IN FOCUS
Impact Healthcare REIT
This trust is backed by demographic tailwinds and is yielding twice as much as the 10-year gilt
Someone who is drawing down the income from their pension may have one eye on using it to fund their longterm care in a retirement home a few years down the line . But the Impact Healthcare REIT can help them do the opposite , using the money generated by retirement homes to pay them an income after they stop working . Impact Healthcare REIT acquires , renovates and leases out UK retirement homes . Like many other property trusts , the increase in interest rates over the past year has caused it to move to a doubledigit discount – it was trading at a significant premium last summer . However , despite the violent fall in its share price , the trust ’ s managing partner Andrew Cowley claimed its fundamentals are solid . “ Our leases are all long-term , our WAULT [ weighted average unexpired lease term ] is just under 20 years and all leases are 100 % inflation linked ,” he said . He also pointed out growing demand and stagnant supply have created a powerful tailwind behind the long-term care sector . “ There were 1.7 million people over 85 in the UK in 2020 , with the ONS [ Office for National Statistics ] forecasting this would rise to 2.7 million by 2036 ,” the managing partner said . “ With 60 % growth , this is the fastest-growing part of the UK population . At the same time , net supply has been constant since 2007 .”
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