(Alliance News) - Impact Healthcare REIT PLC on Tuesday reported solid growth as profit nearly doubled due to market value uplifts, which also increased portfolio value.
Impact Healthcare REIT is a London-based real estate investment trust focused on healthcare properties.
For the six months ending June 30, Impact Healthcare reported an 88% increase in pretax profit to GBP27.3 million from GBP14.5 million a year prior, as a result of a GBP13.4 million market value uplift in investment properties.
In addition, as at June 30, net asset value per share increased 5.0% to 116.18 pence from 110.66 pence a year before. The company said these "robust" earnings were primarily driven by market value increases in its portfolio.
Impact Healthcare's property investments were independently valued 15% higher at GBP568.9 million from GBP496.9 million at the end of December. On a like-for-like basis, the portfolio value increased 4.9% over the same period, which, the company said, can be attributed to inflationary rental uplifts.
Impact Healthcare declared an interim dividend of 1.635 pence per share, which is in line with its total dividend target of 6.54 pence per share for the year.
During the first half, the company acquired seven home and exchanged contracts with existing tenants to acquire an additional three.
Looking ahead, the company will move into phase two of a new link building at Fairview House and Fairview Court in Bristol, which involves extensive refurbishment.
Impact Healthcare said it has a number of projects in the planning or tender phase, which it hopes to finalise over the next six months.
Chair Rupert Barclay said: "The company's business model remains robust and resilient, as demonstrated by the Group's continued 100% rent receipt and healthy rent cover... 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 portfolio for the benefit of all our stakeholders."
Shares in Impact Healthcare were marginally up at 120.20 pence in London on Monday afternoon.
By Dominique Pretorius; dominiquepretorius@alliancenews.com
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Impact Health (IHR)