Rent reviews boost Impact Healthcare

Impact Healthcare REIT saw the value of its portfolio rise by 1.5% to £660.8m in the first quarter, on the back of inflation-linked rent reviews. Rent reviews on 66 of its 140 care homes and health facilities were completed in the quarter and produced an average uplift of 4% per annum. This equates to an extra £700,000 in contracted rent, taking the total rent across the portfolio to £50.1m pa. The group invested £1.5m in the quarter on asset management, primarily the refurbishment of a handful of the seed portfolio assets and an ongoing project at Yew Tree in Redcar in the North East, operated by tenant Prestige, which is due to complete in the second quarter of 2024. Occupancy was stable at 88.3% at 31 March 2024, in line with occupancy of 88.2% at 31 December 2023. Three care homes previously operated by Silverline, which ran into financial difficulties due to the pandemic, were transferred to a new tenant earlier this month and are expected to resume paying rent in the first quarter of 2025. Last year, Impact Healthcare REIT’s pretax profit boomed by 189% rom £16.9m to £48.8m for the 12 months to 31 December 2023, aided by a 14.5% increase in the value of its portfolio. Photo from Impact Healthcare