Healthcare real estate will weather the economic storm with no loss of value, according to Impact Healthcare.
In an update this morning, the REIT said its independent valuer “had found no reason… to justify a shift in the investment yields used to value healthcare real estate”.
Its portfolio was valued at £543m on 30 September, up 2.4% on the previous quarter, or 0.8% like-for-like.
Net asset value rose by 5.3% on the previous quarter to £472m, or 116.62p per share.
The REIT said contracted rents had risen by 2.7% to £43.2m, while the portfolio itself had grown to 136 properties, of which 134 are care homes let on 20 to 35-year leases with no breaks and upwards-only, RPI-linked rent reviews.
Impact said: “While the headwinds threatening the UK economy gained in strength during the third quarter, the group’s tenants have also benefited from the tailwinds created by the supportive, long-term fundamentals of the sector in which they operate. Demand for their services is needs-based, not wants-based, and hence is not directly correlated to wider economic conditions.”
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