REG - Impact Healthcare - INTEREST RATE CAP AND HEDGING UPDATE

Impact Healthcare REITAnnouncement

18/08/2023 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:20230818:nRSR7048Ja&default-theme=true

RNS Number : 7048J  Impact Healthcare REIT PLC  18 August 2023

The information contained in this announcement is restricted and is not for
publication, release or distribution in the United States of America, any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.

 

18 August 2023

Impact Healthcare REIT plc

("Impact" or the "Company" or, together with its subsidiaries, the "Group")

NEW £50 MILLION INTEREST RATE CAP AT 4%. 92% OF DRAWN DEBT IS NOW HEDGED

In the first half year results announcement on 9 August 2023, the Group
indicated that it was looking to increase the level of hedging in place. The
Board of Directors of Impact Healthcare REIT plc (ticker: IHR), is pleased to
announce that it has completed this process, and the Group has purchased a new
£50 million interest rate cap, which caps SONIA at 4.0% for two years
expiring on 15 August 2025, at a cost of £1.76 million.

The Group has now hedged or fixed the interest rates on 92% (£175 million)(1)
of its current drawn debt of £191 million. The weighted average cost of drawn
debt is 4.66%(2) based on SONIA of 5.4%. At current hedging and drawn debt
levels, an increase of 50 bps in SONIA will result in a 4 bps increase in the
weighted average cost of drawn debt(2).

The Group's gross loan to value ("LTV") ratio at 30 June 2023 was 28.5%.  No
further debt has been drawn at the date of this announcement.

FOR FURTHER INFORMATION, PLEASE CONTACT:

 Impact Health Partners LLP                                                             Via H/Advisors Maitland
 Mahesh Patel
 Andrew Cowley
 David Yaldron

 Jefferies International Limited                                                        +44 20 7029 8000
 Tom Yeadon                                    tyeadon@jefferies.com
 Neil Winward                                  nwinward@jefferies.com
 Ollie Nott                                    onott@jefferies.com

 Winterflood Securities Limited                                                         +44 20 3100 0000
 Neil Langford                                 neil.langford@winterflood.com
 Joe Winkley                                   joe.winkley@winterflood.com

 H/Advisors Maitland (Communications advisor)                                           +44 7747 113 930
 James Benjamin                                impacthealth-maitland@h-advisors.global
 Rachel Cohen

 

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 is a specialist and responsible owner of care homes
and other healthcare properties across the UK. Elderly care is an essential
service and demand for it is high and continues to grow as the UK's population
gets older. We work with our tenants so we can grow together and help them
care for more people, while continuing to improve our homes for their
residents.

 

We take a long-term view and look to generate secure and growing income. This
has allowed us to provide our shareholders with attractive and rising
dividends and the potential for capital growth.

 

The target total dividend for the year ending 31 December 2023 is 6.77 pence
per share(3), a 3.5% increase over the 6.54 pence in dividends paid per
ordinary share for the year ended 31 December 2022.

 

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

(1)     £175 million of debt currently hedged from: £75 million of loan
notes fixed at 3% expiring in 2035. £50 million interest rate cap at 3%
expiring in January 2025. £50 million interest rate cap at 4% expiring in
August 2025.

(2)     Weighted average cost of drawn debt is based on £191 million
excluding arrangement fees and cost of interest rate caps.  This reflects the
ongoing cash cost of the drawn debt.

(3       ) 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  MSCSFWFAWEDSEDA