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MedicX Fund (MXF)

Business description

MedicX Fund is a specialist REIT, listed on the premium segment of the LSE, investing in primary healthcare infrastructure in the UK and the Republic of Ireland.

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 34.3 N/A 28.2 3.4 24.1 N/A
2017A 35.9 N/A 33.3 3.5 23.4 N/A
2018E 40.5 N/A 39.9 4.0 20.5 N/A
2019E 47.2 N/A 31.9 4.1 20.0 N/A

Last updated on 25/06/2018

Investment summary

H118 saw continued portfolio and rental growth, with costs well controlled. Near-term acquisition opportunities of £174m included a £64m portfolio of income-producing properties that MXF since completed, adding c £3.0m to rent roll (now £43.9m), with WAULT of 14 years and £5.3m average lot size. Adjusting for the c £37m fair value of acquired debt, the consideration was settled c £24m in cash/new debt and c £3m in new debt issued to the vendor. MXF has since issued 8.7m shares from its TAP facility, raising c £7.0m. Our forecasts allow for further acquisitions and share issuance. MXF expects to pay 3.02p in dividends for H118 before rebalancing total returns partly away from dividends paid and more towards capital growth. Our forecasts indicate a rebalanced, prospective fully covered DPS of 3.90p for FY19, an attractive c 5% yield, while the shares trade at around last published EPRA NAV.

Last updated on 29/06/2018

Industry outlook

Healthcare planning, with broad political support, suggests strong underlying demand for modern healthcare properties in both the UK and the RoI. In addition to providing investment opportunities, this seems likely to support rental growth.

Last updated on 29/06/2018

Key management

David Staples, Chairman
Mike Adams, CEO
Alan Pennell, Financial Controller

Company address

5 Godalming Business Centre
Woolsack Way
Godalming
Surrey
GU7 1XW
United Kingdom
+ 44 (0) 1483 869 500
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