Care REIT (CRT) invests in a diversified portfolio of UK healthcare assets, particularly residential and nursing care homes, let on long leases to high-quality operators. It aims to provide shareholders with attractive and sustainable returns, primarily in the form of dividends.
Care home demand is driven by demographics and care needs, and benefits from supportive demand fundamentals, including increasing requirements from a rapidly ageing population for high-quality care and a need to reduce pressure on high-cost medical care providers in the NHS.
Real Estate |
Flash note
Real Estate |
Update
Real Estate |
Flash note
Real Estate |
Outlook
Andrew Cowley
Managing partner, Impact Health Partners
David Yaldron
FD
Rupert Barclay
Non-executive chairman
Forecast net cash (£m)
175.9
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (6.0) | (0.9) | 4.8 |
Relative | (4.3) | 2.6 | (6.5) |
52 week high/low | 92.6p/78.9p |
Positive operational and financial trends continued through H124. Rental growth is driving income and capital values, while the performance of tenants has continued to strengthen, reflected in a record level of rent cover. With cash flow remaining strong, the H1 DPS increased in line with Impact’s full-year target of 6.95p (+2.7%). Including DPS paid, the H124 NTA total return was 5.5%, building on the 10.5% FY23 return, the highest since listing. Across the portfolio, tenant operators have benefited from the continuing post-pandemic recovery in occupancy. With the performance of the turnaround assets improving, the operation of three (of seven) assets has been transferred to a new long-term tenant, paving the way for a resumption of rent payments in Q125. The sale of five non-core homes enhances the quality and long-term sustainability of Impact’s overall portfolio, reduces tenant concentration and provides the opportunity to recycle capital.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 45.4 | 38.6 | 32.6 | 8.4 | 10.3 | 11.5 |
2023A | 53.1 | 46.0 | 34.5 | 8.3 | 10.5 | 10.8 |
2024E | 54.6 | 47.2 | 35.7 | 8.6 | 10.1 | 8.4 |
2025E | 58.0 | 50.3 | 39.2 | 9.4 | 9.2 | 8.4 |