Impact Healthcare REIT reports increased annual profit
London-based Impact Healthcare REIT has reported 2021 pre-tax profit of £32 million, up from 2020 pre-tax profit of £28.8 million.
As the end of 2021, the portfolio was valued at £459.4 million, an increase of £40.6 million from the valuation of £418.8 million a year earlier.
The net asset value at the end of 2021 was £394.2 million or 112.43p per share (31 December 2020: £349.5 million or 109.58p per share).
Rupert Barclay, chairman of Impact Healthcare REIT, said: “We have deliberately fostered our resilience by carefully selecting tenants, putting in place leases with robust rent cover and inflation linkages and maintaining a prudent balance sheet. Our tenants have provided high-quality care during the pandemic and in turn we have received 100% of the rent due. This has underpinned a fully covered dividend for 2021.
As we emerge from the pandemic, the long-term investment case for care homes is unchanged. Occupancy is expected to continue to recover while the support from government grant funding falls away. Demographic trends and the rising incidence of specialist needs, such as dementia, will continue to drive demand for care, which will require many new beds, in suitable homes, to be added to the market. The government’s reforms will provide additional funding for the sector and contribute to its resilience.
We have a good level of protection against the current inflationary environment, through the upwards-only index-linked rent reviews in our leases.
We have a strong pipeline of accretive acquisitions, which has the potential to add attractive new assets and further tenants to the portfolio. We are also exploring further asset management and development opportunities, with a view to enhancing shareholder returns. We therefore look forward to making further progress with our growth strategy during 2022 and for the long term.”
Date published: March 29, 2022