Impact Healthcare REIT (LSE: IHR)

Last close As at 15/06/2024

GBP0.85

−1.00 (−1.16%)

Market capitalisation

GBP358m

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.

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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)

185.2

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 0.9 5.4 (11.1)
Relative 3.3 (0.5) (17.9)
52 week high/low 95.1p/78.9p

Financials

Q124 update showed a continuation of the positive trends that contributed to the strong FY23 performance. Rental growth is driving income and capital values, while the operational and financial performance of tenants continues to strengthen. This is reflected in a record level of rent cover. With cash flow remaining strong, the Q1 DPS increased in line with the company’s full-year target of 6.95p (+2.7%). Including DPS paid, the Q124 NTA total return was 3.2%, building on the 10.5% FY23 return, the highest since listing in 2017. Across the portfolio, tenant operators have benefited from the continuing post-pandemic recovery in occupancy. With the performance of the turnaround assets improving, the operation of three (of seven) assets has been transferred to a new long-term tenant, paving the way for a resumption of rent payments in Q125.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2022A 45.4 38.6 32.6 8.4 10.1 11.3
2023A 53.1 46.0 34.5 8.3 10.3 10.6
2024E 56.2 48.5 34.6 8.3 10.3 8.6
2025E 59.4 51.6 38.4 9.3 9.2 8.2

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