Impact Healthcare REIT, which owns a portfolio of care homes in the UK, has provided a covid-19 business update.
The group said the number of occupied beds in its portfolio has been stable, with 3,848 beds occupied on 3 January 2020, and 3,886 beds occupied on 20 March 2020.
It added that a number of the group’s tenants are in discussions with the NHS about making beds available in order to relieve pressure on hospitals.
The company has an extremely low gearing, with a loan to value ratio of 6.8% at 31 December 2019. £25m of debt is currently drawn from Metro Bank and a further £50m of revolving credit facilities remain available from Metro and Clydesdale (CYBG), but which are now undrawn. If both were fully drawn, it would take the Group’s LTV to around 20%.
Interest cover covenants are 200% (Metro) and 325% (CYBG). If all facilities were fully drawn, headroom would be over 800% and 550% for Metro and CYBG respectively. The group does not have to refinance any debt before June 2023.
As at 25 March 2020, the group had £22m of available cash and £50m of undrawn RCF facilities. The group has £54.6m of outstanding commitments to acquisitions and asset management, and a further contingent commitment of £7.2m deferred payments based on the financial performance of certain of its tenants at acquired homes, all of which are expected to deliver incremental rental returns.
The group had been due to announce annual results for 2019 today but has delayed them as per guidance from the FCA and Financial Reporting Council to 8 April 2020.
Highlights include a 3.5% uplift in net asset value per share to 106.81p, a 59.4% increase in profit before tax to £26.3m and a 7.4% jump in EPRA earnings per share to 6.95p.
IHR : Impact Healthcare REIT provides covid-19 update
Why has the share price fallen 30%, has one of their tennents got covid 19?
Let us hope that this is not the case. There has been no announcement on that front. All property stocks have been marked down after valuers warned that it was not possible to value properties in the current environment. Fortunately, Impact does not have large borrowings to service and this will help it get through this.