TIDMIHR
RNS Number : 6568W
Impact Healthcare REIT PLC
22 August 2022
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area
(other than the Republic of Ireland or the Netherlands), Canada,
Australia, Japan or the Republic of South Africa.
22 August 2022
Impact Healthcare REIT plc
("Impact" or the "Company" or, together with its subsidiaries,
the "Group")
ACQUIRES TWO CARE HOMES FOR GBP14 MILLION AND WELCOMES A NEW
TENANT
The board of directors of Impact Healthcare REIT plc (ticker:
IHR), the real estate investment trust which gives investors
exposure to a diversified portfolio of UK healthcare real estate
assets, in particular care homes, is pleased to announce that the
Group has recently exchanged contracts to acquire two care homes in
Kent for GBP14.0 million plus acquisition costs. These acquisitions
are with a new tenant, Belmont Healthcare ("Belmont"), the Group's
14(th) tenant.
One home is a purpose-built, 120-bedroom property split over
four units, each with 30 beds. It has strong operational cashflows
and is located on a generous site, which has significant potential
for future value-enhancing asset management and development
opportunities. Following completion, we intend to invest further in
the property to reconfigure the existing layout of each unit,
reducing the number of bedrooms in each from 30 to 20. This will
enable Belmont to deliver elements of an innovative 'household'
model of care for residents with dementia, developed in the
Netherlands, which has proven beneficial to residents. These works
will be undertaken on a phased basis to enable occupancy to be
maintained. There is further potential for complementary,
healthcare-related development on the site, which we intend to
pursue once the existing units have been reconfigured.
The second transaction is the sale and leaseback of a home
currently owned and operated by Belmont. It has 48 bedrooms with en
suite bathrooms. The home has been recently refurbished and
extended. The acquisition of this home includes a potential
deferred payment of up to GBP550k, subject to its continued strong
trading performance. The deferred payment, if it becomes payable,
will result in increased rental payments, ensuring that the
effective purchase yield of this asset remains materially
unchanged.
Both properties are well located and have an excellent
reputation for quality care with 'Good' CQC inspection ratings.
Once completed, these transactions are expected to deliver the
following benefits to the Group:
-- enable the Group to deploy an initial GBP14.0 million of
capital, plus transaction costs, followed by additional asset
management and development opportunities;
-- the initial annual rent has been agreed at GBP890,000,
reflecting an accretive gross initial yield of 6.36%;
-- will add two care homes comprising 168 beds to the Group's
portfolio, which will then total 136 care homes and 7,484 beds(1)
(at 31 December 2021: 124 homes and 6,720 beds);
-- EPC ratings of B on both homes; and
-- introduce a new tenant, the Group's 14(th) . Further
acquisitions with Belmont are under consideration.
These acquisitions will be leased on Impact's standard green
leases, with fixed terms of 25 years and annual upward-only rent
reviews linked to the Retail Price Index ("RPI"), with a floor of
2% p.a. and a cap of 4% p.a., with commitments to a minimum annual
expenditure by the tenant on the maintenance of the care homes.
Completion is subject to re-registration with the Care Quality
Commission.
The Company's investment manager, Impact Health Partners LLP, is
in developed legal discussions on several other acquisition
opportunities and expects to make further announcements in the near
future.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Impact Health Partners Via Maitland/AMO
LLP
Mahesh Patel
-------------------------------------- -----------------
Andrew Cowley
-------------------------------------- -----------------
D avid Yaldron
-------------------------------------- -----------------
Jefferies International +44 20 7029
Limited 8000
-----------------
Tom Yeadon tyeadon@jefferies.com
-------------------------------------- -----------------
Neil Winward nwinward@jefferies.com
-------------------------------------- -----------------
Winterflood Securities +44 20 3100
Limited 0000
-----------------
Neil Langford neil.langford@winterflood.com
-------------------------------------- -----------------
Joe Winkley joe.winkley@winterflood.com
-------------------------------------- -----------------
Maitland/AMO (Communications +44 7747 113
adviser) 930
-----------------
James Benjamin impacthealth-maitland@maitland.co.uk
-------------------------------------- -----------------
Alistair de Kare-silver
-----------------
The Company's LEI is 213800AX3FHPMJL4IJ53.
Further information on Impact Healthcare REIT is available at
www.impactreit.uk .
NOTES:
Impact Healthcare REIT plc acquires, renovates, extends and
redevelops high quality healthcare real estate assets in the UK and
lets these assets on long-term full repairing and insuring leases
to high-quality established healthcare operators which offer good
quality care, under leases which provide the Company with
attractive levels of rent cover .
The Company aims to provide shareholders with an attractive
sustainable return, principally in the form of quarterly income
distributions and with the potential for capital and income growth,
through exposure to a diversified and resilient portfolio of UK
healthcare real estate assets, in particular care homes for the
elderly.
The Company has a progressive dividend policy with a target to
grow its annual aggregate dividend in line with the
inflation-linked rental uplifts received by the Group under the
terms of the rent review provisions contained in the Group's leases
in the prior financial year.
On this basis, t he Company is targeting a dividend for the year
to 31 December 2022 to increase by 2.0% to 6.54 pence per share (2)
.
The Group's Ordinary Shares were admitted to trading on the main
market of the London Stock Exchange, premium segment, on 8 February
2019. The Company is a constituent of the FTSE EPRA/NAREIT
index.
Neither the content of the Company's website, nor the content on
any website accessible from hyperlinks on its website for any other
website, is incorporated into, or forms part of, this announcement
nor, unless previously published by means of a recognised
information service, should any such content be relied upon in
reaching a decision as to whether or not to acquire, continue to
hold, or dispose of, securities in the Company.
(1) Including forward funded assets and portfolios invested in
via a loan
(2) This is a target only and not a profit forecast. There can
be no assurance that the target will be met and it should not be
taken as an indicator of the Company's expected or actual
results.
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END
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