LONDON (Alliance News) - Impact Healthcare REIT PLC hiked its 2018 dividend Thursday after its net assets and rental income jumped amid a year of "considerable" growth.
In 2018, net asset value per share widened 2.5% to 103.18 pence from 100.65p the year prior. This was after net rental income doubled to GBP17.3 million from GBP9.4 million the year before.
The health-focused real estate investment trust ended 2018 with a portfolio valued at GBP223.8 million, up 43% from GBP156.2 million. This was helped by value uplifts on rent increases and GBP55.4 million in property acquisitions during the year.
Loan-to-value ratio rose to 11.6% from no debt the year prior, after it drew down GBP26 million of a GBP50 million debt facility.
"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," Impact Chair Rupert Barclay said.
"The placing programme will give us the capacity to acquire further high-quality homes, increasing our diversification and reducing risk," Barclay added.
"We have strong relationships with a growing number of capable tenants, who offer an essential regulated service and provide high-quality care and underpin our new progressive dividend policy and total return target, which reflect our confidence in the group's prospects," Barclay continued. "This, in turn, ensures the group has a secure income stream. This stands us in good stead in an uncertain economic and political environment."
Impact paid a 6.00p per share dividend during 2018, up 33% from 4.5p the year prior. The firm has also updated its dividend policy to grow the dividend in line with inflation-linked rental uplifts received in the year prior. For 2019, the firm is targeting a 6.17p distribution.
Shares in Impact Healthcare were untraded at 106.00 pence on Thursday.
Impact Health (IHR)