Impact Healthcare REIT continues to deliver consistently positive returns, demonstrating the resilience of its tenant operators and the group’s strategy during the pandemic. Accretive portfolio growth combined with long-term inflation-linked rents are driving income and capital growth, while continuing full rent collection underpins increasing dividends.
Companies: Impact Healthcare REIT PLC
Impact Healthcare REIT has published its FY20 annual results. Although many of the headline numbers in respect of FY20 have been previously released, the detailed results provide an opportunity to assess the strong progress made during the year, and the resilience of tenant operators and the group’s strategy, against the challenging backdrop of the pandemic. Portfolio growth with continuing full rent collection underpins the recently announced increase in targeted DPS for FY21.
In December we highlighted that ESG was the surprise ‘thematic winner’ of 2020. Perhaps not in performance terms (can anything beat the FAANGs?), but almost overnight it has become a standard part of fund presentations. Asset flows into ESG funds also back up our contention, with huge growth in assets seen by ESG-related funds during 2020. However, as we discussed in December, within the equity trust universe there are relatively few equity trusts that offer ‘pure’ exposure to the theme. And of
Companies: UKW IHR NESF USF TRIG
Impact Healthcare REIT’s tenant care home operators have demonstrated a high level of resilience during the pandemic, and the vaccine roll-out, which is proceeding quickly, should support efforts to rebuild occupancy. Rents have continued to be paid in full, as expected, and with the FY20 DPS target met, the FY21 target is increased by 1.9%, fully covered by our FY21e adjusted (cash) earnings. We expect continuing, selective and accretive acquisitions as available capital is deployed.
With care home COVID-19 infection rates continuing to decline, and continuing full rent collection, Impact has reaffirmed its intention to pay its Q220 DPS in line with expectations. Across the sector, the pandemic has created operational challenges for care home operators, including Impact’s tenants, but it has also highlighted the essential service that the sector provides. This may have the positive effect of permanently improving resident funding and support investment to meet the increasing
Impact Healthcare REIT (IHR) owns a portfolio of care homes which it lets to operators on long-dated, inflation-linked leases with upwards-only rent revisions. The tenants are responsible for the maintenance of the properties during the length of the lease, and contracts give IHR the right to rescind the leases if their financial performance deteriorates below a certain level (even if rent is being paid). The manager, Impact Health Partners, has built a portfolio with a core of high-quality asse
UK care home demand is driven by a growing elderly population with increasing care needs rather than by the economy. In the face of COVID-19, the operational performance of Impact’s tenants has thus far been reassuring with no impact on rent collection or quarterly DPS, and we expect no material effect on the positive long-term fundamentals. Indeed, by highlighting the essential role that the sector performs, the pandemic may have the positive effect of permanently improving resident funding.
A number of REITs have the ability to thrive in current market conditions and thereafter. Not only do they hold assets that will remain in strong demand, but they have focus and transparency. The leases and underlying rents are structured in a manner to provide long visibility, growth and security. Hardman & Co defined an investment universe of REITs that we considered provided security and “safer harbours”. We introduced this universe with our report published in March 2019: “Secure income” REI
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Impact Healthcare REIT – Results of fundraising | Hipgnosis Songs – Acquisition | Greencoat UK Wind – Fundraising prospectus and timetable | Triple Point Social Housing – Response to BEST regulatory announcement
Companies: IHR SONG UKW SOHO
Blackstone / GSO Loan Financing – Finals to 31 December 2018 | Impact Healthcare REIT – Q1 2019 NAV and dividend
Companies: Blackstone Loan Financing Ltd. (BGLF:LON)Impact Healthcare REIT PLC (IHR:LON)
Impact Healthcare REIT – Acquisition and fundraising update | PRS REIT – Acquisitions | TwentyFour Income – Results of placing | Real Estate Credit Investments – Interims to 30 September 2018
Companies: IHR TFIF RECI
Supermarket Income – Rent reviews | Impact Healthcare REIT – Acquisition | EJF Investments – Issue and repurchase of shares | Phaunos Timber – Compulsory acquisition of shares
Companies: SUPR IHR EJFI PTF
NextEnergy Solar – Update on preference shares | Impact Healthcare REIT– Q3 2018 NAV and dividend
Companies: Nextenergy Solar Fund (NESF:LON)Impact Healthcare REIT PLC (IHR:LON)
Synccona - Q2 2018 update | Tritax Big Box – Interims to 30 June 2018 | Impact Healthcare REIT – Interims to 30 June 2018
Companies: SYNC BBOX IHR
Research Tree provides access to ongoing research coverage, media content and regulatory news on Impact Healthcare REIT PLC.
