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Impact Healthcare REIT plc
(“Impact” or the “Company” or, together with its subsidiaries, the “Group”)
Half year results for the six months ended 30 June 2021
Another period of strong performance and a portfolio that continues to provide resilient income and growth
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, today announces its half year results for the six months ended 30 June 2021.
Rupert Barclay, Chairman of Impact Healthcare REIT PLC, commented:
“The past 18 months have demonstrated how resilient our business is. There will be further – and different – challenges ahead, but we believe the Group will be well positioned to deal with them.
The key tests of how resilient the Group is in practice were whether our tenants were able to continue to provide good quality care during an exceptionally challenging period; and whether we continued to collect 100% of the rent due, without putting undue stress on our tenants. We are pleased with how well the Group, and its tenants, rose to these two tests, but we will seek to avoid complacency and ensure that where lessons have been learned they are embedded into the Group’s future strategy.
The Company’s business model remains robust and resilient as demonstrated by the Group’s continued 100% rent receipt. We appreciate the support of new and existing shareholders in our May equity placing, the proceeds of which, along with additional financing secured in the period, allow the Group to pursue further accretive acquisitions whilst remaining well capitalised, with a strong balance sheet, and significant liquidity and headroom.
We welcome the major reform of adult social care announced by the Prime Minister on 7 September 2021 and will study with care its implications for our business in the days ahead. When implemented, these reforms will not just increase funding for elderly care, but will also make it easier for all participants in the sector to plan for the longer term. We will remain a long-term business and the Company’s sustainable healthcare portfolio will continue to provide crucial care-based infrastructure supporting vulnerable elderly people across the UK.”
|Dividends declared per share||3.21p||3.15p||+1.9%||6.29p
|Profit before tax||£14.51m||£11.05m||+31.3%||£28.80m
|Earnings per share (“EPS”)||4.41p||3.46p||+27.5%||9.02p
|Adjusted earnings per share (1)||3.26p||2.86p (3)||+14.0%||5.93p
|Adjusted earnings dividend cover||102%||91%||94%
|Contracted rent roll||£33.8m||£29.5m||+14.5%||£30.9m
|Net asset value (“NAV”) per share||110.66p||107.17p||+3.3%||109.58p
|Share price (2)||111.20p ||95.80p||+16.1%||109.00p
|Loan to value (“LTV”) ratio||13.7%||18.1%||-24.2%||17.8%
|NAV total return||3.88%||3.25%||8.46%
- The Group demonstrated the resilience of its business model, collecting 100% of rent due for the period, with no changes to any lease terms or payment schedules, and the portfolio has zero voids.
- Acquired one property and exchanged contracts on another, in total adding 137 beds for a total net consideration of £15.4 million.
- Committed to forward fund a further property with 80 beds. On completion, this will bring our total properties to 111 with 6,141 beds.
- Added one new tenant, giving the Group 13 tenants 4 at the period end. All leases continue to be inflation-linked with upwards only rent reviews.
- Weighted average unexpired lease term (“WAULT”) of 19.5 years at 30 June 2021 (30 June 2020: 19.5 years).
- 81 properties had rent reviews during the period adding £405k to the contracted rent, representing a 2.0% increase on the associated portfolio.
- Grew the contracted rent roll by 14.5% to £33.8 million (30 June 2020: £29.5 million).
- New £26 million NatWest facility with an accordion agreement to extend up to £50 million; Metro facility was reduced from £50 million to £40 million.
- £35 million of gross proceeds from placing of new ordinary shares, admitted onto the main market of the London Stock Exchange on 6 May 2021.
Enhancing the social environment of our homes and their energy efficiency is fundamental to long-term value creation.
Our homes provide an important service in their communities, looking after and supporting a vulnerable segment of society.
We work closely with our tenants to ensure they can provide an enjoyable, safe and caring environment that can enhance the wellbeing of their residents. In the period we have:
- published our EPRA sustainability report for 2020;
- progressed the identified opportunities to improve energy efficiency and EPC ratings; and
- engaged with tenants and their colleagues to understand better how they have cared for their residents and supported each other through the pandemic.
1. Adjusted earnings per share reflects underlying cash earnings per share in the period. The adjustments made to EPS in arriving at EPRA and Adjusted EPS are set out in note 7 of the Interim Financial Statements.
2. As at 30 June 2021, 30 June 2020 and 31 December 2020 respectively.
3. The removal of amortisation of loan arrangement fees was a change made in the year ended 31 December 2020 and the adjusted earnings figure for the period to 30 June 2020 has been restated to reflect this.
4. Minster and Croftwood (both subsidiaries of Minster Care Group), Careport, Prestige, Renaissance, Welford, Maria Mallaband Countrywide Group, NHS Cumbria, Optima, Holmes Care, Silverline, Electus Healthcare and Carlton Hall.
For further information please contact:
Impact Health Partners LLP via Maitland/AMO
Jefferies International Limited Tel: +44 20 7029 8000
Tom Yeadon firstname.lastname@example.org
Neil Winward email@example.com
Francesco Namari firstname.lastname@example.org
Winterflood Securities Limited Tel: +44 20 3100 0000
Neil Langford email@example.com
Joe Winkley firstname.lastname@example.org
Maitland/AMO (Communications Adviser) Tel: +44 7747 113 930
James Benjamin email@example.com
Impact Healthcare REIT plc acquires, renovates, extends and redevelops high quality healthcare real estate assets in the UK and lets these assets on long-term full repairing and insuring leases to high-quality established healthcare operators which offer good quality care, under leases which provide the Company with attractive levels of rent cover.
The Company aims to provide shareholders with an attractive sustainable return, principally in the form of quarterly income distributions and with the potential for capital and income growth, through exposure to a diversified and resilient portfolio of UK healthcare real estate assets, in particular care homes for the elderly.
The Company has a progressive dividend policy with a target to grow its annual aggregate 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.
On this basis, the target total dividend for the year ending 31 December 2021 is 6.41 pence per share*, a 1.91% increase over the 6.29 pence in dividends paid per ordinary share for the year ended 31 December 2020.
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.
* 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.