Impact Healthcare REIT

H1 2023 Results: Fully covered, progressive dividend

On 9 August, Impact Healthcare REIT* (IHR) published its interim results for the six months to 30 June 2023, which was accompanied by a presentation by Andrew Cowley, Managing Partner of Impact Health Partners, and David Yaldron, Finance Director. Highlights of the H1 2023 results include:

- NAV per share +3.2% to 113.64p; NAV TR +6.2%, on track for +9.0% p.a. TR target.

- Property portfolio valued at £638m at 30 June, +2.4% on LFL basis over H1, driven primarily by inflation-linked rental uplifts.

- 98% of rent due for HY collected, with one tenant, Silverline Group, not paying rent due in advance in January. Investment manager appointed a new tenant as the operator of the seven homes previously let to Silverline. The rental default is anticipated to lead to a c.£1m reduction versus original budget for 2023.

- Adjusted earnings per share were 3.69p, +0.8% from 3.66p in H1 FY22.

- Dividends totalling 3.39p per share declared in respect of HY, in line with FY22 target of 6.77p per share.

- Dividend cover based on adjusted earnings was 109%.



*Denotes a corporate broking client of Winterflood Securities