2nd Aug 2016 08:53
LONDON (Alliance News) - Target Healthcare REIT Ltd on Tuesday said its net asset value per share dipped slightly in the three months ended June 30, but noted the long-term elderly healthcare investment markets had responded robustly to the UK's vote to leave the European Union.
The investor in UK care homes said its net asset value per share at June 30 was 100.6 pence, a 0.2% decline from the 100.8p at the end of March, largely due to costs relating to its property purchases and the payment of its third interim dividend. The net asset value total return for the quarter was 1.3%, Target Healthcare said.
The company invested GBP27.5 million in acquisitions inclusive of acquisition costs during the three month period, which it said was a "significant number of deals", buying one property in North Ireland, one in Merseyside, another in West Yorkshire and a final property in Gloucestershire.
Target Healthcare said it has also exchanged contracts to purchase a purpose-built care home in Essex and has committed around GBP9.2 million for this.
At the end of the period, Target Healthcare said it owned 37 care homes with a market value of GBP210.7 million, which on a like-for-like basis remained unchanged from the previous valuation point.
"Whilst rent reviews and yield compression on individual assets contributed to a small uplift in value, this was off-set by a reduction in the variable top-up rent payable on one of the group's assets," Target Healthcare said.
The company said that, despite political uncertainty, it was actively pursuing investment opportunities with activity in the long-term elderly healthcare investment market remaining strong.
The company has near-term investment opportunities of GBP30.0 million which it hopes to complete or commit funding to during the summer, it said.
"The long lease terms and annual rent uplifts within the healthcare market continue to provide an attractive long-term outlook which has been reflected by the robust response of healthcare REITs to the EU referendum result. The fundamental demographic situation in the UK is unchanged, showing a shift towards a greater dependence on care facilities for elderly people both in the short-term and beyond," Target Healthcare added.
Target Healthcare declared a fourth interim dividend of 1.545 pence per share for the three month period.
Shares in Target Healthcare were down 0.4% at 112.59p on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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