Impact Healthcare REIT PLC INTEREST RATE CAP AND HEDGING UPDATE (7048J)
August 18 2023 - 1:00AM
UK Regulatory
TIDMIHR
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is not for publication, release or distribution in the United
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(other than the Republic of Ireland or the Netherlands and then
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18 August 2023
Impact Healthcare REIT plc
("Impact" or the "Company" or, together with its subsidiaries,
the "Group")
NEW GBP50 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 GBP50 million
interest rate cap, which caps SONIA at 4.0% for two years expiring
on 15 August 2025, at a cost of GBP1.76 million.
The Group has now hedged or fixed the interest rates on 92%
(GBP175 million)(1) of its current drawn debt of GBP191 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 Via H/Advisors
LLP Maitland
Mahesh Patel
----------------------------------------- ---------------
Andrew Cowley
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D avid Yaldron
----------------------------------------- ---------------
Jefferies International +44 20 7029
Limited 8000
---------------
Tom Yeadon tyeadon@jefferies.com
----------------------------------------- ---------------
Neil Winward nwinward@jefferies.com
----------------------------------------- ---------------
Ollie Nott onott@jefferies.com
----------------------------------------- ---------------
Winterflood Securities +44 20 3100
Limited 0000
---------------
Neil Langford neil.langford@winterflood.com
----------------------------------------- ---------------
Joe Winkley joe.winkley@winterflood.com
----------------------------------------- ---------------
H/Advisors Maitland +44 7747 113
(Communications advisor) 930
---------------
James Benjamin impacthealth-maitland@h-advisors.global
----------------------------------------- ---------------
Rachel Cohen
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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 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) GBP175 million of debt currently hedged from: GBP75 million
of loan notes fixed at 3% expiring in 2035. GBP50 million interest
rate cap at 3% expiring in January 2025. GBP50 million interest
rate cap at 4% expiring in August 2025.
(2) Weighted average cost of drawn debt is based on GBP191
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.
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