Impact Healthcare REIT

Overview
Price performance
Financials
Research
Thematics

Impact Healthcare REIT (IHR) 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

Real Estate |
Outlook

18.06.24

Impact Healthcare REIT — Visibly growing income and capital

Real Estate |
Update

31.01.24

Impact Healthcare REIT — Strong cash flow underpins further DPS growth

Real Estate |
Update

26.10.23

Impact Healthcare REIT — On track to meet dividend target

Real Estate |
Update

22.08.23

Impact Healthcare REIT — Interest hedging provides dividend visibility

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Sector

Real Estate

Equity Analyst

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)

185.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(2.6)	2.8	(3.4)
Relative	(1.4)	(0.8)	(12.7)
52 week high/low	95.1p/78.9p

Financials

Impact’s Q124 update showed a continuation of the positive trends that contributed to the strong FY23 performance. Rental growth is driving income and capital values, while the operational and financial performance of tenants continues to strengthen. This is reflected in a record level of rent cover. With cash flow remaining strong, the Q1 DPS increased in line with Impact’s full-year target of 6.95p (+2.7%). Including DPS paid, the Q124 NTA total return was 3.2%, building on the 10.5% FY23 return, the highest since listing in 2017. 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.