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.
Real Estate |
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Real Estate |
Update
Real Estate |
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Real Estate |
Update
Andrew Cowley
Managing partner, Impact Health Partners
David Yaldron
FD
Rupert Barclay
Non-executive chairman
Forecast net cash (£m)
173.7
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 3.2 | (7.3) | (9.8) |
Relative | 0.0 | (9.7) | (15.8) |
52 week high/low | 101.8p/78.9p |
Ahead of FY23 results to be published in March, the Q423 update showed a continued strengthening in operational and financial tenant performance, reflected in a record level of rent cover (Q4: 2.2x) and 100% rent collection. With cash flow remaining strong, we expect the FY23 DPS of 6.77p (+3.5%) was fully covered by adjusted ‘cash’ earnings and the FY24 DPS target has been set at 6.95p (+2.7%). Contracted rents increased 13% in the year, to £49m, driven by inflation-linked rent reviews and a significant and accretive acquisition early in the period. Tenant operators have benefited from the continuing post-pandemic recovery in occupancy (to 88.2% vs 87.4% a year earlier) and strong fee growth (c 14%). The seven homes that were previously leased to Silverline are showing improved performance under the new operator.
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 | 10.3 | N/A |
2022A | 45.4 | 38.6 | 32.6 | 8.4 | 9.9 | 11.0 |
2023E | 53.4 | 45.7 | 33.9 | 8.2 | 10.1 | 9.0 |
2024E | 56.2 | 48.5 | 34.6 | 8.3 | 10.0 | 8.4 |