Impact Healthcare Reit Share Discussion Threads

[neilyb675] 19/2/2024 15:04

80.90 - 81.30 (GBX) at 14:53:19
on Market (LSE)

[2sporrans] 30/1/2024 11:06

Muted share price response to a solid update, resulting in:

"2.7% increase in dividend target to 6.95p for the 2024 year" from 6.77p 2023, confirmed. next XD date 8th Feb, 1.6925p divi.

The sub inflation cap on the rent increases of ~4%, while it has checked back earnings and dividend growth, has had the benefit of strengthening tenant finances and even the few problem homes, now under Melrose admin., are into +ve net cashflow.

"2.2x tenant rent cover in Q3, up from 1.9x in the same quarter the previous year. This is the strongest quarterly tenant performance since the Company's inception in 2017."

While their rents may have gone up 4%pa, tenants care fees have risen at triple this rate:
"The average weekly fees the Group's tenants charge for the care they provide grew by c.12% in the 12 months to 31Dec23"

While that's tough on the clients, occupancy rates continue to rise and are now over 88%.

£185mn drawn debt, av. cost 4.56%, 95% hedged......loan to value under 28%, does not look that onerous to me.

Isn't this a good situation heading forward, along with, hopefully, inflation falling further to below the ~4% rent increase cap and increases in cost of debt financing reining in during 24-25?

[2sporrans] 13/12/2023 12:53

121SPA

Having looked at various timeframe charts v THRL + LXI,BBOX,WHR
I have to concur that the underperformance persists.
Yes, the recent bounce was muted here.

THRL, the close comparator, was badly underperforming, from when the general sell-off commenced until March 2023; then it became an outperformer, most notably since the summer.
Pretty much averaged out v IHR over the bear market timeframe.

The other REITs above, all more sensitive to the business cycle, lost a lot more earlier....
Perhaps IHR has simply 'caught up', in the sense it has reverted to some kind of mean valuation for the REIT basket?

Whatever, it's on ~25% discount to a NAV that continues to notch higher, setting a new all time high in October.
As long as the rents roll in OK + inflation upflifts, divi remains covered, debt stable/hedged, and the EPS and NAV continue to creep up, i'm happy to hold.
When rates come back down, that big discount is going to reduce in concert; well that's my expectation fwliw.

[121spa] 22/11/2023 19:50

Thanks. I still think it's underperformed though.Take a look on the chart versus other UK REITs over say the last 3 months and it seems to have mostly missed the bounce.I'm just checking I'm not missing something with the fundamentals?

[2sporrans] 20/10/2023 09:19

Good news on the rent uplift and [dividend] cover.

"......the increased rent from the 12 rent reviews completed in the quarter at an average uplift of 4.69%"


" Rent cover across our Investment portfolio remains strong at 1.8x(1) for the 12 months to 30 June 2023 . Tenants' detailed operational performance reporting for the full quarter to September will be received at the end of October 2023. Based on reporting from the tenants who report monthly (as opposed to quarterly), which covers over 80% of the Group's portfolio, we expect rent cover for the third quarter to improve on the first half of the year."

Noting the optimistic Q3 forecast.


Also, the debt is at least well hedged; does not look hugely burdensome:

"The Group purchased a further GBP50 million interest rate cap in the quarter at a cost of GBP1.76 million, which caps SONIA at 4.0% for two years. The Group has now hedged the interest rates on 98 % (GBP175 million) of drawn debt. The current average cost of drawn debt, including hedging and fixed rate borrowings, is 4.47 %. "

[gbcol] 20/10/2023 08:23

Quarterly update to 30 Sept out.

Increase in NAV to 115.08p.
Dividend declared of 1.6925p payable in Nov.

[2sporrans] 19/10/2023 16:50

121SPA

Fwiw, the underperformance seems to have levelled out the past fortnight.

Whatever, all the REITS will remain under pressure while rates notch up further; the Gilt yields may rise a bit more right along the curve, even if the BOE is done.
More expensive debt [renewals] and an alternative income stream that some will perceive as lower risk.

[121spa] 27/9/2023 15:44

Any idea why this REIT seems to be performing weaker than some others of late? Thanks.

[cwa1] 25/9/2023 10:08

RBC cuts Impact Healthcare REIT price target to 115 (120) pence - 'outperform'

[a0002577] 06/6/2023 11:13

All in all, Dandigirl. a good deal methinks - so long as there is nothing else to be discovered. But then WAS1 started off with a mild RNS.

I am not into this one but look at it to see how is doing vis a vis its competitors which I am invested in.

