Trading Update

RNS Number : 5060M

Impact Healthcare REIT PLC

31 July 2017

 

31 July 2017

Impact Healthcare REIT plc

(the "Company")

TRADING UPDATE

The Board of Directors of Impact Healthcare REIT Plc (ticker: IHR) is pleased to provide the following update for the period ended 30 June 2017.

Highlights

·     Fully subscribed initial public offering raised £160 million and admission to trading on the specialist fund segment of the main market of the London Stock Exchange on 7 March 2017

·     Invested £152.1 million net of acquisition costs, with a 30 June 2017 Independent valuation of £153.4 million of the Company's property portfolio

·     Unaudited EPRA Net Asset Value at 30 June 2017 of £157.8 million, 98.53 pence per share

·     Unaudited EPRA Earnings for the period to 30 June 2017 of £2.87 million, 1.79 pence per share

·     The Board today declares a fully covered dividend of 1.50 pence per ordinary share for the period from 7 March 2017 to 30 June 2017. This dividend will be a Property Income Distribution ("PID")

o  The dividend will be paid on 31 August 2017 to shareholders on the register on 9 August 2017. The ex-dividend date will be 10 August 2017

·     Targeting a fully covered aggregate dividend of 6.0 pence per share for the first 12 months from Admission which equates to a yield of 6 per cent. per annum on the Issue Price, on an ungeared basis and payable in quarterly instalments¹

·     The Company's property portfolio comprises 57 residential care homes (2,527 beds), with leases of 20 years (with no tenant break right), subject to annual upward only, Retail Price Index-linked rent reviews (with a floor and cap at 2% p.a. and 4% p.a., respectively)

o  4 May 2017, acquired the Seed Portfolio (2,479 beds) for £148.75 million, reflecting a net initial yield of 7.6%

o  29 June 2017, acquired Saffron Court, Leicester (48 beds) for £3.4 million, reflecting a net initial yield of 7.7%

o  The portfolio has an annualised rent roll of £11.6 million

·     The Company has approved in principle, subject to financing, the first phase of capital enhancements to the Company's property portfolio that will add 92 new beds to three homes.  Further opportunities for an additional 310 beds have been identified and are being advanced

·     Strong pipeline of attractive new potential investment opportunities being pursued

·     The Company has no debt in place at present but is engaged with finance providers to arrange a facility to finance acquisitions and capital enhancements

·     30 June 2017, appointment of Paul Craig as non-executive director and a member of the Management Engagement Committee with immediate effect

·     The Company expects to report its results for the period ended 30 June 2017 in late September 2017

Rupert Barclay, non-executive Chairman of Impact Healthcare REIT plc, commented: 

"The Company has been active in achieving the goals set out at the time of its IPO. We have acquired a portfolio of 57 residential care homes, diversified by geography, customer base and home size, with leases of 20 years, subject to annual RPI-linked rent reviews. The Board and Manager remain confident of delivering to our shareholders a stable and growing income stream with the potential for capital appreciation through active asset management."

Andrew Cowley, Managing Partner of Impact Health Partners LLP, said:

"The successful completion of the acquisitions of the Seed Portfolio and Saffron Court provide the Company with stable and secure cashflows that support the Company's dividend policy.

Through our track record, experience and established network of contacts, the Company is well-placed to deliver identified capital growth opportunities from active asset management and has a strong pipeline of attractive new investments, which are in line with our investment criteria and returns profile."

FOR FURTHER INFORMATION, PLEASE CONTACT:

Impact Health Partners LLP Mahesh Patel Andrew Cowley	via Newgate Communications
Winterflood Securities Limited Joe Winkley Neil Langford	Tel: [phone]
Newgate Communications (PR Adviser) James Benjamin Anna Geffert Lydia Thompson	Tel: [phone] Email: [e-mail]

Notes:

1.    This is a target only and not a profit forecast and there can be no assurance that it will be met.

NOTES:

The Company is a real estate investment trust ("REIT") which aims to provide shareholders with an attractive return, principally in the form of quarterly income distributions and with the potential for capital and income growth, through exposure to a diversified portfolio of healthcare real estate opportunities. The Company's investment policy is to acquire, own, lease, renovate, extend and redevelop high quality healthcare real estate assets in the UK and lease those assets primarily to healthcare operators providing residential healthcare services under full repairing and insuring leases.

The Company and its Investment Adviser believe that residential healthcare is a significant investment opportunity in the UK, owing to both increasing demand for various forms of care from a growing and ageing population and the current reduction in the supply of suitable assets for providing that care. A well-capitalised landlord like the Company, with an experienced investment adviser, should be well positioned to deliver attractive returns to investors, while also providing stability and a commitment to enhance homes wherever possible to their residents.

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

 

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