Disposal of Care Home & Related Party Transaction

RNS Number : 2001C

Impact Healthcare REIT PLC

10 October 2022

 

The information contained in this announcement is restricted and is not for publication, release or distribution in the United States of America, any member state of the European Economic Area (other than the Republic of Ireland or the Netherlands), Canada, Australia, Japan or the Republic of South Africa.

10 October 2022

Impact Healthcare REIT plc

("Impact" or the "Company" or, together with its subsidiaries, the "Group")

A PROFITABLE DISPOSAL ABOVE LATEST BOOK VALUE OF A NON-CORE CARE HOME AND SMALLER RELATED PARTY TRANSACTION

The Board of Directors of Impact Healthcare REIT plc (ticker: IHR), the real estate investment trust which gives investors exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes, is pleased to announce that the Group has sold a non-core care home for £2.65 million, 4 per cent. above the latest book value as at 30 June 2022.

Impact has completed on the sale of Attlee, a 68 bed care home in Wakefield, acquired as part of the seed portfolio in March 2017. The home was not a long-term strategic asset for Impact or the tenant, Minster Care Management Limited ("Minster") and as part of the Group's active portfolio management strategy, was jointly marketed.

As part of the sale Impact has entered into a lease surrender with Minster for nil consideration. Minster is deemed to be a related party of the Company under the Listing Rules. The lease surrender with Minster is therefore deemed to be a smaller related party transaction for the purposes of Listing Rule 11.1.10R and this announcement is therefore made in accordance with Listing Rule 11.1.10R(2)(c).

FOR FURTHER INFORMATION, PLEASE CONTACT:

Impact Health Partners LLP		Via H/Advisors Maitland
Mahesh Patel
Andrew Cowley
D avid Yaldron
Jefferies International Limited		[phone]
Tom Yeadon	[e-mail]
Neil Winward	[e-mail]
Winterflood Securities Limited		[phone]
Neil Langford	[e-mail]
Joe Winkley	[e-mail]
H/Advisors Maitland (Communications adviser)		[phone]
James Benjamin	[e-mail]
Alistair de Kare-silver

The Company's LEI is 213800AX3FHPMJL4IJ53.

Further information on Impact Healthcare REIT is available at www.impactreit.uk .

NOTES:

Impact Healthcare REIT plc acquires, renovates, extends and redevelops high quality healthcare real estate assets in the UK and lets these assets on long-term full repairing and insuring leases to high-quality established healthcare operators which offer good quality care, under leases which provide the Company with attractive levels of rent cover .

The Company aims to provide shareholders with an attractive sustainable return, principally in the form of quarterly income distributions and with the potential for capital and income growth, through exposure to a diversified and resilient portfolio of UK healthcare real estate assets, in particular care homes for the elderly.

The Company has a progressive dividend policy with a target to grow its annual aggregate dividend in line with the inflation-linked rental uplifts received by the Group under the terms of the rent review provisions contained in the Group's leases in the prior financial year.

On this basis, t he Company is targeting a dividend for the year to 31 December 2022 to increase by 2.0% to 6.54 pence per share ¹ .

The Group's Ordinary Shares were admitted to trading on the main market of the London Stock Exchange, premium segment, on 8 February 2019. The Company is a constituent of the FTSE EPRA/NAREIT index.

Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website for any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.

¹   This is a target only and not a profit forecast. There can be no assurance that the target will be met and it should not be taken as an indicator of the Company's expected or actual results.

 

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