Care REIT Plc
SRI Style:
Social Style
SDR Labelling:
Unlabelled with sustainable characteristics
Product:
REIT
Fund Region:
UK
Fund Asset Type:
Property
Launch Date:
07/03/2017
Last Amended:
May 2023
Dialshifter (
):
Fund Size:
£532.50m
(as at: 31/12/2022)
Total Screened Themed SRI Assets:
£532.50m
Total Responsible Ownership Assets:
£532.50m
Total Assets Under Management:
£532.50m
ISIN:
GB00BYXVMJ03
Contact Us:
Objectives:
Our aim is to provide shareholders with an attractive return, by investing in a diversified portfolio of UK healthcare real estate assets, in particular residential and nursing care homes.
This return will primarily be in the form of quarterly dividends. High-quality and financially sound tenants, long leases and inflation-linked rent reviews give us secure and stable income, which underpins our dividend payments. Our ability to add value through selective acquisitions and asset management offers the potential for income and capital growth for shareholders.
We believe that residential healthcare is a significant investment opportunity in the UK. A growing and ageing population is increasing demand for care, while the supply of suitable assets for providing that care is falling. As a well-capitalised landlord with an experienced Investment Manager, we are well positioned to deliver attractive returns to investors, while providing stability to residents and a commitment to enhance their homes wherever possible.
Sustainable, Responsible
&/or ESG Overview:
Our objective is to own and invest in a high-quality, resilient and diversified portfolio of care homes across the UK. We work in partnership with tenants who seek to provide high-quality care and work with them to grow, create value and deliver lasting social impact for the people living and working in our homes. Most residents in our homes are funded by their local authority or the NHS. Homes for publicly funded residents have traditionally had less investment than those for private payers.
Our investments contribute towards positive social outcomes through enabling our tenants to provide care for a range of residents from both the self-pay and publicly funded sectors. Our asset management projects provide further investment into the quality of the homes improving welfare for residents and staff. These projects also provide opportunities for enhancing the environmental performance of our homes in line with our net zero carbon targets.
Primary fund last amended:
May 2023
Information directly from fund manager.
Fund Filters
Sustainability - General
Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.
Find funds which substantially focus on sustainability issues
Find funds where there is a significant emphasis on (environmental and social) sustainability. Funds with a 'sustainability theme' typically place more emphasis on the area than funds with a 'sustainability policy' - meaning that it is more likely to drive investment selection. Strategies vary. See fund information for further detail.
A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
Find funds that specifically aim to invest (and manage assets) in ways that help to address all or some of the UN's Sustainable Development Goals (SDGs). See https://sdgs.un.org/goals).
Environmental - General
Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.
Climate Change & Energy
Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
Fund funds that have an energy efficiency theme - typically meaning that a fund manager is focused on investing in organisations that manage - or help others to manage - energy use more carefully and less wastefully - and so reduce greenhouse gas emissions.
Find funds that require all, or almost all, of the companies it invests in to have a ‘net zero action plan’ - meaning that the companies they invest in have worked out how they will, over time, reduce their total carbon (and other greenhouse gas) emissions to nil.
Will only invest in companies that report greenhouse gas emissions reduction strategies in line with the framework set out the by the Taskforce for Climate Related Financial Disclosure, which is increasingly becoming mandatory. See https://www.fsb-tcfd.org/ https ://www.ifrs.org/sustainability/tcfd/
Social / Employment
Find funds with policies or themes that set out their approach to health and wellbeing issues. Funds of this kind typically aim to invest in companies with high standards - or encourage high standards. Themed funds are likely to have more of an emphasis on this area. Strategies vary. See fund information for further detail.
Meeting Peoples' Basic Needs
Find funds with a thematic investment approach focusing on the ‘silver economy’ - in particular (typically) the issues and opportunities presented by changing demographics. This could include finance, healthcare and medicines and/ or longevity science to extend lifespans. Strategies vary. See fund literature for further information.
Healthcare and or medical theme or area of investment - the fund may have a single theme or many themes
Governance & Management
Find funds that have policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination. See fund literature for further information.
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Fund Governance
Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Impact Methodologies
Funds that aim to measure the positive real world environmental and / or social benefits that are associated with their investment strategy. Funds that aim to deliver positive impacts and measure those impacts may be referred to as 'impact funds' - although impact measurement is not restricted to impact funds. Strategies vary. See fund information.
Find funds that specifically state that they aim to deliver positive social (i.e. people related) impacts and/or outcomes.
Fund Management Company Information
About The Business
Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find fund management companies that take sustainability criteria into account when selecting and/or managing all of their property / real estate investments.
The leadership team of this asset manager have performance targets linked to environmental goals.
Collaborations & Affiliations
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Resources
Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)
Engagement Approach
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Climate & Net Zero Transition
Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.
Transparency
Find fund management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information.
Sustainable, Responsible &/or ESG Policy:
Our ESG Policy (provided as a link) governs our environmental and social conduct and the way we manage our business. It sets out seven core principles through which we aim:
- to be transparent in our conduct and reporting:
- to create homes which are better prepared for the future - more efficient, more climate resilient, more comfortable for our tenants' residents and staff, and respectful of the environment
- to foster co-operative and successful relationships with tenants, residents, shareholders and lenders, to create long-term shared value for all
- acknowledging the importance of and utilising our relationships with our tenants, we also aim to create and support a healthy, safe and positive living environment, which the residents are proud to call home
We currently report our progress through the EPRA Sustainability Best Practices Performance Report, for which we have received a Gold Award for 2020 and 2021.
Our Investment Manager, Impact Health Partners LLP, is a signatory to the UN Principles of Responsible Investment and embeds these in its management processes.
Our investments in care homes contribute towards positive social and environmental outcomes in the following ways:
- Supporting tenants to provide quality care to vulnerable people from both the self-pay and publicly funded sectors.
- Long term partnerships with tenants helps sustain local employment
- Investing in asset management projects improves quality of surroundings for residents, improved staff welfare and increased capacity in the social care system
- Long term affordable rents to tenants enables them to provide value for money care in the publicly funded sector
- Investment in our portfolio to improve energy efficiency and reduced carbon emissions
- Transparent reporting to stakeholders supports sources of capital into the sector
We have commissioned independent research by The Good Economy to identify and measure how our investments contribute towards positive social and environmental outcomes and we intend to publish this report in Q2 2023.
Process:
As can be viewed in our recently published 2022 Annual Report, ESG/Sustainability is fully embedded in our business model and decision-making process. Impact does not target specific geographies in the UK, but aims to work in partnership with like-minded care home operators who are also looking to deliver lasting social impact. As regards new acquisitions, as well as conducting our own due diligence, we will consult performance data provided by sources such as CQC.
All of our investments are operational healthcare real estate located with in UK and therefore our initial screening is based on the quality of the asset, track record of the operator and the environmental performance (EPC).
Specifically, our activities that result in positive social and environmental outcomes are:
- Detailed due diligence by specialist consultants on the environmental performance of potential new acquisitions and capex plans to improve where required
- Detailed modelling of the carbon emissions arising from our portfolio and a strategy to reduce this over time in line with industry best practice and governmental net zero targets
- Detailed analysis on the long-term affordability of our rents so that tenants can provide care services in a commercially sustainable manner
- Due diligence on new acquisitions to understand the long-term demand for healthcare needs in the local community for both publicly funded and self-pay residents
- Review of suitability of the asset to meet the current and future needs of residents and staff welfare
- Investing in existing real estate to prolong asset lifespan and lock in embodied carbon
- Invest in asset management projects in improve assets, increase capacity and enhance environmental performance
- Robust and regular reporting of management information by our tenants so we can monitor and review performance and work collaboratively with tenants to overcome any short-term issues
- Voluntary reporting against the TFCD framework to understand climate related risks and steps required to mitigate these
- Due diligence on the proposed tenant to ensure that they have the required management structure and quality
Resources, Affiliations & Corporate Strategies:
Impact has developed its ESG Strategy and Framework which can be viewed in our 2022 Annual Report.
In terms of Governance, we are establishing an ESG Committee with the appropriate terms of reference which reports into the Impact Heatlhcare REIT plc Board. The ESG Committee will be chaired by our Finance Director who also sits on the plc Board. The Board also includes a Non-Executive Director who is a Board Member of Chapter Zero, a trustee of the Green Alliance and a former finance director of the Carbon Trust.
The day- to-day management of ESG is the responsibility of an experienced Development Director who has significant sustainability experience. The Director is supported by specialist external ESG and Social Impact consultants.
Impact Health Partners LLP is a signatory to the UN’s Principles for Responsible Investment (UNPRI) and intends to make its first CDP submission in 2023.
Dialshifter
This fund is helping to ‘shift the dial from brown to green’ by…
We own a portfolio of care homes located across the UK. Our investment in existing assets helps to extend their economic lifespan and lock in embodied carbon. We actively pursue opportunities to improve energy efficiency and reduce GHG emissions through asset management projects. In partnership with our tenants we invest in environmentally sustainable measures such as air source heat pumps, LED retrofit lighting and solar PV panels. We screen potential investments to ensure that they can achieve long term sustainability targets in line with our policy of having a portfolio fully compliant with anticipated MEES regulations of EPC band B in 2030.
Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by…
In conjunction with leading consultants we have prepared a net zero strategy to identify how we can decarbonise our portfolio. Our strategy is modelled at asset level using real energy data aligned to science based targets. Using industry leading CRREM software we have identified a transition plan in alignment with the Paris Climate Agreement 1.5o trajectory. A range of measures and capex has been reviewed and we have committed to a target of 2045 to reach net zero status. We have set interim targets of a 15% reduction by 2025 and a 30% reduction by 2030 and will publish our progress against these.
SDR Labelling:
Unlabelled with sustainable characteristics
Literature
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
|
|---|---|---|---|---|---|---|---|---|
Care REIT Plc |
Social Style | Unlabelled with sustainable characteristics | REIT | UK | Property | 07/03/2017 | May 2023 | |
ObjectivesOur aim is to provide shareholders with an attractive return, by investing in a diversified portfolio of UK healthcare real estate assets, in particular residential and nursing care homes.
This return will primarily be in the form of quarterly dividends. High-quality and financially sound tenants, long leases and inflation-linked rent reviews give us secure and stable income, which underpins our dividend payments. Our ability to add value through selective acquisitions and asset management offers the potential for income and capital growth for shareholders.
We believe that residential healthcare is a significant investment opportunity in the UK. A growing and ageing population is increasing demand for care, while the supply of suitable assets for providing that care is falling. As a well-capitalised landlord with an experienced Investment Manager, we are well positioned to deliver attractive returns to investors, while providing stability to residents and a commitment to enhance their homes wherever possible. |
Fund Size: £532.50m (as at: 31/12/2022) Total Screened Themed SRI Assets: £532.50m (as at: 31/12/2022) Total Responsible Ownership Assets: £532.50m (as at: 31/12/2022) Total Assets Under Management: £532.50m (as at: 31/12/2022) ISIN: GB00BYXVMJ03 Contact Us: info@impactreit.uk |
|||||||
Sustainable, Responsible &/or ESG OverviewOur objective is to own and invest in a high-quality, resilient and diversified portfolio of care homes across the UK. We work in partnership with tenants who seek to provide high-quality care and work with them to grow, create value and deliver lasting social impact for the people living and working in our homes. Most residents in our homes are funded by their local authority or the NHS. Homes for publicly funded residents have traditionally had less investment than those for private payers.
Our investments contribute towards positive social outcomes through enabling our tenants to provide care for a range of residents from both the self-pay and publicly funded sectors. Our asset management projects provide further investment into the quality of the homes improving welfare for residents and staff. These projects also provide opportunities for enhancing the environmental performance of our homes in line with our net zero carbon targets.
|
||||||||
|
Primary fund last amended: May 2023 |
||||||||
|
Information received directly from Fund Manager |
||||||||
|
Please select what you would like to read:
Fund FiltersSustainability - General
Sustainability policy
Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.
Sustainability focus
Find funds which substantially focus on sustainability issues
Sustainability theme or focus
Find funds where there is a significant emphasis on (environmental and social) sustainability. Funds with a 'sustainability theme' typically place more emphasis on the area than funds with a 'sustainability policy' - meaning that it is more likely to drive investment selection. Strategies vary. See fund information for further detail.
Encourage more sustainable practices through stewardship
A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
UN Sustainable Development Goals (SDG) focus
Find funds that specifically aim to invest (and manage assets) in ways that help to address all or some of the UN's Sustainable Development Goals (SDGs). See https://sdgs.un.org/goals). Environmental - General
Environmental policy
Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information. Climate Change & Energy
Climate change / greenhouse gas emissions policy
Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
Energy efficiency theme
Fund funds that have an energy efficiency theme - typically meaning that a fund manager is focused on investing in organisations that manage - or help others to manage - energy use more carefully and less wastefully - and so reduce greenhouse gas emissions.
Require net zero action plan from all/most companies
Find funds that require all, or almost all, of the companies it invests in to have a ‘net zero action plan’ - meaning that the companies they invest in have worked out how they will, over time, reduce their total carbon (and other greenhouse gas) emissions to nil.
TCFD reporting requirement (Becoming IFRS)
Will only invest in companies that report greenhouse gas emissions reduction strategies in line with the framework set out the by the Taskforce for Climate Related Financial Disclosure, which is increasingly becoming mandatory. See https://www.fsb-tcfd.org/ https ://www.ifrs.org/sustainability/tcfd/ Social / Employment
Health & wellbeing policies or theme
Find funds with policies or themes that set out their approach to health and wellbeing issues. Funds of this kind typically aim to invest in companies with high standards - or encourage high standards. Themed funds are likely to have more of an emphasis on this area. Strategies vary. See fund information for further detail. Meeting Peoples' Basic Needs
Demographic / ageing population theme
Find funds with a thematic investment approach focusing on the ‘silver economy’ - in particular (typically) the issues and opportunities presented by changing demographics. This could include finance, healthcare and medicines and/ or longevity science to extend lifespans. Strategies vary. See fund literature for further information.
