26th Mar 2018 12:17
LONDON (Alliance News) - Target Healthcare REIT Ltd on Monday reported strong earnings growth for the first half of its financial year and announced the purchase of two new care homes in England.
Pretax profit for the six months to December-end was GBP15.1 million, up from GBP12.0 million the same period a year prior, on the back of rental income growth of 30% to GBP13.9 million.
At the end of 2017, Target Healthcare's property portfolio was independently valued at GBP334.9 million. This was a 19% increase from the start of the period, and the like-for-like increase was 3.3%. Target Healthcare's portfolio stood at 49 care homes at the end of 2017, after five acquisitions in the prior six months.
The company has increased its quarterly dividends by 2.7% to 1.6125 pence per share.
The firm announced two acquisitions on Monday, being care homes in Shrewsbury and Preston for a combined GBP15.6 million.
The homes got planning permission in 2017, and the firm will fund the development of the sites into 68-bed and 74-bed homes in Shrewsbury and Preston, respectively. They will be let on leases longer than 30 years, and both are due to open in 2019.
Looking ahead, Target Healthcare said it current has sufficient capital to keep growing its portfolio, and it has a "good" pipeline of potential further investments.
Shares were up 0.9% on Monday at 103.88 pence each.
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