Impact Healthcare REIT Posts GBP9 Million Pretax Profit

LONDON (Alliance News) - Impact Healthcare REIT PLC on Wednesday reported pretax profit of GBP9.4 million for the period from since inception, November 7, 2016, to the end of 2017, and said that it remains well placed to continue delivering attractive and sustainable returns to shareholders for 2018 and beyond.

The investment company, which which focuses on residential care homes, said its net asset value stood at 100.65 pence per share at the end of the period. The company's property portfolio was valued at GBP156.2 million at the period end, representing an uplift on the aggregate purchase price and costs of 1.5%.

Impact Healthcare raised GBP160.2 million of equity through a fully subscribed initial public offering and vendor issue and a further GBP32.6 million through a second equity raise in November 2017.

The company paid a dividend of 4.50p per share for the period from stock market admission to 2017 end, in line with its target. For the 12 months following stock listing, the company is targeting a dividend of 6.0p per share, equating to a yield of 6% on the 100p IPO issue price.

"The fundamentals of our market are strong, with growing demand for beds and limited supply. Residential care homes will be an important part of the solution and we therefore see good prospects for the group. The company remains well placed to continue delivering attractive and sustainable returns to our shareholders for 2018 and beyond," Chairman Rupert Barclay said.

"This was a successful first period for the group. The acquisitions which followed our fully subscribed IPO have given us an excellent initial tenant group and a strong and secure revenue stream, allowing us to meet our dividend target. We have also begun the process of adding value through asset management and identified a pipeline of further acquisition opportunities," Barclay added.

Shares in Healthcare Impact were up 0.5% at 103.00 pence in afternoon trade.