Healthcare / medical theme
Healthcare and or medical theme or area of investment - the fund may have a single theme or many themes Governance & Management
Anti-bribery and corruption policy
Find funds that have policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination. See fund literature for further information.
Encourage higher ESG standards through stewardship activity
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Fund Governance
ESG integration strategy
Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature. Impact Methodologies
Measures positive impacts
Funds that aim to measure the positive real world environmental and / or social benefits that are associated with their investment strategy. Funds that aim to deliver positive impacts and measure those impacts may be referred to as 'impact funds' - although impact measurement is not restricted to impact funds. Strategies vary. See fund information.
Positive social impact theme
Find funds that specifically state that they aim to deliver positive social (i.e. people related) impacts and/or outcomes. Fund Management Company InformationAbout The Business
ESG / SRI engagement (AFM company wide)
Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Sustainable property strategy (AFM company wide)
Find fund management companies that take sustainability criteria into account when selecting and/or managing all of their property / real estate investments.
Senior management KPIs include environmental goals (AFM company wide)
The leadership team of this asset manager have performance targets linked to environmental goals. Collaborations & Affiliations
PRI signatory
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'. Resources
In-house responsible ownership / voting expertise
Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Use specialist ESG / SRI / sustainability research companies
Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
ESG specialists on all investment desks (AFM company wide)
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types) Engagement Approach
Engaging on climate change issues
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets. Climate & Net Zero Transition
Net Zero commitment (AFM company wide)
Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Net Zero - have set a Net Zero target date (AFM company wide)
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Working towards a ‘Net Zero’ commitment (AFM company wide)
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'. Transparency
Dialshifter statement
Find fund management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information. Sustainable, Responsible &/or ESG Policy:Our ESG Policy (provided as a link) governs our environmental and social conduct and the way we manage our business. It sets out seven core principles through which we aim:
We currently report our progress through the EPRA Sustainability Best Practices Performance Report, for which we have received a Gold Award for 2020 and 2021.
Our Investment Manager, Impact Health Partners LLP, is a signatory to the UN Principles of Responsible Investment and embeds these in its management processes.
Our investments in care homes contribute towards positive social and environmental outcomes in the following ways:
We have commissioned independent research by The Good Economy to identify and measure how our investments contribute towards positive social and environmental outcomes and we intend to publish this report in Q2 2023.
Process:As can be viewed in our recently published 2022 Annual Report, ESG/Sustainability is fully embedded in our business model and decision-making process. Impact does not target specific geographies in the UK, but aims to work in partnership with like-minded care home operators who are also looking to deliver lasting social impact. As regards new acquisitions, as well as conducting our own due diligence, we will consult performance data provided by sources such as CQC.
All of our investments are operational healthcare real estate located with in UK and therefore our initial screening is based on the quality of the asset, track record of the operator and the environmental performance (EPC).
Specifically, our activities that result in positive social and environmental outcomes are:
Resources, Affiliations & Corporate Strategies:Impact has developed its ESG Strategy and Framework which can be viewed in our 2022 Annual Report.
In terms of Governance, we are establishing an ESG Committee with the appropriate terms of reference which reports into the Impact Heatlhcare REIT plc Board. The ESG Committee will be chaired by our Finance Director who also sits on the plc Board. The Board also includes a Non-Executive Director who is a Board Member of Chapter Zero, a trustee of the Green Alliance and a former finance director of the Carbon Trust.
The day- to-day management of ESG is the responsibility of an experienced Development Director who has significant sustainability experience. The Director is supported by specialist external ESG and Social Impact consultants.
Impact Health Partners LLP is a signatory to the UN’s Principles for Responsible Investment (UNPRI) and intends to make its first CDP submission in 2023. DialshifterThis fund is helping to ‘shift the dial from brown to green’ by… We own a portfolio of care homes located across the UK. Our investment in existing assets helps to extend their economic lifespan and lock in embodied carbon. We actively pursue opportunities to improve energy efficiency and reduce GHG emissions through asset management projects. In partnership with our tenants we invest in environmentally sustainable measures such as air source heat pumps, LED retrofit lighting and solar PV panels. We screen potential investments to ensure that they can achieve long term sustainability targets in line with our policy of having a portfolio fully compliant with anticipated MEES regulations of EPC band B in 2030.
Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by… In conjunction with leading consultants we have prepared a net zero strategy to identify how we can decarbonise our portfolio. Our strategy is modelled at asset level using real energy data aligned to science based targets. Using industry leading CRREM software we have identified a transition plan in alignment with the Paris Climate Agreement 1.5o trajectory. A range of measures and capex has been reviewed and we have committed to a target of 2045 to reach net zero status. We have set interim targets of a 15% reduction by 2025 and a 30% reduction by 2030 and will publish our progress against these. SDR Labelling:Unlabelled with sustainable characteristics Literature |
||||||||