Healthcare REIT hopes to make Impact with £50m equity raise

Impact Healthcare plans to raise £50m through a share issue. The new shares will be issued at 114p per share, a 2.7% discount to yesterday’s closing price of 117.2p, but a premium of 2% to the REIT’s estimated NAV of 111.81p per share as at 30 November 2021. Impact plans to use proceeds from the fund raise to pay down its drawn revolving credit facilities, which currently stand at £67.5m. The REIT has total available debt facilities of £168m, of which £115m is currently drawn, including the £67.5m drawn down under its revolving credit facilities. LTV stands at 22.3%. In addition, Impact has £69m of potential acquisitions in advanced legal discussions and a medium to longer-term investment pipeline of more than £290m. Impact has also committed £26m to forward funding and asset management capex, of which £16m is yet to be deployed. Following the completion of deals begun in December, Impact will have a portfolio of 126 properties with 6,853 beds operated by 13 tenants. These are let on long-term leases with a weighted average unexpired lease term of 19.3 years to first break, with zero voids. Impact said its annual contracted rent has increased 12.2% to £38m, from September’s £33.9m. It added that its target dividend for the year to 31 December 2022 will increase by 2% to 6.54p per share. Chair Rupert Barclay said: “Our proposed initial issue will deliver the funds to enable the company to capitalise in short order on its attractive investment pipeline of assets and forward funding and asset management capex commitments. These will further enhance and diversify our resilient portfolio.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews