23rd Feb 2015 09:30
LONDON (Alliance News) - Target Healthcare REIT Ltd Monday reported a first-half profit, having generated a significant increase in its rental income across its portfolio, buoyed by a number of acquisitions in the period.
Target Healthcare generated an operating profit of GBP3.4 million in the six months to end-December, comprising a capital loss of GBP339,000 and a revenue profit of GBP3.7 million. The capital loss comprised of GBP2.1 million in acquisition costs relating to the ten care home assets it acquired during the period and an uplift in property valuations of GBP1.8 million, it said.
Total earnings per share for the period were 3.20 pence, up from 1.7 pence last year.
The company acquired ten modern care homes for a total of GBP52.7 million in the six month period, bringing the market value of its portfolio at the end of December to GBP135.6 million, representing a 2.7% increase on a like-for-like basis.
The company said the supply and demand imbalance of UK care-home stock remains favourable, while it is seeing attractive asset pricing and lease characteristics with annual uplifts in line with inflation. The company said it has a strong pipeline of "suitable investment opportunities".
"The group maintains a strong investment pipeline of both single and multi-asset acquisitions and the board remains confident of being able to add additional high quality assets to the portfolio," said Chairman Malcolm Nash in a statement.
Target Healthcare had cash balances of around GBP5.9 million as at end-December, and a net asset value per share of 95.5 pence, a 0.8% increase on its NAV per share as at end-June 2014.
The company declared two interim dividends during the period of 1.53 pence per share each, which it said represents a 2% increase on its previous quarterly dividend rates.
Target Healthcare shares were trading 0.2% higher at 100.81 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Target Healthc.