Impact Healthcare - Acquisition of Two Care Homes and New Tenant
22/08/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220822:nRSV6568Wa&default-theme=true
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The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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 £14 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 £14.0 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 £550k, 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 £14.0 million of capital,
plus transaction costs, followed by additional asset management and
development opportunities;
· the initial annual rent has been agreed at £890,000, 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 LLP Via Maitland/AMO
Mahesh Patel
Andrew Cowley
David Yaldron
Jefferies International Limited +44 20 7029 8000
Tom Yeadon tyeadon@jefferies.com
Neil Winward nwinward@jefferies.com
Winterflood Securities Limited +44 20 3100 0000
Neil Langford neil.langford@winterflood.com
Joe Winkley joe.winkley@winterflood.com
Maitland/AMO (Communications adviser) +44 7747 113 930
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 (http://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, the 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END ACQUKOURUAUWAAR