LSE:IHR

Stock Analysis Report

Executive Summary

Impact Healthcare REIT Plc is a real estate investment trust externally managed by Carne Global AIFM Solutions.


Snowflake Analysis

Undervalued with reasonable growth potential.

Share Price & News

How has Impact Healthcare REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IHR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

IHR

-1.3%

GB REITs

0.3%

GB Market


1 Year Return

4.9%

IHR

13.5%

GB REITs

6.5%

GB Market

Return vs Industry: IHR underperformed the UK REITs industry which returned 13.5% over the past year.

Return vs Market: IHR underperformed the UK Market which returned 6.5% over the past year.


Shareholder returns

IHRIndustryMarket
7 Day-0.9%-1.3%0.3%
30 Day-0.9%1.1%-0.5%
90 Day0%5.6%3.8%
1 Year11.0%4.9%18.4%13.5%12.0%6.5%
3 Yearn/a27.7%9.7%18.7%3.8%
5 Yearn/a29.2%3.6%35.0%4.1%

Price Volatility Vs. Market

How volatile is Impact Healthcare REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Impact Healthcare REIT undervalued compared to its fair value and its price relative to the market?

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IHR (£1.08) is trading below our estimate of fair value (£1.98)

Significantly Below Fair Value: IHR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IHR is good value based on its PE Ratio (11.7x) compared to the REITs industry average (15.2x).

PE vs Market: IHR is good value based on its PE Ratio (11.7x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: IHR is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: IHR is overvalued based on its PB Ratio (1x) compared to the GB REITs industry average (1x).


Next Steps

Future Growth

How is Impact Healthcare REIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IHR's forecast earnings growth (37% per year) is above the savings rate (0.5%).

Earnings vs Market: IHR's earnings (37% per year) are forecast to grow faster than the UK market (12.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IHR's revenue (19.5% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: IHR's revenue (19.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IHR's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Impact Healthcare REIT performed over the past 5 years?

39.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: IHR has a large one-off gain of £4.5M impacting its June 30 2019 financial results.

Growing Profit Margin: IHR's current net profit margins (93.6%) are lower than last year (99.4%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if IHR's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare IHR's past year earnings growth to its 5-year average.

Earnings vs Industry: IHR earnings growth over the past year (39.4%) exceeded the REITs industry -20.8%.


Return on Equity

High ROE: IHR's Return on Equity (6.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Impact Healthcare REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: IHR has a high level of physical assets or inventory.

Debt Coverage by Assets: IHR's debt is covered by short term assets (assets are 2.3x debt).


Financial Institutions Analysis

Asset Level: IHR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if IHR has a sufficient allowance for bad loans.

Low Risk Liabilities: IHR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if IHR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: IHR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if IHR has an appropriate level of bad loans.


Next Steps

Dividend

What is Impact Healthcare REIT's current dividend yield, its reliability and sustainability?

5.71%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%1.8%markettop25%5.1%industryaverage3.8%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: IHR's dividend (5.71%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: IHR's dividend (5.71%) is in the top 25% of dividend payers in the UK market (5.07%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IHR has been paying a dividend for less than 10 years.

Growing Dividend: IHR's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (124%), IHR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IHR's dividends in 3 years are forecast to be covered by earnings (95.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average board tenure


CEO

Impact Healthcare REIT has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Rupert George Maxwell Barclay
Independent Non-Executive Chairman2.9yrsUK£42.00k0.057% £198.0k
Rosemary Boot
Senior Independent Non-Executive Director0yrsUK£33.00k0.0094% £32.4k
Paul Craig
Non-Executive Director2.7yrsUK£31.00kno data
Philip Charles Hall
Independent Non-Executive Director3.1yrsUK£31.00k0.0094% £32.4k
Amanda Aldridge
Independent Non-Executive Director0.9yrsno datano data

2.8yrs

Average Tenure

56yo

Average Age

Experienced Board: IHR's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.2%.


Top Shareholders

Company Information

Impact Healthcare REIT PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Impact Healthcare REIT PLC
  • Ticker: IHR
  • Exchange: LSE
  • Founded: 2016
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: UK£344.470m
  • Shares outstanding: 318.95m
  • Website: https://www.impactreit.uk

Location

  • Impact Healthcare REIT PLC
  • 9 Berkeley Street
  • 7th Floor
  • London
  • Greater London
  • W1J 8DW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IHRLSE (London Stock Exchange)YesShare CapitalGBGBPMar 2017
IHRLBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBGBPMar 2017

Biography

Impact Healthcare REIT Plc is a real estate investment trust externally managed by Carne Global AIFM Solutions. The firm invests in the real estate markets of United Kingdom. It primarily acquires, owns, leases, renovates, extends and redevelops high quality healthcare real estate assets. Impact Healthcare REIT Plc was formed on 7 November 2016 and is based in London, United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 23:03
End of Day Share Price2020/02/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.