Care REIT (LSE: CRT)

Last close As at 04/11/2024

GBP0.86

−0.40 (−0.46%)

Market capitalisation

GBP360m

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.

Latest Insights

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Real Estate | Flash note

Impact Healthcare REIT — Successful turnaround

Real Estate | Update

Impact Healthcare REIT — Visible growth

Real Estate | Flash note

Impact Healthcare REIT — Non-core sales enhance the portfolio

Real Estate | Outlook

Impact Healthcare REIT — Visibly growing income and capital

Impact Healthcare REIT_resized

Sector

Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Andrew Cowley

    Managing partner, Impact Health Partners

  • David Yaldron

    FD

  • Rupert Barclay

    Non-executive chairman

Balance Sheet

Forecast net cash (£m)

175.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 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

Financials

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

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