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announcement is restricted and is not for publication, release or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, Canada, Australia, Japan or the
Republic of South Africa.
2 July
2024
Impact Healthcare REIT
plc
("Impact" or the "Company" or, together with its
subsidiaries, the "Group")
DISPOSAL AT LATEST BOOK VALUE
OF FIVE NON-CORE CARE HOMES FOR £8.8 MILLION
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, announces
that as part of its active portfolio management policy the Group
has exchanged contracts for the sale of five non-core care homes
for £8.8 million, which is in line with the latest valuation of
these homes as at 31 March 2024.
Impact has exchanged on the sale of
three care homes in East Yorkshire for a total consideration of
£4.3 million: Ashgrove Care Home, a 56-bed care home
in Cleethorpes; Emmanuel House, a 44-bed care home
in Hessle; and Hamshaw Court, a 45-bed care home in Hull. The
purchaser is a local owner and operator of care homes, and the
transaction is subject to re-registration of the care home
operations from the current tenant, Minster Care Management Limited
("Minster"), to the purchaser which requires the approval of the
independent regulator, the Care Quality Commission ("CQC").
Completion is expected during the third quarter of this
year.
In addition to the above disposals,
Impact has exchanged and simultaneously completed on the sale of
two care homes for a total consideration of £4.5 million: Eryl Fryn
Care Home, a 30-bed care home in Llandudno, Wales; and Stansty
House Care Home, a 73-bed care home in Wrexham. Eryl Fryn Care Home
and Stansty House Care Home were sold to an affiliate of Minster.
In assessing the merits of the transaction with an associate of
Minster, the Company commissioned a second independent valuation,
which supported the sale price. Minster is deemed to be a
related party of the Company under the Listing Rules. The sale of
Eryl Fryn Care Home and Stansty House Care Home is a smaller
related party transaction for the purposes of Listing Rule 11.1.10R
and this announcement is therefore made in accordance with Listing
Rule 11.1.10R(2)(c).
Impact acquired the five care homes
as part of its IPO seed portfolio in May 2017. The homes have
either had a history of relative under-performance, have low EPC
scores or are smaller than the ideal size for a care home (the
average size of homes in the Impact portfolio is 56 beds).
Following the sales, Impact will own 135 properties. The disposal
of these five homes will help improve the sustainability
performance of the Group's portfolio either by reducing our
exposure to homes with an EPC C or D, or disposing of homes that
have higher CO2e emissions per m2 than the portfolio average
(portfolio average 2023: 54kg CO2e per m2).
Impact has achieved an unlevered IRR
on these non-core homes from purchase to sale of 6.6% per annum. On
the whole of the Minster and Croftwood IPO seed portfolio its
unlevered IRR from May 2017 to March 2024 is 10.5% per annum. Once
completed, these transactions will also reduce the Group's exposure
to the Group's largest tenant.
FOR
FURTHER INFORMATION, PLEASE CONTACT:
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Impact Health Partners LLP
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Via H/Advisors Maitland
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Andrew Cowley
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David Yaldron
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Jefferies International Limited
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+44 20 7029 8000
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Tom Yeadon
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tyeadon@jefferies.com
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Ollie Nott
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onott@jefferies.com
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Winterflood Securities Limited
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+44 20 3100 0000
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Neil Langford
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neil.langford@winterflood.com
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Joe Winkley
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joe.winkley@winterflood.com
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H/Advisors Maitland (Communications advisor)
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impacthealth-maitland@h-advisors.global
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James Benjamin
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+44 7747 113 930
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Rachel Cohen
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+44 20 7379 5151
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Billy Moran
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+44 20 7379 5151
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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 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's dividend policy is to
seek to maintain a progressive dividend that is covered by adjusted
earnings.
On this basis, the target total
dividend for the year ending 31 December 2024 is 6.95 pence per
share(1), a 0.18 pence increase over the 6.77 pence in dividends paid or
declared per ordinary share for the year ended 31 December
2023.
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.
Notes:
(1) 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.
