TIDMIHR
RNS Number : 8171I
Impact Healthcare REIT PLC
06 April 2020
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is not for publication, release or distribution in the United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.
6 April 2020
Impact Healthcare REIT plc
("Impact" or the "Company" or, together with its subsidiaries,
the "Group")
TRADING UPDATE
&
NEW REVOLVING CREDIT FACILITY
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 a trading
update and that the Group has signed a new revolving credit
facility of GBP50 million (the "Facility") with HSBC UK Bank plc
("HSBC").
Trading update
The Group confirms that, as at 3 April 2020, it had received
100% of the rent due in respect of the forthcoming period from its
tenants who operate care homes, which represents 98.3% of the
Group's total rent roll. The rent due from NHS Cumbria, which
represents the remaining 1.7% of the Group's total rent roll, is
expected to be paid later in the month as usual.
Of the total rent due this month, 90.5% is rent paid quarterly
in advance and 9.5% is rent paid monthly in advance. The Group's
total annualised rent roll as at 1 April 2020 is GBP24.9
million.
New bank facility
The GBP50m Facility is for an initial term of three years with
an option to extend, subject to lender approval, for up to a
further two years. The Facility has a margin of 195 basis points
per annum over three-month LIBOR. GBP34.5 million can be
immediately drawn down under the Facility, and GBP15.5 million is
conditional on security registration of Scottish assets and the
completion of transactions which have exchanged.
The Facility takes the Group's total committed facilities to
GBP125 million, of which GBP26 million is currently drawn.
This Facility will help to ensure that the Group continues to be
well capitalised and increases balance sheet resilience:
-- As at 6 April 2020 the Group has cash of GBP27 million and
headroom on its undrawn debt facilities of GBP98.9 million, of
which GBP84.4 million is available immediately.
-- The Group has GBP54.6 million of outstanding commitments to
acquisitions and asset management initiatives, and a further GBP7.2
million contingent commitment to deferred payments based on future
financial performance, all of which are expected to deliver
incremental rental returns.
-- The Group has no debt refinancing requirements before 2023.
-- Debt drawn at 6 April 2020 is GBP26 million, giving an LTV of
7.0%, based on net asset values at 31 December 2019.
-- Once facilities have been drawn to finance the outstanding
commitments outlined above, drawn debt will be circa GBP75 million
and the Group's LTV will be circa 18%, well below the Group's
maximum permitted LTV of 35%.
-- Once GBP75 million has been drawn, the Company's asset values
would need to fall by more than 50% from its most recent valuations
before there would be any potential breaches of its banking LTV
covenants.
The Facility will help the Group to continue to manage its
capital structure in line with its investment policy in a flexible
manner and will support the Group with its future growth plans.
However, the Group has no plans to drawdown more debt than is
required to finance the existing outstanding commitments outlined
above until the impact of the COVID-19 pandemic is clearer.
The Company is continuing to monitor carefully the development
of COVID-19 and will keep shareholders updated with material
developments as they affect the Company as the situation
evolves.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners LLP via Maitland/AMO
Mahesh Patel
Andrew Cowley
Winterflood Securities Limited Tel: 020 3100 0000
Joe Winkley
Neil Langford
RBC Capital Markets Tel: 020 7653 4000
Rupert Walford
Matthew Coakes
Maitland/AMO (Communications Adviser) Tel: 020 7379 5151
James Benjamin Email: impacthealth-maitland@maitland.co.uk
The Company's LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at
www.impactreit.uk .
NOTES:
Impact Healthcare REIT plc 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 UK healthcare real estate
opportunities, in particular care homes for the elderly. The
Group's investment policy is to acquire, 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 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.
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.
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END
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