Impact Healthcare’s portfolio value grows £6.6m

Diversification proves positive for Impact Healthcare
Rupert Barclay, non-executive chairman, Impact Healthcare REIT

The value of Impact Healthcare REIT’s portfolio has grown by £6.6m – or 2.94% – its quarterly trading update has revealed.

At 31 March, the portfolio was valued at £230.4m up from £223.8m at 31 December 2018. The increase included £2.8m of acquisitions, £1.1m invested in capital improvements in homes and a net value uplift of £2.7m.

At the end of the three-month period, the portfolio comprised 73 residential care homes (3,529 operational beds) let to six tenants on fixed-term leases of 20 to 25 years, subject to annual upward-only Retail Price Index-linked rent reviews, with a floor and cap at 2% per annum. and 4% per annum respectively.

The group completed on the acquisition of Yew Tree in the quarter adding 76 beds to the its portfolio.

Its annual contracted rent roll of £18.1m at 31 March was up from £17.8m last quarter.

The trading update said its unaudited net asset value (NAV) at the end of the period was £200.2m, 104.18 pence per share (NAV at 31 December 2018: £197.8m, 103.18 pence per share).

As reported last month, Impact intends to raise at least £25m by way of a placing of new ordinary shares to fund a pipeline of potential acquisitions.

Rupert Barclay, chairman, said: ‘The group is continuing to exercise a disciplined, value-led and patient approach to capital deployment, which is driving attractive, growing and secure long-term income and capital returns for our shareholders, while helping to deliver stability and high-quality care to residents and a commitment to enhance their homes wherever possible.

‘The group continues to add additional attractive assets to our portfolio which we expect will deliver growth in income alongside capital appreciation from asset management opportunities.

‘The company’s proposed fundraising will enable the company to capitalise on its identified pipeline of attractive near-term investment opportunities, which are expected to be earnings accretive and further diversify the company’s portfolio.’