Portfolio management

Our aim is to continue carefully building a portfolio of attractive UK healthcare assets, principally elderly care homes. We look for an appropriate balance of high-quality core assets that generate attractive, secure and long-term income, and value-add assets with potential to create further value for shareholders and our wider stakeholders. We regularly assess the balance of our portfolio to identify asset management and capital recycling opportunities.

We categorise each asset as follows:

These assets are the primary contributors to our long-term, stable income.

  • Good quality buildings with a useful life greater than the duration of the lease
  • Invested to an appropriate standard
  • Stable trading, underpinning
  • a sustainable level of rent cover

Value-add assets are candidates for asset management initiatives.

  • Present opportunities to deploy capital to enhance the asset and its performance
  • May be a smaller home, have a low level of en suite bathrooms, other elements of functional obsolescence or environmental performance improvements.
  • Value uplift through enabling the tenant to offer a new service, such as dementia and/or targeting private residents

Non-core assets may be candidates for sale and are likely to have been acquired as part of larger portfolios.

  • Limited lifespan homes with a high degree of functional obsolescence
  • Higher alternative use value
  • Could be geographically isolated
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