Impact Healthcare REIT, the care homes investor, has reported a 1.8% rise in net asset value (NAV) for the third quarter and confirmed 100% of rents for the year to date have been collected.
In a trading update for the quarter ended 30 September 2020, the company said the unaudited NAV per share was 109.06p, compared to 107.17p at 30 June 2020.
The normal rent collection figures meant the group was able to declare its third interim dividend for the year ending 31 December 2020 of 1.5725p, in-line with the annual total dividend target of 6.29p for the year.
Portfolio update
The group’s property portfolio was valued at £399.4m as at 30 September 2020 (at 30 June 2020: £346.0 million), an increase of 15.4% in the quarter, due to acquisitions and valuation uplifts.
In the quarter, the group acquired nine homes with 649 homes across Scotland let to a new tenant in its portfolio, Holmes Care. It also exchanged contracts on an additional care home, St Peters House close to Bury St Edmunds, with 62 single en-suite bedrooms.
As at 30 September 2020, the portfolio comprised 102 healthcare properties and one forward funded development under construction. All but one property is let on fixed-term leases of 20 to 25 years (no break clauses), subject to annual upward-only Retail Price Index-linked rent reviews (with a floor and cap of varying ranges between 1% and 5% respectively). In addition, the group owns two healthcare facilities leased to the NHS. In total, the group has 11 tenants across the portfolio, with an annualised contracted rent roll of £29.9m. The weighted average unexpired lease term (WAULT) across the portfolio is 20.0 years.
Balance sheet
The company has low gearing with a loan to value (LTV) ratio of 17.8% as at 30 September 2020. The LTV ratio will rise to 21.3% if all committed transactions complete. As at 1 October 2020, the group had cash of £24.8m and headroom on its undrawn debt facilities of £49.0m, of which £33.5m is available immediately.
COVID-19 update
As at 20 October 2020, 10 residents living in six of the group’s homes had tested positive, and 10 staff working at four homes were positive, all of which were now self-isolating.
To combat the spread of the virus, a typical regime of staff being tested once a week and residents once a month is in place across the portfolio. The company has installed thermal imaging cameras in the entrances of its homes to provide an added layer of infection control to support residents and healthcare professionals, it added.
Occupancy was stable across the portfolio during the third quarter, but new admissions are not expected to rise substantially until current restrictions on visitors to homes are eased, the group said.
IHR: Impact Healthcare REIT posts jump in NAV and updates on COVID
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