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information contained in this announcement is restricted and is not
for publication, release or distribution in the United States of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 and then only to
professional investors in such jurisdictions), Canada, Australia,
Japan or the Republic of South Africa.
25 September 2024
Impact Healthcare REIT
plc
("Impact" or the "Company" or, together with its
subsidiaries, the "Group")
TRANSFER OF OPERATIONS OF
FOUR CARE HOMES TO A NEW TENANT OPERATOR OF THE
GROUP
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, announces
that the Group has completed the transfer of four homes located in
Scotland to a new tenant, Fulcrum Care
("Fulcrum"), on long-term leases.
These homes have been operated by Melrose Holdings Limited
("Melrose") following their transfer from the Silverline Group
("Silverline") as part of a recovery plan first announced by the
Group in June 2023. Melrose is an affiliate of Minster Care
Group.
Since acquiring Silverline's tenant
companies, Melrose has stabilised the operations of the homes. The
Board has now concluded that it is in the best interests of all the
Company's stakeholders to facilitate the transfer of the four homes
in Scotland to a long-term third-party operator, Fulcrum. With this
transfer, all seven of the former Silverline homes have now been
transitioned to long-term operators.
Fulcrum is experienced at managing
complex care home turnaround strategies and brings a wealth of
operational experience to these four homes. Fulcrum is committed to
the long-term success of the homes with leases extending to 35
years and will recommence rent payments on 1 November
2024.
To help Fulcrum ensure the homes
achieve their full potential, the Company has granted a lease
incentive of £0.3m and a short-term working capital facility of
£0.45m to fund any short term liquidity requirements. The working
capital facility will attract a coupon of 10% per annum. The
working capital facility is repayable and the lease incentive is
expected to be fully recovered over the life of the leases. We
anticipate investing a further £0.5m of capex across the four
homes, which will be rentalised and accretive to shareholder
value.
Andrew Cowley, Managing Partner of
Impact Health Partners commented, "I am
delighted that we have now secured new long-term tenants for all
the ex-Silverline homes. We would like to thank Melrose for its
interim management and turnaround of these homes. Our primary
commitment has been achieved in ensuring continuity of care for the
residents in these homes, while simultaneously securing long-term
value for our shareholders."
FOR
FURTHER INFORMATION, PLEASE CONTACT:
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Impact Health Partners LLP
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Via H/Advisors Maitland
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Andrew Cowley
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David Yaldron
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Jefferies International Limited
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+44 20 7029 8000
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Tom Yeadon
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tyeadon@jefferies.com
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Ollie Nott
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onott@jefferies.com
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Winterflood Securities Limited
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+44 20 3100 0000
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Neil Langford
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neil.langford@winterflood.com
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Joe Winkley
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joe.winkley@winterflood.com
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H/Advisors Maitland (Communications advisor)
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impacthealth-maitland@h-advisors.global
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James Benjamin
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+44 7747 113 930
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Rachel Cohen
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+44 20 7379 5151
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Billy Moran
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+44 20 7379 5151
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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's dividend policy is to
maintain a progressive dividend that is covered by adjusted
earnings.
The target total dividend
for the year ending 31 December 2024 is 6.95 pence
per share*, a 0.18 pence
increase over the 6.77 pence in dividends paid or declared per
ordinary share for the year ended 31 December 2023.
The Group's Ordinary Shares trade on
the main market of the London Stock Exchange, premium segment. The
Company is a constituent of the FTSE EPRA/NAREIT index.
* 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.