Half year results 2019 |

03 Sep 2019

Impact Healthcare REIT plc (ticker: IHR), the real estate investment trust which gives investors exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes, is today reporting its half year results for the six month period from 1 January 2019 to 30 June 2019.

·      Successful implementation of new progressive dividend policy. Paid dividends of 3.09p per share in respect of the first half of the year, a 3% increase on H1 2018, in line with target.

·      Dividends well covered by our EPRA earnings per share, which increased 12.1% to 3.62p (H1 2018: 3.23p).

·      Portfolio valuation increased by 21.3% to £271.6 million as at 30 June 2019 (as at 30 June 2018: £184.3 million), reflecting £39.5 million of acquisitions, £3.1 million invested in capital improvements and a value uplift of £5.2 million. The value uplift was driven by rent increases and the Group’s investment in capital improvements.

·      NAV per share increased 3% to 104.67p (30 June 2018: 102.03p).

·      NAV total return for the period of 4.39%, composed of a dividend paid in the period of 3.04p per share and 1.49p per share growth in NAV.

·      Total expense ratio reduced 12% to 1.51% (H1 2018: 1.71%).

·      Delivered a 29% increase in profit before tax to £10.94 million (30 June 2018: £8.47 million).

·      The Company successfully raised £100 million of new equity from its significantly oversubscribed placing in May 2019, 85% of which has now been committed.

·      Signed a £25 million debt facility during the period taking total debt facilities available to £75 million, with £25 million drawn at the period end, resulting in an LTV ratio of 7.67%, down from 11.2% as at 30 June 2018.


Operational highlights

·      Acquired nine properties with 471 beds in the period ended 30 June 2019, adding two new tenants, taking the total number of tenants to eight3, and growing the number of properties in the portfolio to 81 with a total of 3,924 beds.

·      Grew our contracted rent roll by 49% to £21.6 million (30 June 2018: £14.5 million).

·      Weighted average unexpired lease term (“WAULT”) of 19.6 years at 30 June 2019.

·      Rent reviews in the period added £0.4 million to contracted rent, representing a 2.41% increase on the associated portfolio.

·      100% inflation linked leases.


Post balance sheet highlights

·      Completed the acquisition of two homes in Devon and Oxfordshire, adding a further 91 beds to the portfolio.

·      Exchanged contracts on a portfolio of two homes in Suffolk with a further 98 beds and adding a new tenant.

·      Solicitors have been instructed in respect of a number of other transactions and the Group remains confident that it will continue to identify and execute on further acquisitions, which meet the Company’s investment criteria and return profile and are expected to deliver further value for shareholders. The Group continues to exercise robust capital discipline, to deliver value at the point of acquisition or investment.


Rupert Barclay, Chairman of Impact Healthcare REIT PLC, commented

“This was a period of continued, but measured growth in line with the strategy we set out at IPO. These strong first half results give the Company good momentum going into the second half and make us well placed to continue to deliver value in the short and longer term.

We appreciate the support existing and new shareholders gave us in the equity placing we closed in May, the proceeds of which have given us the capacity to bring further high-quality assets into the portfolio, increasing our diversification and reducing risk.

We have strong relationships with a growing number of high-quality tenants, who offer an essential regulated service and provide good care. This in turn ensures the Group has a secure income stream.

This stands us in good stead in an uncertain economic and political environment, including where the outcome of Brexit negotiations is still uncertain, and underpins our new progressive dividend policy and total return target, which reflect our confidence in the Group’s prospects.”


Please see the attached document for the full RNS release.


For further information please contact:

Impact Health Partners LLP via Maitland/AMO
Mahesh Patel
Andrew Cowley

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

RBC Capital Markets
Rupert Walford
Matthew Coakes
Tel: 020 7653 4000

Maitland/AMO (Communications Adviser)
James Benjamin
Andy Donald
Tel: 020 7379 5151
Email: impacthealth-maitland@maitland.co.uk

The Company’s LEI is 213800AX3FHPMJL4IJ53.

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


Impact Healthcare REIT plc 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 UK 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 Company’s intention is to pay a target dividend of 6.17 pence per share for the year to 31 December 20194.
The Company will seek to grow the target dividend in line with the inflation-linked rental uplifts received by the Group under the terms of the rent review provisions contained in the Group’s leases in the prior financial year.
The Group’s Ordinary Shares were admitted to trading on the main market of the London Stock Exchange, premium segment, on 8 February 2019. The Company is a constituent of the FTSE EPRA/NAREIT index.
1    Adjusted earnings per share reflects underlying cash earnings per share in the year. The adjustments made to EPS in arriving at EPRA and Adjusted EPS are set out in note 10 of the Group Financial Statements.
2    As at 28 June 2019, 29 June 2018 and 31 December 2018 respectively.
3    Minster and Croftwood (both subsidiaries of Minster Care Group), Careport, Prestige, Renaissance, Welford, Maria Mallaband Countrywide Group and NHS Cumbria.
4    This is a target only and not a profit forecast. There can be no assurance that the target will be met and it should not be taken as an indicator of the Company’s expected or actual results.
A meeting for investors and analysts and live webcast and conference call will be held at 11.00am today
3 Pancras Square
Those wishing to attend the presentation or access the live webcast and conference call are kindly asked to contact Maitland at impacthealth-maitland@maitland.co.uk  or by telephone on +44 (0) 20 7379 5151.
The presentation will also be accessible on-demand
In addition, a recorded webcast of this meeting and the presentation will also be available to download on-demand from the Company’s website: www.impactreit.uk/investors/reporting-centre/presentations/