Impact’s portfolio valuation grows 47%

Diversification proves positive for Impact Healthcare
Rupert Barclay, chairman, Impact Healthcare REIT

The valuation of Impact Healthcare REIT’s portfolio grew 47.4% to £271.6m as at 30 June 2019 (30 June 2018: £184.3m), with the investor adding nine properties and 471 beds in the first half of this year.

During the January-June period it added two new tenants – Maria Mallaband and Countrywide Group and the NHS – taking its total number to eight. Impact grew the number of properties in its portfolio to 81 with 3,924 beds.

Its contracted rent roll rose 49.3% to £21.6m on 30 June this year, from £14.5m on 30 June 2018, while the investor posted a 29% increase in profit before tax to £10.9m (30 June 2018: £8.5m).

EPRA (European Public Real Estate Association) earning per share rose to 3.62p, from 3.23p.

The company raised £100m of new equity from its oversubscribed placing in May – 85% of which has now been committed.

Since the reporting period, Impact has completed the acquisition of two homes in Devon and Oxfordshire, adding a further 91 beds to its portfolio.

It has exchanged contracts on a portfolio of two homes in Suffolk with a further 98 beds and adding a tenant.

Solicitors have also been instructed in relation to other transactions, its financial update said.

Rupert Barclay, Impact Healthcare REIT chairman, said: ‘These strong first half results give the company good momentum going into the second half and make us well placed to continue to deliver value in the short and longer term.

‘We appreciate the support existing and new shareholders gave us in the equity placing we closed in May, the proceeds of which have given us the capacity to bring further high-quality assets into the portfolio, increasing our diversification and reducing risk.

‘We have strong relationships with a growing number of high-quality tenants, who offer an essential regulated service and provide good care. This in turn ensures the group has a secure income stream.

‘This stands us in good stead in an uncertain economic and political environment, including where the outcome of Brexit negotiations is still uncertain, and underpins our new progressive dividend policy and total return target, which reflect our confidence in the group’s prospects.’