Impact Healthcare’s Net Asset Value Rises Despite Inflationary Costs

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(Alliance News) – Impact Healthcare REIT PLC said on Friday that its portfolio remained resilient despite economic headwinds thanks to its cautious investment strategy.

Impact Healthcare is a London-based property investment trust with a portfolio of UK healthcare real estate assets, namely care homes.

As of September 30, the company’s net asset value was £472.0 million, up 5.3% from June 30’s £448.1 million.

The company’s net asset value per share for the same period was 116.62 pence, down from 116.18 pence.

For the three months ended 30 September, the unaudited total book return for the quarter was 1.8%, comprising dividends paid during the quarter of 1.635 pence per share and growth of 0.44 pence per share in the net asset value.

Impact Healthcare said its “conservative” financing and investment strategy has helped manage the current environment of rising interest rates.

During the quarter, it also benefited from long-term leases, with 100% of its rental income linked to inflation with floors and caps, making it easier to mitigate rising interest charges.

Impact Healthcare added that its tenants’ demand for services was based on needs rather than wants, and was not directly correlated to broader economic conditions.

Following this logic, tenants have seen the recovery in occupancy rates continue, to 87% at 30 September against 85% at 30 June.

Although utility and food costs rose to 3.7% of revenue in the 8-month period ending August 31, Impact Healthcare said they were still at manageable levels.

As of September 30, the group’s gross loan to value ratio stood at 21% compared to 23% in the previous quarter. It has total available credit facilities of £206.0 million, of which £130.6 million is currently drawn.

The portfolio was valued at £543.0m at the same date, up 0.8% from £530.2m at June 30.

The company has declared an interim dividend for the period of 1.635p per share, payable on November 25 to shareholders of record on November 4.

Impact Healthcare shares traded up 0.4% at 96.80 pence apiece in London on Friday afternoon.

By Holly Beveridge; [email protected]

Copyright 2022 Alliance News Limited. All rights reserved.

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