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Impact Healthcare REIT posts slight uplift in NAV

Impact Healthcare REIT has posted a slight uplift in net asset value (NAV) for the first quarter of 2020.

The group, which owns a portfolio of UK healthcare real estate assets, reported a NAV of 106.98p per share, up from 106.81p at the end of December 2019.

It also declared a dividend for the first quarter of 1.5725 pence per ordinary share. This is payable on 12 June 2020 to shareholders on the register on 22 May.

The first quarterly dividend is in line with the aggregate total dividend target of 6.29 pence per share for 2020, a 1.94% increase over the 6.17 pence per share declared and paid for 2019.

Impact Healthcare was one of only a handful of property companies that has received 100% of rent during the covid-19 pandemic. However, it said it was keeping the dividend under review in case the trading outlook changes because of the effects of the pandemic.

The group’s property portfolio, which mainly consists of care homes, grew in value by 8.3% to £345.1m as at 31 March 2020. The increase was driven by £21.7m in acquisitions, with further uplifts coming from capital improvements and positive rent reviews across the portfolio.

Annualised contracted rent grew to £29.2m in the quarter, from £23.1m. At 31 March 2020, its portfolio comprised 94 healthcare properties, made up of 92 care homes and two healthcare facilities leased to the NHS. In total, the group has 11 tenants with a weighted average unexpired lease term (WAULT) of 19.8 years.

The company has low gearing with a loan to value (LTV) ratio of 6.8% at 31 March 2020. LTV will rise to a maximum of 18% if all committed transactions complete. As at 1 May 2020, the group had cash of £25m and headroom on its undrawn debt facilities of £98.9m, of which £84.4m is available immediately.

Covid-19 update

Over the eight weeks between the week ending 6 March 2020, in which the first covid-19 related death was registered in the UK, and the week ending 1 May 2020, the number of occupied beds in the company’s portfolio has reduced by 173, from 4,225 to 4,052, a fall of 4%. It is not known how many of these were related to covid-19.

Impact said its tenants were now reporting that pressure on staffing has eased as staff, who initially had to self-isolate, return to work, and that, as pressure on hospitals from covid-19 reduces, PPE is more widely available. It also said there were also encouraging signs that testing for care home residents and staff is becoming more widely and promptly available across the country.

IHR : Impact Healthcare REIT posts slight uplift in NAV

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