The healthcare real estate trust is issuing shares at 117p per share, a discount of 3.6% to its closing price per share of 122.6p as of 21 June 2022, and a premium of 1.8% to its net asset value per share of 114.9p as of 31 March.
The company said it intends to acquire 27 care homes for a total value of £169m, using £70m of existing resources including available debt and the issuance of new debt. It said it requires new equity to complete all transactions.
The company reported a European Public Real Estate Association (EPRA) certified net initial yield of 6.7% as of March 31 2022.
Its portfolio benefits from rental income directly linked to inflation via contractual RPI increases, subject to floors and caps, on 98% of its leases, the remainder of which are linked to CPI, the company said.
Supermarket income REIT raises £300m
"The portfolio continues to perform well, benefiting from the over-arching defensive characteristics of the care home market, as well our careful selection of homes and tenants with proven financial track records, sustainable rents and facilities which allow for a high quality of care," said chair Rupert Barclay.
The investment manager has continued to build a pipeline of investment opportunities which are consistent with the standards of our existing portfolio and allow for more portfolio diversification with some exciting asset management opportunities," he added.
The placing is expected to close on 5 July 2022, but may close earlier. The offer for subscription will not exceed €8m.
"Whilst equity capital market conditions remain challenging, this fundraise will allow us to secure a number of attractive investment opportunities and grow our inflation linked long leased REIT for the benefit of all stakeholders," added Barclay.
As of 21 June 2021, the company's market capitalisation was at £473 million.