Impact Healthcare Reit (IHR) spent the first half of the year building up funding firepower to expand its portfolio of care homes for the elderly. This included signing a £25m revolving credit facility with Clydesdale bank, which lifted available debt to £75m, as well as a £100m share placing in May, 85 per cent of which has been committed to date.
In the period, the care home landlord spent £39m acquiring nine properties, which boosted the number of beds by 14 per cent. That not only diversified the portfolio geographically but also added two more tenants in Countrywide (CWD) and the NHS. A further 91 beds were added in July and August via the purchase of a home in Devon and another in Oxfordshire.
Annual rent increases - which have a floor of 2 per cent and ceiling of 4 per cent - also lifted the valuation of the portfolio by around £5m, while the contracted rent roll rose by almost half. As a reminder, Impact's average weighted unexpired lease term sits at just under 20 years and carries no break clauses, which is more secure than most landlords. Income also remains decent, covering rent almost twice over.
IMPACT HEALTHCARE REIT (IHR) | ||||
ORD PRICE: | 112p | MARKET VALUE: | £321m | |
TOUCH: | 111-112p | 12-MONTH HIGH: | 115p | LOW: 100p |
DIVIDEND YIELD: | 5.4% | TRADING PROP: | nil | |
PREMIUM TO NAV: | 7% | |||
INVESTMENT PROP: | £266m | NET CASH: | £29m |
Half-year to 30 Jun | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)* |
2018 | 102 | 8.5 | 4.41 | 3.00 |
2019 | 105 | 10.9 | 5.05 | 3.09 |
% change | +3 | +29 | +15 | +3 |
Ex-div: | - | |||
Payment: | - | |||
*Dividends paid quarterly, second-quarter dividend of 1.5425p was paid on 30 Aug |