Impact Health Regulatory News (IHR)

1 November 2017

Impact Healthcare REIT plc

(the "Company")

DIVIDEND DECLARATION

The Board of Directors (the "Board") of Impact Healthcare REIT plc (ticker: IHR) has declared a dividend of 1.50 pence per ordinary share for the period from 1 July 2017 to 30 September 2017. This dividend will be a Property Income Distribution ("PID").

The dividend will be payable on 30 November 2017 to shareholders on the register on 17 November 2017. The ex-dividend date will be 16 November 2017.

The Company is targeting an aggregate dividend of 6.0 pence per share for the first 12 months from Admission which equates to a yield of 6 per cent. per annum on the Initial Public Offering ("IPO") Issue Price, payable in quarterly instalments(1).

FOR FURTHER INFORMATION, PLEASE CONTACT:

Further information on Impact Healthcare REIT is available at www.impactreit.uk.

NOTES:

The Company is a real estate investment trust ("REIT") which aims to provide shareholders with an attractive return, principally in the form of quarterly income distributions and with the potential for capital and income growth, through exposure to a diversified portfolio of healthcare real estate opportunities, in particular residential care homes. The Company's investment policy is to acquire, renovate, extend and redevelop high quality healthcare real estate assets in the UK and lease those assets primarily to healthcare operators providing residential healthcare services under full repairing and insuring leases.

The Company is targeting an aggregate dividend of 6.0p per share for the first 12 months from Admission which equates to a yield of 6 per cent. per annum on the IPO Issue Price, payable in quarterly instalments(1). A fully covered dividend of 1.50p per share for the period from 7 March 2017 to 30 June 2017 was paid on 31 August 2017.

The Company's property portfolio comprises 57 residential care homes (2,527 beds), with leases of 20 years (with no tenant break right), subject to annual upward only, Retail Price Index-linked rent reviews (with a floor and cap at 2% p.a. and 4% p.a., respectively). The portfolio has an annualised rent roll of £11.6 million.

The Company and its Investment Adviser believe that residential healthcare is a significant investment opportunity in the UK, owing to both increasing demand for various forms of care from a growing and ageing population and the current reduction in the supply of suitable assets for providing that care. A well-capitalised landlord like the Company, with an experienced investment adviser, should be well positioned to deliver attractive returns to investors, while also providing stability and a commitment to enhance homes wherever possible to their residents.

The Company's IPO in March 2017 raised gross proceeds of £160 million. The Company's Ordinary Shares were admitted to trading on the main market of the London Stock Exchange, in the Specialist Fund Segment on 7 March 2017.

(1) This is a target only and not a profit forecast and there can be no assurance that it will be met and it should not be taken as an indication of the Company's actual or expected future results.