FY22 DPS was fully covered, 128% by EPRA earnings (+4% per share) and 109% by adjusted cash earnings (+6%) and a Q123 DPS of 1.6925p is in line with the FY23 target of 6.77p (+3.5%). Tenant rent cover remains strong at c 1.8x and we do not believe that the single tenant in arrears is indicative of wider tenant stress as strong fee growth and rising occupancy continues to provide an offset to inflationary pressures. With the property valuation yield little changed in Q123, rent growth generated a positive 1.8% property gain and unaudited NAV per share increased 2.2% to 112.6p. Including DPS paid, the three-month NAV total return was 3.7%.
| Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 36.5 | 31.0 | 27.4 | 8.1 | 12.1 | N/A |
| 2022A | 45.4 | 38.6 | 32.6 | 8.4 | 11.7 | 13.0 |
| 2023E | 53.1 | 45.1 | 35.2 | 8.5 | 11.6 | N/A |
| 2024E | 55.5 | 47.2 | 36.5 | 8.8 | 11.2 | 12.1 |
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