[18bt] 05/6/2023 07:30

This looks very messy, but Mahesh Patel does seem to have a strong record and there seems a reasonable prospect of receiving all the rent in full eventually whilst having a materially strong convenant. It would have been much better if they could have found an unconnected 3rd party to do the deal, but that presumably wasn't on the table. It's wait and see for me, but not sure the market will like the income reduction.

[dandigirl] 02/6/2023 17:43

I suppose this evening's RNS is positive news?
Thoughts anyone?
Wonder what will happen to the share price Monday a.m.

[rhatton] 31/5/2023 17:14

Nice trade to close the day…

[gbcol] 25/4/2023 09:36

NAV up in qtr with property valuations up a tad. NAV now at 112.60p

“NET ASSET VALUE
-- Unaudited net asset value ("NAV") as at 31 March 2023 was GBP466.6 million, 112.60 pence per share. This represents an increase of GBP20.6 million (2.43 pence per share), against the 31 December 2022 NAV of GBP445.9 million, 110.17 pence per share.”

[rhatton] 09/3/2023 10:28

This has held up pretty well last few months but looks to be going back to 90p or so.

I guess there’s other yielding assets that are perceived to be safer at the moment.

[edward3] 24/1/2023 11:38

Can see no reason why not ..

[rhatton] 23/1/2023 10:51

What are expectations of dividends this year? Share pad showing 1.7p per quarter?

[catch007] 10/1/2023 10:52

Makes me wonder if the vendor was experiencing trading challenges.

[18bt] 10/1/2023 07:34

New acquisition - 80% debt with shares being issued at a premium. Amazed he vendors agreed to it. Presumably it creates negative goodwill. Anyway, it's a 7% yield, so good incremental revenue over the funding costs.

[2sporrans] 21/10/2022 11:12

Given the underpinning, non-cyclical, Tenant business stays as healthy as this, Impact looks like it will weather the difficult general environment OK.

*Occupancy up 1.9% over the qtr.

*Fees increasing in line with inflation:
"....up 10.7% on the average for the third quarter of 2021."

*"...rent cover in the third quarter is expected to be higher than in the second quarter".

While the rents are capped at 4%, pretty much, the nominal figures look ok.
Debt looks Ok in this context.
Given a BOE hike of 1% in Nov. the av. weighted cost of debt will rise from 3.9% to 4.13%.
"....the Group can repay the Metro facility [£15.3mn drawn], which expires in June 2023, from available headroom on its remaining facilities.
There's £40mn [2% margin] undrawn from HSBC that i guess will provide...
The next debt repayment - CYBC, just £5mn drawn - lands March 2024; the HSBC follows in April 2025.
By then, hopefully, inflation subdued and a fresh economic upcycle underway.

All in all, while portfolio growth is going to be stunted over the interim and the property valuations come under pressure, the basic model remains robust, at least to my semi-educated eye.
Suppose the share price could go a fair lot lower if Gilt yields go over 5%.
[Also, can get 2.5% from money markets now and rising which incentivises larger investor cash balances significantly.]

Think I'll drip-dip buy some more here, for the divi and eventual share price rebound; but gradually.

[18bt] 21/10/2022 08:41

Strong update showing just what value exists in the share at the current share price

[cwa1] 10/10/2022 07:36

10 October 2022

Impact Healthcare REIT plc

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

A PROFITABLE DISPOSAL ABOVE LATEST BOOK VALUE OF A NON-CORE CARE HOME AND SMALLER RELATED PARTY TRANSACTION

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 sold a non-core care home for GBP2.65 million, 4 per cent. above the latest book value as at 30 June 2022.

Impact has completed on the sale of Attlee, a 68 bed care home in Wakefield, acquired as part of the seed portfolio in March 2017. The home was not a long-term strategic asset for Impact or the tenant, Minster Care Management Limited ("Minster") and as part of the Group's active portfolio management strategy, was jointly marketed.

As part of the sale Impact has entered into a lease surrender with Minster for nil consideration. Minster is deemed to be a related party of the Company under the Listing Rules. The lease surrender with Minster is therefore deemed to be 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).

[starpukka] 28/9/2022 12:40

Bought in today at around 98.5.

[2sporrans] 28/9/2022 11:41

BOE has put QT on ice.

Instead it is NOW buying v. long dated Gilts!!!!
QE is back on.

You couldn't make it up.


Stopped the REITs rot.....for now at least.

[2sporrans] 28/9/2022 09:31

Jeez......
Was expecting Kwartang to shift towards moderating and deferment, not to announce further unfunded fiscal largess.
The gilts and £ are shrieking to back-track; has he head of bone?
BOE seems in paralysis:
Fear that emergency jack-up just exacerbates woes?