Impact Healthcare REIT (LSE: IHR)

Last close As at 24/02/2024

GBP0.81

0.80 (1.00%)

Market capitalisation

GBP336m

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.

Latest Insights

View More
Impact Healthcare REIT_resized

Sector

Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Andrew Cowley

    Managing partner, Impact Health Partners

  • David Yaldron

    FD

  • Rupert Barclay

    Non-executive chairman

Balance Sheet

Forecast net cash (£m)

173.7

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (6.68) (3.46) (18.92)
Relative (8.84) (6.35) (16.46)
52 week high/low 102.0p/78.9p

Financials

Impact Healthcare REIT (IHR’s) Q323 NAV total return (TR) was 2.8%, taking the TR in the first nine months of FY23 to 8.5%. The 1.3% increase in NAV per share reflected a similar like-for-like gain in property values, driven by rent reviews, with the EPRA topped up and net initial yield broadly flat at 6.91% (Q2: 6.95%). For tenants, strong fee growth and higher occupancy continues to offset inflationary pressures. Rent cover across the portfolio remained strong and was 1.90x for the 12 months to end-Q323 (1.82x for the 12 months to end-Q223), and 100% of rent due in the quarter was received. Q3 DPS was in line with IHR’s full year target of 6.77p (109% covered by adjusted ‘cash’ earnings in the first half and 123% by EPRA earnings). With higher property values and reduced borrowing, the Q3 loan-to-value was slightly lower at 27%. 98% of drawn debt is now fixed/hedged with an average cost of 4.5%.

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 10.0 N/A
2022A 45.4 38.6 32.6 8.4 9.6 10.7
2023E 53.4 45.7 33.9 8.2 9.9 8.8
2024E 56.2 48.5 34.6 8.3 9.8 8.2

thematic

Real Estate

South African listed property sector

thematic

Financials

DACH Industrial & Logistic Property