In 1991, there were less than a million people over the age of 85 in this country. Now that figure is approaching two million, and by 2030 a good three million UK citizens will be aged 80 and over.
Many of them will be able to live happily and healthily at home. About 15 percent, however, will need care, ideally in residential homes or nursing homes.
More than 400,000 seniors are already living in foster care, but that number will almost certainly increase over the next eight years and beyond. This creates many problems.
Demand growth: Impact Healthcare owns 129 nursing homes and is expanding as Britain’s population ages.
There are also financial ones that the government is trying to solve, not least through the extremely unpopular increase in state insurance tariffs.
But there are both logistical and operational barriers. The number of houses has decreased in 20 years, it is very difficult to find good staff, and the quality of service requires constant monitoring.
Health effects was created to try to solve some of these problems as well as provide substantial profits to shareholders.
The shares are worth £ 1.24 and should grow steadily as the company expands and develops. The group also offers attractive income through quarterly dividends. Last year the payout was 6.41 pence, and this year a payout of 6.54 pence is expected, which will affect a return of more than 5 per cent.
Impact owns 129 homes serving more than 5,000 residents. These homes are given over to specialized care companies that pay Impact rent monthly or quarterly. However, Impact doesn’t just sign leases with the first tenants to come.
Instead, companies are scrutinized over months or even years to ensure they have a genuine reputation for providing high-quality care to residents. Impact also pays close attention to the accounts of potential partners, working only with firms with a strong financial position that can afford to pay rent.
Intensive testing is a critical part of Impact’s strategy. The group is led by Andrew Cowley and Mahesh Patel, who have many years of experience in the industry.
When they are looking for homes to purchase, they analyze not only the local demand for care, but also the availability of employees nearby and the quality of managers on site.
After signing the leases, the tenants submit monthly reports so that any problems can be identified and resolved in a timely manner.
So far, Impact has assembled a group of 13 tenants, each of whom owns three to 80 homes.
Cowley and Patel prefer to work with small and medium-sized operators, who, in their opinion, are better able to closely monitor their business. The duo adds two or three new partners to their list each year, thereby steadily increasing the size of their estate.
Most Impact homes are located in the Midlands, in the north of England and Scotland, and two-thirds of residents are funded by the NHS or local authorities, which means most Impact rentals are supported by the government.
When leases are made, Patel and Cowley also guarantee that rent will be affordable. As a result, Impact consistently collected 100 percent of the lease, even during the Covid-19 pandemic.
This sustainability has allowed Patel and Cowley to pay attractive dividends that have been growing since their business opened in 2017.
Looking ahead, further strong growth is expected. Impact is actively committed to making homes better by providing good facility service, adding new facilities such as wet rooms, and improving environmental performance.
The group has also recently embarked on development, funding homes that have already been previously leased to tenants, including a new location in Norwich, combining full-time and auxiliary living.
Midas sentence: Few people want to put their loved ones in a care home or find themselves in it.
Cowley and Patel are acutely aware of this and strive to make Impact homes as warm and welcoming as possible.
The duo also recognizes that the UK needs better quality homes. Today, they occupy only 1.5 percent of the market, but would like to at least double that share, while ensuring that Impact only works with operators whose business is sustainable and valued. The approach has worked well so far and needs to be continued. Priced at £ 1.24 the stock is a long-term purchase – and the revenue is an added attraction.
Traded on: The main market Ticker: MSMP Contact: Impactreit.uk or 020 3146 7100
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MIDAS RELEASE THE RIGHTS: GET RICHER AS THE UK GETS OLDER – WITH IMPACT HEALTHCARE
Source link MIDAS RELEASE THE RIGHTS: GET RICHER AS THE UK GETS OLDER – WITH IMPACT HEALTHCARE