Impact Healthcare Reit Share Discussion Threads

[2sporrans] 08/7/2022 11:34

A just question rH

To which i know no precise answer.

However, as a proximate guide, the Proposal RNS did state this:

"The Company is in advanced negotiations to acquire six portfolios, consisting of 27 separate care homes, for a total value of approximately £169 million (the "Pipeline"). Whilst some of these homes can be acquired from the Company's existing resources, including available debt headroom (after accounting for upcoming capital commitments) of £70 million, as well as new debt to be put in place alongside the acquisitions, the Company will require new equity in order to complete on all the potential opportunities."

From which one can deduce that if all the debt headroom were exhausted....Impact still require ~£100mn new capital/debt + other existing resources [undeclared] for their ambitions to buy another 6 portfolios to be realised.

Well, £22mn capital raise just now leaves ~£78mn proposed spend to be sourced either from other existing resources [? not a lot] or new debt raise; I'm assuming they won't be passing out the hat for another capital raise any time soon.

So, if say they content themselves with buying just 3 portfolios [the pick], does this pose any great problem?
Don't think so.

Having said, maybe the share price wants to knock off a few more pence before investor appetite returns to where it was before the placement/subscription announcement.
A modest discount to NAV seems more appropriate than the current small premium.

[rhatton] 06/7/2022 15:19

How much were they looking to raise?

[catch007] 06/7/2022 09:45

I did not subscribe this time round last fund raise was very recent. Lacklustre amount raised confirms unattractive price, poor timing and lack of appetite from investors imho.

[cwa1] 06/7/2022 06:54

Not a resounding success unfortunately:-

Results of the Placing and Offer for Subscription

Further to the Company's announcement on 22 June 2022, the Board of Directors (the "Board") of Impact Healthcare REIT plc (ticker: IHR), the real estate investment trust which provides investors with exposure to a diversified portfolio of UK healthcare real estate assets, in particular care homes, announces that its Placing and Offer for Subscription have raised total gross proceeds of approximately GBP22.3 million through the issue of 19,032,420 New Ordinary Shares at a price of 117 pence per share . 17,316,722 of these shares will be issued via the Placing and 1,715,698 shares will be issued via the Offer for Subscription.

Application has been made for the New Ordinary Shares to be admitted to the premium segment of the Official List of the Financial Conduct Authority and to trading on the London Stock Exchange's main market for listed securities ("Admission"). It is expected that Admission will take effect, and dealings in the New Ordinary Shares will commence, at 8.00 a.m. (London time) on 8 July 2022.

Rupert Barclay, Chairman of Impact Healthcare REIT plc, said:

"I would like to thank new and existing shareholders for their support in this fundraise, which will help to grow further our inflation linked, long leased REIT. Whilst equity capital market conditions remain challenging, the proceeds of this fundraise will allow the Company to progress its acquisition pipeline as well as allowing further scope to invest into additional accretive asset management initiatives, thereby modernising, extending and improving homes in the portfolio for the benefit of shareholders, tenants and their underlying residents. "

Immediately following Admission, the Company will have 404,764,328 ordinary shares in issue and therefore the total voting rights in the Company will be 404,764,328. This figure may be used by shareholders as the denominator for the calculations by which they may determine whether or not they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

Terms not otherwise defined in this announcement have the meanings given to them in the announcement published by the Company on 22 June 2022.

[speedsgh] 22/6/2022 06:57

~ Proposed placing/offer for subscription at 117p to help fund purchase of 6 portfolios (comprising 27 separate care homes) for approx £169m.
~ Placing price represents 1.8% premium to 114.93p unaudited NAV as at 31/3/22.
~ Placing shares will be eligible for next quarterly dividend to be declared in Aug. ~ 6.54p target total dividend for FY22 (offering 5.6% yield on placing price).
~ IHR has history of paying covered dividends.

Proposed Placing and Offer for Subscription -

[cwa1] 31/5/2022 16:26

Yes, big volume and a hefty drop in the share price to boot

[rhatton] 31/5/2022 16:26

Chunky sale in there tonight

[catch007] 17/4/2022 09:05

Tipped in Mail On Sunday today

[tom2022] 01/4/2022 13:08

One thing I like about IHR is that they mention in some detail the limits to the inflation linked uplifts. We know we are only getting 4% uplifts with RPI at 7%+. If inflation stays this high for a decade we will get a poor real return, but we know the risk.

SUPR only say "85% of rental income for the Direct Portfolio directly linked to inflation." I searched the annual report and found no mention of any caps or floors. But, I found a spreadsheet on their website - many of these leases have a 1% floor and 3% cap. Many have 5 yearly rent reviews. "Directly linked to inflation" is not as honest as it could be.

[cwa1] 29/3/2022 16:11

Yes, with a decent sized closing auction as well

[edward3] 29/3/2022 15:43

Nice little spike at the end of todays trading ..

[nerja] 16/3/2022 17:32

Thrl down this week as well, the utilities are down today maybe switching going on.

