21st Oct 2022 14:29
(Alliance News) - Impact Healthcare REIT PLC on Friday said its portfolio remains resilient despite economic headwinds thanks to its prudent investment strategy.
Impact Healthcare is a London-based real estate investment trust with a portfolio of UK healthcare real estate assets, namely care homes.
At September 30, the firm's net asset value was GBP472.0 million, up 5.3% from GBP448.1 million on June 30.
The firm's NAV per share for the same period was 116.62 pence, up from 116.18p.
For the three months ended September 30, the unaudited total accounting return for the quarter was 1.8%, comprising dividends paid in the quarter of 1.635p per share and 0.44p per share growth in NAV.
Impact Healthcare said its "conservative" financing and investment strategy helped with managing 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, thus making it easier to mitigate rising interest costs.
Impact Healthcare added that demand for the services of its tenants was need-based, rather than want-based, and did not directly correlate to wider economic conditions.
Following this logic, tenants saw the continuing recovery of occupancy ratios, up to 87% at September 30 from 85% on June 30.
Although utility and food costs rose, at 3.7% of revenues in the 8-month period to August 31, Impact Healthcare said they were still at manageable levels.
At September 30, the group's gross loan to value ratio was 21%, compared to 23% in the previous quarter. It has total available debt facilities of GBP206.0 million, of which GBP130.6 million is currently drawn.
The portfolio was valued at GBP543.0 million on the same date, up 0.8% from GBP530.2 million on June 30.
The firm declared an interim dividend for the period of 1.635p per share, payable on November 25 to shareholders on the register on November 4.
Impact Healthcare shares were trading 0.4% higher at 96.80 pence each in London on Friday afternoon.
By Holly Beveridge; [email protected]
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