15th Oct 2018 13:43
LONDON (Alliance News) - Target Healthcare REIT Ltd on Monday said its European public real estate index net asset value increased in the first quarter of its year due to new acquisitions and further investment in its development sites.
The real estate investment trust, which specialises in care homes, said its EPRA net asset value at September 30 stood at 106.1 pence, up 0.4% from 105.7 on June 30.
The net asset value total return for the three months to the end of September was 1.9% with the like-for-like value of the portfolio up 1.1%.
The company's investment properties were valued at GBP403.7 million at the end of the period, up 4.7% from GBP385.5 million June 30. These consisted of 58 assets with an annualised rent roll of GBP26.4 million with 52 properties operational.
The acquisition of one operational home, two sites for pre-let homes, and an exchange of contracts to acquire another newly constructed home, meant that portfolio additions for the period totalled GBP31.0 million.
A first interim dividend of 1.64475 pence per share was declared for Target Healthcare's current year, which ends June 2019. This represents a 2.0% increase year-on-year and an annualised payment of 6.579p per share, up from 6.45p per share for its 2018 financial year.
The company's rent reviews during the quarter had an average increase of 3.1%. Its cash stood at GBP24.0 million at the end of the quarter, down from GBP41.4 million.
Target Healthcare's available fixed-term debt is GBP70 million. As at September 30, the trust had drawn GBP66 million of this loan. A further GBP60 million of flexible debt is also available from revolving facilities
"Whilst the investment market remains competitive, our experience and track record enables us to successfully identify and acquire high quality assets, supporting the group's growth ambitions. We expect to shortly complete our diligence process on a number of pipeline acquisitions which would see deployment of our remaining investment capacity," said Target Fund Managers Ltd Chief Executive Kenneth MacKenzie.
Shares in Target Healthcare were up 0.4% at 112.98p on Monday.
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Target Healthc.