TIDMIHR
RNS Number : 1912M
Impact Healthcare REIT PLC
07 May 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is not for publication, release or distribution in the United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.
7 May 2020
Impact Healthcare REIT plc
("Impact" or the "Company" or, together with its subsidiaries,
the "Group")
DIVIDEND DECLARATION, NET ASSET VALUE AND TRADING UPDATE
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 provide the
following update for the quarter ended 31 March 2020.
DIVIDEND DECLARATION
-- The Board has today declared the Company's first interim
dividend for the year ending 31 December 2020 of 1.5725 pence per
ordinary share. This dividend is for the period from 31 December
2019 to 31 March 2020 and is payable on 12 June 2020 to
shareholders on the register on 22 May 2020. The ex-dividend date
will be 21 May 2020. This dividend will be a property income
distribution dividend ("PID").
-- The Company received 100% of rent for Q1 and 100% of rent due
in April 2020. This first quarterly dividend is in line with the
aggregate total dividend target of 6.29 pence per share (1) for the
year ending 31 December 2020 announced on 31January 2020, a 1.94%
increase over the 6.17 pence per share declared and paid for the 12
months ended 31 December 2019. The Company is keeping this approach
under careful review. If the trading outlook changes because of the
effects of the COVID-19 pandemic the Company will take appropriate
decisions based on the long term interests of the Company and its
stakeholders.
NET ASSET VALUE
-- Unaudited net asset value ("NAV") at 31 March 2020 of GBP
341.2 million, 106.98 pence per share (NAV at 31 December 2019:
GBP340.7 million, 106.81 pence per share).
BALANCE SHEET RESILIENCE
-- The Company has deliberately maintained low gearing with a
loan to value ("LTV") ratio of 6.8% at 31 March 2020. LTV will rise
to a maximum of 18% if all committed transactions complete.
-- As at 1 May 2020, the Group had cash of GBP25 million and
headroom on its undrawn debt facilities of GBP98.9 million, of
which GBP84.4 million is available immediately.
PROPERTY VALUATION AND PORTFOLIO UPDATE
-- The Group's property portfolio ("Portfolio") was
independently valued (unaudited) at GBP 345.1 million as at 31
March 2020 (valuation as at 31 December 2019, GBP318.8 million), an
increase of GBP26.3 million, or 8.3% in the quarter.
o This includes GBP21.7 million in relation to acquisitions in
the quarter of eight care homes with three tenants, including three
homes with a new tenant, Silverline.
o In addition, GBP 1.2 million was invested in a new development
with Prestige Care and a further GBP0.7 million on capital
improvements across a further three homes.
o A deferred payment of GBP0.7 million was made in relation to a
one property leased to Careport.
o A further GBP2.0 million of value uplifts were recognised
across the Portfolio, primarily as a result of rent reviews in the
quarter.
o Annualised contracted rent grew to GBP29.2 million at 31 March
2020 (at 31 December 2019: GBP23.1 million) including GBP3.5
million in relation to the portfolio of nine homes with a new
tenant Holmes Care (on which the Company recently exchanged),
GBP2.2 million from acquisitions and forward funding development
and a further GBP0.4 million from rent reviews at an average uplift
of 2.6%.
o In light of current market uncertainty created by COVID-19,
the valuation has been reported on the basis of 'material valuation
uncertainty' in line with recent RICS guidance.
-- At 31 March 2020, the Portfolio comprised 94 healthcare
properties, of which 92 are care homes let to 10 tenants on
fixed-term leases of 20 to 25 years (no break clauses), 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). In addition,
the Group owns two healthcare facilities leased to the NHS. In
total, the Group has 11 tenants (2) across its Portfolio.
-- Weighted average unexpired lease term across the Portfolio of 19.8 years.
COVID-19 UPDATE
The Group's tenants provide an essential service to the
communities in which they operate and are playing a critical role
in helping to provide care to vulnerable elderly people during the
COVID-19 pandemic. The Group's top priority remains the health,
welfare and safety of the Group's tenants, care home residents,
healthcare professionals and wider stakeholders.
The Investment Manager continues to be in regular communication
with all the Group's tenants and key service providers to monitor
how the pandemic is affecting them and also, where appropriate, to
share information amongst the tenants and ideas on how to best
manage issues caused by the pandemic.
In addition to the detailed monthly operating and financial data
the Investment Manager receives from all tenants at the end of each
quarter, the Group has asked its tenants to provide weekly
occupancy data for the duration of the pandemic, along with a
weekly situation report on how the pandemic is affecting their
operations. Over the eight weeks between the week ending 6 March
2020, in which the first COVID-19 related death was registered in
the UK, and the week ending 1 May 2020 the number of occupied beds
in the Company's portfolio has reduced by 173, from 4,225 to 4,052,
a fall of 4%.
At the onset of the pandemic, tenants' principal concerns were
how to ensure adequate staff were available to provide care and
ensuring staff had sufficient personal protective equipment
("PPE"). Tenants are now reporting that pressure on staffing has
eased as staff, who initially had to self-isolate, return to work,
and that, as pressure on hospitals from COVID-19 reduces, PPE is
more widely available. There are also encouraging signs that
COVID-19 testing for care homes residents and staff is becoming
more widely and promptly available across the country.
Despite the ongoing uncertainty as to the impact and duration of
the COVID-19 pandemic, the Company continues to be well positioned
for the uncertainties which lie ahead and will provide updates with
material developments as the pandemic evolves.
Notes
(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.
(2) Minster, Croftwood, (both subsidiaries of Minster Care
Group), Careport, Prestige, Renaissance, Welford, Maria Mallaband
Countrywide Group, NHS Cumbria, Optima, Holmes Care and Silverline
Care.
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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