[edward3] 16/3/2022 15:17

Why the drop was trading at 1.17 earlier .. only red in my portfolio

[chique] 19/2/2022 15:27

Yes , was thinking about the immediate dividend going back to placing shares so really 114 minus at least first divi

[gbcol] 19/2/2022 13:43

Not the best share price reaction. Presumably will also fall when it goes ex div next week. With hindsight, buying into OO wasn’t the best idea this time but can never tell. Topped up my OO shares in market and will look to add a few more if it does fall further as I’m predominantly here for the divi income.

[chique] 19/2/2022 07:56

So this placing is the first of a few placings

[cwa1] 17/2/2022 08:06

Slightly better than I had expected given market wobbles and the share price being around the offer price, so no big incentive to buy. Onwards and hopefully upwards in time...

[gbcol] 17/2/2022 07:17

£40million raised against £50million target, which I would say is a fairly decent effort with current market uncertainties, although not outstanding.

I’ve taken an initial position here and will look to add when I can.

[18bt] 02/2/2022 17:26

For a lot of others, shareholders haven't even had an option to subscribe at the offer price, whatever it was.

[uncle_sam] 02/2/2022 15:15

Treated "properly"? Hmm. Sp right now 115, offer price to shareholders 114. Not exactly an incentive there ...

[18bt] 27/1/2022 07:57

New fund raise, but shareholders at last being treated properly by a REIT raising money. Well done IHR - I will support.

[cwa1] 23/12/2021 14:21

And there's more...



The Group has invested in a portfolio of 12 care homes which were owned and operated by Kingdom Homes whose owners are retiring from the care home business. All of the homes will be operated by an existing Group tenant, Holmes Care Group, and are located in Fife, Scotland, offering 480 high quality en-suite beds, located within established residential areas.

[cwa1] 23/12/2021 08:14

ACQUIRES THREE CARE HOMES FOR £14.3 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, is pleased to announce that the Group has recently completed the acquisition of a property and exchanged contracts to acquire two further properties all with existing Group tenants.



Once completed, these transactions are expected to deliver the following benefits to the Group:

· enable the Company to deploy £14.3 million of capital, plus transaction costs;

· these acquisitions will add three care homes comprising 208 beds to the Group's portfolio, which will then total 112 care homes and 6,191 beds (at 30 September 2021: 108 homes and 5,900 beds);

· increase the Group's contracted annual rent roll to £35.5 million, a 4.7% increase on contracted annual rent at 30 September 2021 of £33.9 million;

· EPC ratings of B 1 on two homes and EPC C 1 on the third home with a strategy to deliver an EPC B;

· rent cover at the acquisition of each care home will be approximately two times; and

· all of the acquisitions will be leased on Impact's new improved green leases (the "Group's standard lease"), with fixed terms of 25 years and annual upward-only rent reviews linked to the Retail Price Index ("RPI"), with commitments from each tenant to a minimum annual expenditure on the maintenance of the care homes.



Springhill Nursing care home in Kilmarnock, Scotland, for £3.25 million

Earlier in the quarter, the Group completed the acquisition of Springhill Nursing care home in a sale and lease back with Silverline, one of the Group's existing tenants. Springhill, located in Kilmarnock, Scotland, is a four storey Georgian building with a substantial purpose-built extension offering a total of 61 beds with en suite wet room facilities. The Group paid a net purchase price of £3.25 million with an initial annual rent of £243,000 with rent cover at acquisition of just under two times. The acquisition price reflects gross initial yield of 7.5%. The home has an EPC rating of C531 with a strategy to achieving an equivalent EPC rating of B. Silverline has entered into the Group's standard lease, with a fixed term of 25 years with no break clauses and RPI uplifts of between 2% and 4% per annum. Silverline has committed to a minimum annual expenditure on the maintenance of the care homes.



Portfolio of two care homes in Northern Ireland leased to Electus Healthcare for £11.02 million

The Group has exchanged contracts for the acquisition of two care homes in Northern Ireland, subject to re-registration with the Regulation and Quality Improvement Authority, which is expected to be procedural. Both care homes are purpose-built in established residential areas and provide a combined total of 147 en suite bedrooms. One of the homes is located in the north-west of Belfast, the second in the coastal town of Larne. Both homes have an EPC rating B1. The two homes will be operated by an existing tenant, Electus, and take our total care homes in Northern Ireland to five with 340 beds.



The Group is to pay a net purchase price of £11.02 million to the vendors. The initial annual rent has been agreed at £854,500, reflecting a gross initial yield of 7.8%. Rent cover at acquisition will be two times.



Electus will enter the Group's standard leases, with a fixed term of 25-years with no break clauses. The rents receivable under the leases will be subject to annual upward-only rent reviews linked to RPI, with a floor of 2% p.a. and a cap of 4% per annum. Electus has committed to a minimum annual expenditure on the maintenance of the care homes.

[cwa1] 22/12/2021 12:33

Some reasonably cheap debt has been secured...

[sharesoc] 02/11/2021 09:53

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