Impact Healthcare profits surge as NAV inches higher

(Sharecast News) - Health-focussed real estate investment trust Impact Healthcare REIT reported an increase in its dividend per share to 6p in its full-year results on Thursday, compared to 4.5p in the prior year.The London-listed firm's profit before tax surged to £16.47m in the year ended 31 December, from £9.46m, while earnings per share improved to 8.57p from 5.82p year-on-year.On an EPRA basis, earnings per share were 6.47p, rising from 4.25p, while adjusted earnings per share increased to 5.07p from 4.39p in 2017.Impact Healthcare's contracted rent roll rose to £17.78m from £11.86m year-on-year, while its portfolio valuation grew to £223.8m from £156.2m.Its net asset value per share totalled 103.18p at year-end, from 100.65p at the end of 2017, while its share price at the end of the 12 month period was 103.5p from 102.38p year-on-year.The company's loan-to-value ratio stood at 11.6% at the end of 2018, rising from nil at the end of 2017.On the operational front, Impact Healthcare noted that it acquired 15 care homes with 830 beds, adding four new tenants during the year.At year-end, it had committed to £15.4m of capital improvement programmes since its initial public offering, which the board said would add 188 beds to the portfolio.A total of 96 of those beds were completed and in operation by 31 December.The firm's weighted average unexpired lease term stood at 19.5 years as at 31 December, with rent reviews during the year adding £0.5m to contracted rent, representing a 3.95% increase on the associated portfolio."This was a year of considerable growth, in line with the strategy we set out at IPO, and we remain well placed to deliver value in the short and longer term," said Impact Healthcare chairman Rupert Barclay."The placing programme will give us the capacity to acquire further high-quality homes, increasing our diversification and reducing risk."Barclay said the company had "strong relationships" with a growing number of capable tenants, who offered an "essential regulated service" and provided high quality care.He explained that underpinned the firm's new progressive dividend policy and total return target, which in turn reflected the board's confidence in the group's prospects."This in turn ensures the group has a secure income stream. This stands us in good stead in an uncertain economic and political environment."