We currently have 15 research reports from 5
Today's results include few surprises in terms of cash outcomes, which are in-line with our FY21E forecasts. These record results come despite the year being challenged by Covid-19, evidencing the resilience of Duke's operating model and royalty partners. Post-period, 4 new investments have been concluded, which should help drive cash results higher over FY22E, despite a further 2 exits from the portfolio. As the company approaches near full deployment by FY23E, we expect to see FCF p/s and DPS
Companies: Duke Royalty Limited
Altus has acquired an effective 0.418% NSR over the producing Caserones copper mine in Chile. Altus’ royalty interest was acquired for $34.1m in cash as part of a strategic 50:50 partnership with EMX Royalty Corp. The acquisition was part financed with a $29m loan facility from major shareholder, La Mancha. The royalty is immediately cash generative and Altus expects the NSR to generate post-tax royalty flows of US$3.2m pa. Caserones is a large open-pit copper porphyry in Chile, operated by JX N
Companies: Altus Strategies PLC
Agronomics has announced a follow-on investment in existing portfolio company, Formo (previously LegenDairy Foods). The company has invested €3.15m in Formo's Series A funding, and now holds c5.9% of the enlarged share capital. The fundraise has generated a 7.5x uplift for Agronomics original €1m investment (Dec-19) and values Formo at c€180m (post-money) versus c€16m post-money value following the Seed round. Formo now becomes Agronomics largest holding, c9.1% and has delivered a net uplift in
Companies: Agronomics Limited
A disappointing earnings release coupled with low transparency on the Sandringham Financial Partners acquisition have led M&G’s share price to return to its pre-crisis level. While our valuation suggests a positive recommendation considering the low point, momentum remains uncertain.
Companies: M&G Plc
NextEnergy Solar Fund’s investment in NextPower III ESG is delivering in terms of widening international exposure with NPIII following its recent project win in Spain with another in Poland. This is the first acquisition the vehicle has made in Poland and the project will be supported by a fifteen year CfD. We see NESF’s investment in NPIII ESG as delivering a diversified asset growth opportunity and so far this is proving to be the case.
Companies: Nextenergy Solar Fund
Deltic Energy has had a highly successful 2021 year-to-date, as indicated in the interim statement. The key events have been the well investment decision in March for the Pensacola Zechstein prospect and the farm-out deal with Cairn Energy (CNE.L) in August over five licences in the Carboniferous/Zechstein fairway, towards the northern margin of the Southern North Sea Basin (SNS). The farm-outs firstly with Shell in 2019 and then Cairn have validated Deltic’s strategic focus on the Carboniferous
Companies: Deltic Energy PLC
What’s new: Tatton has signed a 5 year distribution partnership with Fintel and agreed to acquire Fintel’s Verbatim Funds for £5.8m cash consideration of which £2.8m is on competition and £3.0m is subject to performance
Companies: Tatton Asset Management Plc
Tatton has acquired the Verbatim funds from Fintel for (up to) £5.8m adding £650m AuM – and pushing Tatton’s AuM through the £10bn milestone. A long term strategic partnership has also been formed allowing Tatton to market to Fintel’s significant intermediary client base. We upgrade our earnings forecasts by +4% for the part year contribution in FY22e and +11% FY23e (the first full year) – but make no assumption around the potentially material opportunity from the distribution partnership. Tatto
Bluejay Mining* (JAY LN) – Greenland agrees new economic aid with the US
Ariana Resources (AAU LN) – Further drilling results from Kepez North
CATL (CATL N) – CATL may be joining the bidding war for Millennial Lithium Corp. as Chinese firms battle for EV material supply
Condor Gold* (CNR LN) – Senior mining engineer appointed to advance La India feasibility study
Cora Gold* (CORA LN) – Interims
Galileo Resources (GLR LN) – Sale of Kalahari Copper Belt licences expected to complete next week
Companies: AAU JAY CNR CORA GLR GGP POW RRR VUL SSW
NextEnergy’s JV with storage specialist Eelpower is an important strategic development. Storage demand is set to grow if the UK is to move towards its net zero targets and the combined attributes of the JV partners make it well suited to succeed here. For NESF it opens up a new route to asset growth in our view.
NextEnergy Solar Fund (NESF), which has the ability to invest up to 10% of its gross assets in energy storage, has announced a significant step into energy storage with the establishment of a £100m joint venture partnership with one of the leading battery storage specialists, Eelpower Limited (Eelpower). The joint venture is owned 70% by NESF and 30% by Eelpower. The partnership has also announced the signing of its maiden acquisition, a 50MW standalone battery storage project, which is ready to
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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Companies: Harworth Group PLC
In line interim results to 30 June 2021: reported revenue was £11.4m, down 3.4%, as a result of the trust disposals; and reported PBT was £0.9m, down 6.5% YoY also as a result of disposals as well as disappointing volumes in certain areas of new business, namely UK SIPPs and the flexible annuity product. Positively, however, higher-than-anticipated revenues came from UK workplace pensions, while recurring revenues improved, reaching 88% without the inclusion of transaction-driven income in the d
Companies: STM Group PLC
AEX Gold (AEXG LN) – Further management changes at AEX to drive development of new plan
Altus Strategies* (ALS LN) – Valuation 125p – First Caserones NSR royalty payment in respect of Q2/21 expected this month
Beowulf Mining* (BEM LN) – CEO letter to Minister Baylan regarding Kallak
Bluejay Mining* (JAY LN) – Valuation 37.7p – Interims highlight activity towards development of the Dundas ilmenite mine and other exploration
Caerus Mineral Resources (CMRS LN) – Progress report on prospective j
Companies: AEX ALS BEM JAY CMRS CORA PDL POW TYM URU CCZ IRR