Impact Healthcare Reit Share Discussion Threads

[2sporrans] 24/9/2022 11:44

Wonder how much of the very recent share price drops across REITs is down to the phoenix like re-emergence of significant bond yields?
Like 4.1% on a 5 yr gilt now; not seen that high since 2008.
IG corporate spread is??
There is now competition; lower risk income streams, esp. wrt capital.

These bond yields are set to rise over coming months.

Bought into the dip here non-the-less [been waiting for a discount to NAV].
Negligible, if any, cyclical risk to the dividend. [growth in line with ~4% max collared rent rises?]
The NAV will be vulnerable [in a muted way] to a general property slump, should one happen.
Then again, Trussite economics may keep the pot simmering.

[pdriccio] 23/9/2022 14:04

Taken a small position today, seems good value at this level.

[cwa1] 13/9/2022 08:02

Tipped in The Telegraph's Questor column:-

[18bt] 05/9/2022 07:37

Ultimately care home fees are going to have to rise along with the price of everything else. For a lot of families, they have little choice but to pay.

[rhatton] 03/9/2022 10:56

Anyone here think there’s a risk of rising energy prices squeezing margins?

Although in hindsight it will be the tenant facing higher energy costs I guess

Apologies if it’s been mentioned in the recent report but I didn’t go through it thoroughly

[cwa1] 25/8/2022 08:13

XD this morning. Pay day 9/9

[18bt] 16/8/2022 08:27

Just put a reasonably large buy through - more inflation protection in my portfolio and relatively recession-proof and long term demand.

[18bt] 16/8/2022 07:21

Looks like they have scope for a further dividend uplift or special at YE

[cwa1] 16/8/2022 07:11

Half year results are out:-



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

"We are a responsible long-term owner of a diversified and resilient portfolio of well run and financially stable care homes that have established care quality and financial track records. W e lease them on long-term leases to tenants who we partner with to ensure high ongoing operational standards and care.

Against a challenging and uncertain backdrop, our business continues to demonstrate its high level of in-built resilience, underpinned by a sector that is largely uncorrelated with the wider economy. This is demonstrated by our 100% collection of rent since our IPO in March 2017, with no lease variations, and a healthy rolling 12-month rent cover of 1.85x(2) . This underlines our tenants' ability to manage the inflationary challenges in the current economic environment.

This has helped us to deliver a strong set of results for the first half of 2022, with our NAV per share up 3.3% and NAV up 13.7% since 31 December 2021, profit before tax up 88% on the same period in 2021, and progressive inflation-linked dividends declared for the period well covered by earnings. We delivered a total accounting return for the six-month period of 6.2%, and we are well placed to deliver our 9% per annum medium-term total accounting return target(1) .

These robust results are primarily driven by the market value uplifts received on our portfolio, underpinned by our inflation-linked rent reviews, stable operator performance and our maintenance of a conservatively managed balance sheet.

The Group is well positioned to continue to deliver attractive sustainable returns to shareholders through its covered progressive dividend, further strong capital growth potential and value creation capabilities of our resilient portfolio for the benefit of all our stakeholders. "

[2sporrans] 08/7/2022 12:34

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 16:19

How much were they looking to raise?

[catch007] 06/7/2022 10:45

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 07:54

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 07:57

~ 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 17:26

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

[rhatton] 31/5/2022 17:26

Chunky sale in there tonight

[catch007] 17/4/2022 10:05

Tipped in Mail On Sunday today

[tom2022] 01/4/2022 14:08

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 17:11

Yes, with a decent sized closing auction as well

[edward3] 29/3/2022 16:43

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