Like the numerous real-estate investment trusts to have entered the public markets this year, Impact Healthcare Reit (IHR) is trying to attract shareholders with its income focus. The care home developer and landlord is targeting a total dividend of 6p a share for the 12 months following its inception and IPO in March, equivalent to a yield of 6 per cent on the issue price.
Backing these dividend payments is, of course, rental income received by Impact Healthcare from the care providers to which it leases its properties. Using part of the £160m raised at IPO, it acquired a portfolio of 57 care homes, with an annualised rent roll of £11.6m, and rents subject to annual upward-only, inflation-linked reviews. The weighted average unexpired lease term at the end of June was almost 20 years.
Net rental income came in at £2.2m during the six months to the end of June. The group grows this by increasing capacity and improving facilities at its properties, although rental reviews are capped at an annual 4 per cent. Since June, management has approved 92 additional beds at its homes and plans to add a further 310 beds during the next three years.
| IMPACT HEALTHCARE REIT (IHR) | ||||
| ORD PRICE: | 103p | MARKET VALUE: | £165m | |
| TOUCH: | 102-104p | 12-MONTH HIGH: | 106p | LOW: 101p |
| DIVIDEND YIELD: | 1.5% | TRADING PROP: | nil | |
| PREMIUM TO NAV: | 3% | |||
| INVESTMENT PROP: | £155m | NET CASH: | £7m | |
| Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 (pre-inception) | na | na | na | na |
| 2017 | 100 | 2.98 | 1.95 | 1.5* |
| % change | - | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *First quarterly dividend paid on 31 August | ||||
