Elevation Healthcare Properties – H2 2024 Update

This follows from our last update for EHP in June 2024 for the first half of the year (link).

Capital Raising:  EHP raised £257m of equity and £74m debt capital during 2024.  Transactions in H2 include:

• Equity capital: following the last equity raise of £157m of equity during Q1 2024, EHP raised an additional £100m in Q3 2024. This equity is being deployed to acquire, or develop on a pre-let forward-funded basis, prime elderly-care real estate in the U.K. in line with EHP’s strategy
• Debt capital: raised an additional £35.5m green loan bank facility with AIB. All of the debt raised is fully hedged in line with EHP’s interest rate risk policy through a combination of swaps, caps and floors

Transactions: During 2024, EHP closed transactions amounting to £355m (of which £94m closed in H2).  During H2 2024, EHP added three new operator relationships to the portfolio (13 operators in total).  Transactions include:

• Acquired the land and agreed forward-funding to support the development of a high specification 78-bed care home in Havant with Anavo Group as developer and operator. Once completed in late 2026, the home will be let on a long-term lease with RPI-linked escalator with cap and collar to Anavo, a new operator relationship for EHP
• Completed the sale and leaseback of a high-quality 69-bed care home in St Neots (Cambridgeshire). Henbrook House is let to Connaught Care, another new operator relationship for EHP, on a long-term lease with RPI-linked escalator with cap and collar
• Completed the acquisition of land and agreed forward-funding to support the development of three new high-quality care homes in York, Bridlington and New Waltham with Yorkare Homes, comprising 190 beds. Once completed, the homes will be let on a long-term lease with RPI-linked escalator with cap and collar to Yorkare, a new operator relationship in 2024 for EHP

ESG: EHP has a robust and comprehensive ESG strategy in place to deliver targeted environmental sustainability and positive social outcomes.  Initiatives delivered during 2024 include:

• Elevation submitted its second annual submission to the Global Real Estate Sustainability Benchmark (“GRESB”) for EHP in 2024, reporting on the 2023 calendar year. EHP saw an overall increase in scoring of 17% achieving a three-star rating (compared to one star in 2023)
• Elevation has been working with sustainability consultants (Envision) to achieve our target of 100% green building certification across the EHP portfolio. In H2 2024 a further 19 EHP assets achieved BREEAM In-Use certification bringing the total coverage to 92%
• Working with sustainability consultants (Inhabit), Elevation has identified a net zero strategy aligned with the Science Based Targets Initiative for Financial Institutions with an interim target to reduce carbon emissions for the majority of Elevation’s AUM (including the full EHP portfolio) by approximately 65% per square meter by 2033 compared to 2023 (link to report)
• Raised a £35.5m green loan with AIB in H2 2024 (as referenced above), following a £153m Sustainability Linked Loan raised with HSBC in H1 2024

James Giles, Investment Director at Elevation said: “EHP seeks to address the structural undersupply of elderly care beds in the U.K. and delivers modern, high-quality care communities, designed to meet increasing environmental standards.  We are excited to confirm these latest transactions which demonstrate the stable and resilient growth of EHP and its successful alignment with the needs of investors and stakeholders.  We are delighted with the growth and achievements of EHP in 2024 and look forward to working towards our 2025 ambitions.”

Follow us on LinkedIn >
< Back to news

Disclaimer
This press release is issued by Elevation Advisors LLP, which is authorised and regulated by the Financial Conduct Authority. The information contained herein is provided for informational purposes only and does not constitute investment advice, an offer to buy or sell any financial instrument, or a solicitation of any kind. Past performance is not a reliable indicator of future results. Any forward-looking statements or projections are based on current assumptions and subject to risks and uncertainties that may cause actual outcomes to differ materially. This communication is intended solely for professional clients and eligible counterparties as defined by the FCA. It is not directed at retail clients and should not be relied upon by any person who does not meet the criteria for professional client classification. Investments may involve significant risk, including the potential loss of capital. Recipients should seek independent financial advice before making any investment decisions. While reasonable care has been taken to ensure the accuracy of the information provided, Elevation Advisors LLP makes no representation or warranty as to its completeness or reliability and accepts no liability for any loss arising from reliance on it.