Full year results |

21 Mar 2018

Impact Healthcare REIT plc (ticker: IHR), a REIT investing in high-quality healthcare real estate assets in the UK, today announced the Company’s annual results for the period ended 31 December 2017.

Financial Highlights

  • Dividends per share of 4.50p paid or declared for the period to 31 December 2017, delivering against the target set at the time of the IPO.
  • Paid and declared dividends 97.56% covered by adjusted earnings per share for the full period.
  • Net asset value of 100.65p per share as at 31 December 2017.
  • Portfolio independently valued at £156.17 million as at 31 December 2017, representing an uplift on the aggregate purchase price and costs of 1.5%.
  • Contracted annual rent of £11.34 million calculated from Admission, increased to £11.60 million following the acquisition of Saffron Court in June 2017 and £11.86 millionfollowing the commitment to fund capital improvements at two homes.
  • Profit before tax in the period between inception and 31 December 2017 of £9.46 million.
  • The Group had no debt as at 31 December 2017.
  • Raised £160.2 million of equity through a fully subscribed initial public offering and vendor issue and a further £32.6 million through a second equity raise in November 2017. The majority of the proceeds were invested by the period end and the balance is being committed to income-producing capital improvements and acquisitions.
  • 7.19% EPRA NAV total return. EPRA NAV total return for the period from the IPO to 31 December 2017 was 7.19%, compared to 10.79% for the FTSE EPRA/ NAREIT UK REITs Index.

Operational Highlights

  • Acquired 57 care homes with 2,527 beds, at an aggregate net purchase price of £152.20 million.
  • The Group has a contracted rent roll of £11.86 million and a portfolio market value of £156.17 million delivering an investor contracted yield of 7.59% (compared to an EPRA NIY of 7.02%).
  • Impact has maintained a strong asset management pipeline with planning permission to add 249 beds to the portfolio with discussions underway with planners for a further 215 beds. During the period, the board approved projects for the first 92 beds, at a cost of £7.94 million.

Post balance sheet highlights

  • The Group’s initial asset management project at Turnpike is due to complete in April 2018, adding 25 of the initial 92 beds approved.
  • Conditional contracts were exchanged on 11 January 2018 to acquire 234 beds across three assets in the North East of England.  The first of these three assets completed on 16 March 2018.
  • The Seed Portfolio is subject to annual RPI uplifts with a floor of 2% and cap of 4%. The uplift was due in March 2018 and increased the rent roll from £11.9 million to £12.3 million.
  • Impact Health Partners LLP is our Investment Adviser. It sources investments for the company, reviews opportunities and makes recommendations to the board, and the Investment Manager, carries out the transactions the board approves and monitors the progress of our assets. It also recommends the asset management strategy for board approval and then implements it.
  • Carne Global AIFM Solutions (C.I.) Limited is our AIFM. It is responsible for the portfolio and risk management services for the Group.

Rupert Barclay, non-executive Chairman of Impact Healthcare REIT plc, commented:

“Impact Healthcare is a well-managed investment company, combining a good yield with attractive upside potential. We know that many of our shareholders prioritise a safe dividend and we believe that the quality of our initial tenant group, our secure and well-covered rental stream and our prudent approach to gearing limits downside risk. We have a pipeline of opportunities to add value, through asset management and acquisitions, and have made good progress since the period end.

The fundamentals of our market are strong, with growing demand for beds and limited supply. Care is an essential service and the government needs to continue to relieve the pressure on adult social care and hospitals. Residential care homes will be an important part of the solution and we therefore see good prospects for the Group. The Company remains well placed to continue delivering attractive and sustainable returns to our shareholders for 2018 and beyond.”

For further information please contacts:

Impact Health Partners LLP via Newgate Communications
Mahesh Patel
Andrew Cowley

Winterflood Securities Limited
Joe Winkley
Neil Langford
Tel: 020 3100 0000

Newgate Communications (PR Adviser)
James Benjamin
Anna Geffert
Lydia Thompson
Tel: 020 7680 6550
Email: impact@newgatecomms.com

The Company’s LEI is 213800AX3FHPMJL4IJ53.

Further information on Impact Healthcare REIT is available at www.impactreit.uk

A Company presentation to analysts and will be held at 11:00am today at:

Sky Light City Tower
50 Basinghall Street
London, EC2V 5DE

The presentation will also be accessible via a live conference call and on-demand via the Company website: http://www.impactreit.uk/document

Those wishing to attend the presentation or access the live conference call are kindly asked to contact Newgate at impact@newgatecomms.com or by telephone on +44 (0) 20 7680 6550.

In addition, a recorded webcast of this meeting and the presentation will also be available to download from the Company’s website: www.impactreit.uk.

The Annual Report and Accounts will today be available on the Company’s website at www.impactreit.uk. In accordance with Listing Rule 9.6.1, copies of these documents will also be submitted today to the UK Listing Authority via the National Storage Mechanism and will be available for viewing shortly at www.morningstar.co.uk/uk/NSM.

Hard copies of the Annual Report and Accounts will be sent to shareholders, along with the notice for Annual General Meeting 2018, on or around 28 March 2018.

The Group is a real estate investment trust (“REIT”) which aims to provide shareholders with an attractive return, principally in the form of quarterly income distributions and with the potential for capital and income growth, through exposure to a diversified portfolio of healthcare real estate opportunities, in particular residential care homes. The Group’s investment policy is to acquire, renovate, extend and redevelop high quality healthcare real estate assets in the UK and lease those assets primarily to healthcare operators providing residential healthcare services under full repairing and insuring leases.
The Group is targeting a fully covered aggregate dividend of 6.0 pence per share for the first 12 months from Admission which equates to a yield of 6 per cent. per annum on the Issue Price, payable in quarterly instalments(1).
The Group’s Ordinary Shares were admitted to trading on the main market of the London Stock Exchange, Specialist Fund Segment, on 7 March 2017.
1 This is a target only and not a profit forecast and there can be no assurance that it will be met and it should not be taken as an indication of the Group’s actual or expected future results.