Impact Healthcare REIT on track – Impact Healthcare REIT, which has just published some figures covering the period from launch to end June 2017. They raised £160m from investors in March 2017 and started trading on 7 March 2017. The chairman says that, at the period end, they had invested the majority of the net equity proceeds, having acquired the seed portfolio and two of the option assets (in total, 56 assets with 2,479 beds) for a net purchase price GBP148.75 million on 4 May and a further asset called Saffron Court (48 beds) for a net purchase price GBP3.4 million on 29 June. The net initial yields on the acquisitions were 7.6% and 7.7% respectively. The portfolio has an annualised rent roll of GBP11.6 million and was independently valued at GBP153.4 million as at 30 June, compared with the net purchase price of GBP152.2 million. The chairman says that the fund is on track to deliver their fully covered dividend target.
The fund is targeting a fully covered aggregate dividend of 6.0p per share for the first 12 months from its admission to trading. This equates to a yield of 6% on the issue price. The dividend is payable in quarterly instalments. A fully covered dividend of 1.50p per share for the period from 7 March 2017 to 30 June 2017 was paid on 31 August 2017.
Since the period end, the board has approved the first phase of the fund’s asset management programme, which will add 92 beds. They are also advancing plans to add a further 310 beds over the next three years. The chairman says that asset management is a key element of the fund’s value creation strategy, allowing them to increase rental income and capital values.
IHR : Impact Healthcare REIT on track