12th Mar 2024 11:47
(Alliance News) - Target Healthcare REIT PLC on Tuesday announced higher contractual rent and continued improvement across key metrics, but reported a lower dividend.
The London-based real estate investment trust, which specialises in care homes said net asset value per share as at December 31 climbed 1.5% to 107.2 pence from 105.6p at June 30.
EPRA non tangible assets total return improved to positive 4.9% for the six months to December 31, from negative 5.4% a year ago. NAV total return swung to positive 4.3% from negative 4.9%.
Target Healthcare said contractual rent rose 2.4% to GBP57.9 million in the six months to December 31, from GBP56.6 million a year prior. It highlighted "continued improvement across all key metrics of underlying trading performance at the homes with rent collection increasing to 99%," compared to 96% a year ago, adding that resident occupancy for mature homes improved to 87% in December from 85% at June and rent cover rising to of 1.9 times in December from 1.75 in June.
Chair Alison Fyfe said this was "a strong performance when benchmarked against the wider real estate sector. Our portfolio is fully let, provides inflation-linked annual rental growth supported by tenants with robust underlying trading, and has historically demonstrated a low volatility in asset valuations."
However, the company reported an interim dividend of 2.83 pence per share for the six months to December 31, down 16% from 3.38p a year ago.
Looking ahead, Chair Fyfe said: "Commercial real estate is experiencing many headwinds right now, though we note a clear bifurcation in sentiment towards high quality assets with a solid long-term future in their current or near-current state, and those that cannot be described in that way. Investors increasingly value energy efficiency, social impact and positive experience for users and we remain deeply proud to be running a portfolio and strategy with real impact and longevity."
Target Healthcare shares were virtually flat at 81.19 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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