Impact Healthcare REIT plc has announced its half year results for the six months ended 30 June 2023. The company reported a 2.4% increase in like-for-like investment property value, resulting in a 5.6% increase in Net Asset Value (NAV) to £470.9 million. The total accounting return for the period was 6.2%. The company also declared a second quarter interim dividend of 1.6925p per share, in line with the targeted increase of 3.5% for the year.
The company maintained a strong balance sheet, with £250 million of committed debt facilities and a gross loan-to-value (LTV) ratio of 28.5%. The majority of rent increases are capped at 4.0%, providing relief to tenants facing inflation and wage costs. The company's tenant operators were able to increase fees and improve occupancy to 88.3%. The annual adjusted rent cover improved slightly to 1.8 times.
In terms of financial performance, the company saw a 12.2% increase in property investments, a 2.4% increase in like-for-like portfolio value, and a 5.6% increase in total NAV. The NAV per share increased by 3.2% over the six-month period. The company also reported a total accounting return of 6.17% for the period.
The company has been driving the growth of its annual contracted rental income through acquisitions and rent increases. It acquired six care homes and sold one, bringing the total number of properties owned to 140 with 7,725 beds. The contracted rent roll increased by 11.6% to £48.1 million.
Operational highlights include a 1.8 times annual adjusted rent cover, 98% rent collection, and an occupancy rate of 88.3%. The company has £9.8 million of asset management projects underway and 24 projects in the pipeline.
Overall, Impact Healthcare REIT has delivered a resilient performance in a challenging economic environment, with positive financial and operational results.